The Nebraska Department of Economic Development (DED) issued a guidance memorandum (DED Memorandum 22-02) for all nonprofit organizations receiving a grant under the Shovel-Ready Capital Recovery and Investment Act (Shovel-Ready Act). The purpose of DED Memorandum 22-02 is to clarify the scope of the statutory requirement that each nonprofit organization receiving a grant under the Shovel‑Ready Act must abide by the federal laws commonly known as Davis‑Bacon and Related Acts (DBRA). A copy of DED Memorandum 22-02 can be found on the DED Shovel-Ready webpage.

Following enactment of the Shovel-Ready Act, the United States Department of the Treasury issued its Final Rule and related guidance documents indicating that DBRA requirements do not apply to the Coronavirus State and Local Fiscal Recovery Funds (SLFRF)—which constitute the federal component to the Shovel-Ready grant funds—unless those funds are used in conjunction with funds from another federal program that requires enforcement of DBRA. Consequently, DED’s effort to apply DBRA to all Shovel-Ready nonprofits pursuant to Neb. Rev. Stat. § 81‑12,223(1)(b) of the Shovel-Ready Act would likely be severed from the necessary assistance of the United States Department of Labor and leave DED unable to properly implement DBRA.

The Department’s previous guidance regarding DBRA has been amended to align with the SLFRF Final Rule. DBRA compliance will only be required if any other funds that require DBRA compliance are used on a Shovel-Ready Act Project. If no other sources of funding for the Project described on the Shovel-Ready grant application require DBRA compliance, the Shovel-Ready grant will not require DBRA compliance. 

Nonprofit organizations receiving grants under the Shovel-Ready Act may contact their DED business incentives consultant with any questions concerning DED Memorandum 22-02.