Findings

Congress finds the following: (1)Third spaces—social environments distinct from home and work—are essential for democratic participation, mental health, social trust, and cultural vitality. They provide opportunities for residents to connect across lines of difference; reduce social isolation; and foster emotional well-being, civic engagement, and mutual aid. (2)Third spaces serve as engines for local economic resilience and community wealth-building. They act as vital incubators for local entrepreneurship and innovation by providing low-barrier environments for networking and collaboration. In urban and rural settings, vibrant social hubs drive foot traffic to surrounding businesses, increase property values, and foster a distinct sense of place that attracts sustainable long-term investment. By providing shared-use infrastructure, third spaces lower the cost of entry for small businesses and cooperative enterprises, turning social capital into tangible economic opportunity. (3)Decades of public disinvestment, segregation, urban renewal, and gentrification have disproportionately dismantled shared civic spaces in underserved and marginalized communities. The closure of community centers, parks, libraries, and gathering places has weakened social infrastructure that once supported local organizing, intergenerational relationships, and cultural continuity. (4)The widespread loss of accessible third spaces in urban and rural areas has reduced opportunities for collective problem-solving, mutual aid, and civic participation, thereby deepening loneliness, disconnection, and mistrust. (5)Social isolation and the decline of communal life have created conditions conducive to online radicalization and misinformation. When residents lack shared public spaces for dialogue, creativity, and belonging, they are more vulnerable to divisive and extremist influences online. (6)Third spaces also contribute to local economic resilience. By fostering collaboration, creativity, and shared-use infrastructure, these spaces can generate small business growth, cooperative enterprise, workforce development, and community wealth-building while remaining open and accessible to all. (7) The Federal Government has a vital role in seeding and studying innovative third space models that promote equity, inclusion, and sustainability. A national pilot program can catalyze local leadership, restore social cohesion, and demonstrate how inclusive, low- or no-cost shared public life can flourish in the twenty-first century.

Pilot grant program to renovate and develop third spaces

(a)

Establishment

The Secretary of Commerce, in consultation with the Secretary of Housing and Urban Development and the Secretary of Health and Human Services, shall establish a pilot program to award grants to eligible entities to renovate and develop third spaces. (b)

Grant priorities

In awarding grants under subsection (a), the Secretary shall prioritize any eligible entity that seeks to renovate or develop a third space that— (1)strengthens the local economy; and (2)mitigates social isolation and the decline of communal life. (c)

Application requirements

An application submitted by an eligible entity for a grant under subsection (a) shall— (1)include documentation of the history of the community in which the third space to be renovated or developed is located, including documentation of historical inequities— (A)within such community; and (B)between such community and other communities; and (2)describe how such eligible entity, in renovating or developing a third space pursuant to such grant, plans to— (A)engage members of such community in the design of such third space; (B)ensure that such renovation or development— (i)benefits members of such community; and (ii)does not exacerbate such historical inequities; and (C)preserve local— (i)culture; (ii)history; and (iii)identity. (d)

Use of funds

An eligible entity may use a grant under subsection (a) to— (1)plan the renovation or development of a third space, including through— (A)community engagement initiatives; (B)feasibility studies; and (C)other pre-development activities; and (2)pay construction costs associated with the renovation or development of such third space. (e)

Equity and historical justice requirements

(1)

Federal requirements

Not less than 60 percent of any amounts awarded under subsection (a) for a fiscal year shall be awarded to eligible entities serving low-income and underserved communities. (2)

Accessibility policies

Each eligible entity renovating or developing a third space pursuant to a grant under subsection (a) shall establish a policy to ensure that such third space remains free or low-cost to members of the public, except that an eligible entity may charge a reasonable rent to a business for the use of such third space. (f)

Expiration of pilot

(1)

In general

Except as provided in paragraph (2), the pilot program shall expire on the date that is 3 years after the date of enactment of this Act. (2)

Optional extension of pilot

Not later than 30 days before the expiration of the 3-year period following the date of the enactment of this Act, the Secretary may extend the pilot program for an additional period of 2 years. (g)

Reports

(1)

Eligible entity reports

Not later than 30 days after the date of enactment of this Act, the Secretary shall establish reporting requirements for an eligible entity renovating or developing a third space pursuant to a grant under subsection (a), which shall— (A)be responsive to the resources available to such eligible entity to engage in such reporting; and (B)include required reporting regarding— (i)attendance rates at such third spaces; (ii)programs offered at such third spaces; and (iii)social, cultural, and direct and indirect economic impacts of such third spaces. (2)

Reports to Congress

Not later than 3 years after the expiration of the pilot program under subsection (f), the Secretary shall submit to Congress a report— (A)summarizing metrics of success for third spaces renovated and developed pursuant to grants under subsection (a), including— (i)attendance rates at such third spaces; (ii)the number of new businesses formed in the communities in which such third spaces are located; (iii)the affordability of such third spaces; and (iv)survey-based measures of belonging experienced by attendees at such third spaces; (B)assessing, based on the metrics established in paragraph (1), the outcomes of the pilot program, including, for third spaces renovated and developed pursuant to grants under subsection (a)— (i)social, cultural, and direct and indirect economic impacts of such third spaces; and (ii)the effectiveness of such third spaces in— (I)reducing social isolation; and (II)supporting community life; and (C)providing recommendations regarding the expansion of the pilot program. (h)

Administrative expense cap

Not more than 5 percent of any funds appropriated to carry out this section for a fiscal year may be expended for Federal administration of the pilot program. (i)

Authorization of appropriations

There are authorized to be appropriated to carry out this section $200,000,000. (j)

Definitions

In this section: (1)The term eligible entity means— (A)a local government; (B)a nonprofit corporation; (C)a Federally recognized Indian tribe; (D)a Native Hawaiian organization; (E)a public library; (F)a community college; or (G)a partnership including at least— (i)one nonprofit corporation; and (ii)one local government or an agency thereof. (2)The term Secretary means the Secretary of Commerce. (3)The term third space— (A)means a space open to members of the public that— (i)does not function primarily as a residence or a workplace; and (ii)supports social, cultural, and economic life; and (B)may include— (i)a community athletic field; (ii)a community center; (iii)a library; (iv)a cultural center; (v) a makerspace; (vi)a nonprofit incubator; (vii)a park; (viii) a playground; (ix)a public market; (x)a schoolyard with a shared use agreement; (xi)a small business concern (as described in section 3 of the Small Business Act (15 U.S.C. 632)); and (xii)a combination of two or more spaces listed in clauses (i) through (xi). (4)The term underserved community means a community— (A)that is subject to one or more of the economic distress criteria under section 301.3(a)(1) of title 13, Code of Federal Regulations (or any successor regulation); and (B)that— (i)is located in a rural area; or (ii)has experienced— (I)poverty; (II)disinvestment; (III)racial segregation; (IV)economic segregation; or (V)the loss of third spaces due to— (aa)redevelopment; (bb)gentrification; or (cc)the construction of new infrastructure.