Clearly, COVID-19 is having a devastating impact on families, workers and businesses in Hampshire County. Without immediate congressional action, more of our neighbors will lose the federal supports that are keeping them from tumbling into economic devastation.
Tackling poverty and near poverty, which is being exacerbated by our current situation, is at the heart of our work at the United Way of Hampshire County. Over 90% of our investments support basic needs across 34 programs because over 40% of people in our county are in poverty or close to it. And that was before COVID-19.
As a result, United Way of Hampshire County is being asked to help more than ever. We are fielding increased requests from nonprofits, municipalities and individuals for assistance. People ask us for funding, volunteers, food, diapers, jobs … you name it.
Other nonprofits we support are feeling the increased pressure. The Easthampton Community Center has been seeing up to 30 new families needing help a day. It Takes a Village had a remarkable 2,400% increase in requests for support this spring. Food banks and pantries are experiencing up to a 30% need increase.
In short, more is needed at the same time that support is threatened. Individual and corporate donations are likely to decrease as they did during the 2008 Great Recession as businesses fail and people lose jobs.
Across the state, nonprofits already report revenue loss of $8.6 billion. Almost half of the organizations have reduced staff. Nonprofits in the Pioneer Valley, including Hampshire County, reported the highest percentage of organizations in the state seeking philanthropic support.
The work of nonprofits has rarely been so critical. The pandemic has resulted in an unparalleled public health and economic crisis. It has exacerbated racial and economic disparities.
That’s why the nonprofit sector seeks a reliable and dedicated source of funding to continue serving our neighbors most in need. Over the past few days, United Way Worldwide (our parent organization) has collaborated with nearly 200 national charities to design an economic relief proposal for the nonprofit sector. And thanks to the bipartisan efforts from Sens. Elizabeth Warren and Ed Markey and U.S. Reps. Richard Neal and Jim McGovern, Congress has passed legislation to help families stay in their homes, keep food on the table and make ends meet.
But now, Congress must act quickly — and in a bipartisan manner — to pass another bill to address the long-lasting impact of this pandemic. Here are six ways that Congress can provide support to everybody in Hampshire County and across Massachusetts.
■Expand the above-the-line charitable giving tax deduction.
All taxpayers should receive a tax incentive for their charitable gifts, especially now when donations can do the most good. Demand for nonprofit services in Hampshire County has skyrocketed, yet charitable donations across the U.S. dropped by 6% in the first quarter of 2020. The temporary $300 charitable deduction included in the CARES Act is a step in the right direction.
■Expand the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) for working individuals and families.
EITC and CTC are some of the best tools for fighting poverty. When the economy suffers, many workers lose their earned income and thus no longer qualify for the EITC, which helps them stabilize their income. Filers should be able to use their income from 2019 or 2020 when calculating their 2020 EITC and CTC, as policymakers have done in the past for families affected by natural disasters.
We’re also calling for an expansion of the Child Tax Credit and Earned Income Tax Credit as effective policies for stimulating a weakened economy. An expansion will help families cover the essentials such as food, transportation and electric bills.
■Increase funding for Medicaid.
Medicaid is a lifeline for millions, especially now. Funding should last until we’re through COVID-19 and the economy has recovered. Every dollar spent on increasing Medicaid adds $2 to our gross domestic product. Increasing the federal Medicaid match rate by at least 12% for the duration of the pandemic is one of the most effective economic boosts Congress can offer during this unprecedented crisis. It is a solid investment.
■Provide supplemental emergency funding for programs that support the financial stability of families and communities.
Congress should invest in programs that are supporting our local response, including $150 million for Mass 211, $17 million for Volunteer Income Tax Assistance Program (VITA), $200 million for Emergency Food and Shelter Program (EFSP) and $50 billon to stabilize the child care sector.
Massachusetts callers can dial Mass 211 — supported by United Way — to speak with a trained community resource specialist to access locally available resources that help meet their needs, and are doing so in record numbers. An emergency investment in this vital resource will boost 211’s capacity to answer tens of millions of new calls, including inquiries about COVID-19, mental health services, and essential needs to help families and individuals get through the pandemic.
Since COVID-19, there has been a spike in families experiencing food insecurity. Nationally, 14 million children are still not getting enough to eat. When American families were facing elevated hunger and food insecurity in wake of the 2008 Recession, Congress increased monthly SNAP benefits by 15% to meet the moment. In the face of a pandemic and even deeper economic crisis, surely Congress can make this same commitment today.
■Invest More in Enhanced Unemployment Insurance and Economic Impact Payments.
We must further extend unemployment insurance benefits to respond to the continuing job losses and furloughs. We must provide additional cash support for individuals and families, including seniors and very-low income Americans, so they have access to this critical support.
United Way of Hampshire County and other local agencies are on the front lines of the pandemic. We see the impact every day. We will continue to do everything we can to support those most in need, because we know our families and communities can’t wait. We call on Congress to do the same.
John Bidwell is the executive director of the United Way of Hampshire County.