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Assemblymember Jenifer Rajkumar introduces ‘Get Nonprofits Paid Act’
The new bill mandates New York City to pay nonprofit vendors within 30 days, addressing chronic payment delays
Jenifer Rajkumar / Image- X (@JeniferRajkumar)
Indian-American Assemblymember Jenifer Rajkumar has introduced the "Get Nonprofits Paid Act," a bill aimed at expediting payments to nonprofit vendors contracted by New York City.
The legislation requires the city to pay nonprofits within 30 days, addressing delays that often stretch for months.
“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, as quoted by media outlet QNS.
Notably, the city depends on nonprofits for over $12 billion in service each year. However, in Fiscal Year 2022, three-quarters of the city’s contracts with nonprofits were not registered before the start date, leaving organizations waiting up to nine months for payments. Many were forced to take out interest-bearing loans to cover payroll and operational expenses.
The proposed bill mirrors existing state and federal laws mandating prompt payment to contractors. It includes exemptions, such as allowing the Comptroller to offer interest-free loans or waivers during declared states of emergency.
This initiative is part of Rajkumar’s broader effort to modernize New York City’s procurement system. Her recent bill, A8864, aims to transition public comment hearings to an online platform, potentially saving 20 days per project. Another measure, A10543, introduced progressive design-build contracting to expedite infrastructure projects.
Rajkumar, who represents the 38th Assembly District, is also campaigning to become New York City’s next comptroller, a role that would give her oversight of the city’s financial management.
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