Assembly Member Jenifer Rajkumar has introduced a groundbreaking new bill, which will end months of waiting for nonprofits to receive payments.
The ‘Get Nonprofits Paid Act’ will ensure prompt payments to the many nonprofits working for New York City. Under Rajkumar’s bill, the City will be required to pay nonprofit vendors within 30 days.
In Fiscal Year ‘22, three-quarters of the City’s contracts with nonprofits were not registered before the start date and regularly took nine months to process. Nonprofits must provide services while waiting for payment, with many resorting to interest-bearing loans to meet payroll and other expenses.
New York City has over $12 billion in contracts with nonprofits for essential services. These include foster care, supportive housing, crime prevention, immigrant services, senior care, and community outreach. Nonprofits provide high-quality, cost-effective services, often with unique cultural and language competencies for the City’s diverse communities.
The ‘Get Nonprofits Paid Act’ is similar to existing State and Federal laws on promptly paying contractors. It contains exemptions if the New York City Comptroller can provide an interest-free loan in lieu of payment or if contracts are for response to a declared State of Emergency.
“We must end the era of nonprofits being paid months and even years too late. Our nonprofits provide critical services for the most vulnerable New Yorkers, and we must provide for them by getting them the funding they are owed. Paying our nonprofits on time gives them the financial support and security they need to thrive,” Rajkumar stated.
Rajkumar, who represents the 38th Assembly district, which includes Glendale, Ridgewood, Woodhaven, Richmond Hill, and Ozone Park, is also currently campaigning to become New York City’s next Comptroller.
This bill is the latest in her push to expedite New York City contracting. Recently, Rajkumar introduced bill A8864, which moves the city’s procurement process into the digital age by transitioning public comment from in-person hearings to an online platform. She believes this reform will save an average of 20 days per project, accelerating the timeline for critical infrastructure initiatives such as affordable housing, transit, and schools.
Alongside A8864, Rajkumar and her colleagues passed another bill, A10543, which authorizes progressive design-build for City projects. This method allows the City to select a single entity for design and construction from the outset, reducing delivery times and saving millions in taxpayer dollars.
