The proposed bill, General Assembly Committee Bill No. 5579, aims to establish a "Hispanic and Communities of Color Nonprofit Growth and Stabilization Fund" effective July 1, 2025. This fund will support eligible community-based organizations that serve predominantly Hispanic and communities of color by enhancing their operational capacities and ensuring long-term fiscal sustainability. To qualify as an eligible organization, entities must meet specific criteria, including having tax-exempt status, being operational for at least three years, and being led by individuals from the communities they serve. The fund will be financed through appropriations from the General Fund and will be used for grants to support various capacity-building initiatives, such as financial management and nonprofit leadership training.

The bill outlines the responsibilities of the Commissioner of Social Services, who may contract with a nonprofit organization to administer the fund, ensuring that the organization has significant experience in supporting Hispanic charitable organizations. The administration of the fund will involve a competitive procurement process for grants, with a focus on culturally competent and language-accessible services. Additionally, an allocation panel will determine grant eligibility, and the Commissioner will report on the fund's impact by January 1, 2027. The bill does not affect existing contracts between the Department of Social Services and community-based organizations as of the effective date.