HomeMy WebLinkAbout03/18/20 - Today in Congress: Special COVID-19 EditionStephanie Bush
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Subject:Today in Congress: Special COVID-19 Edition (3/18)
Today in Congress: Special COVID-19 Edition
Editor's note: TRP will be modifying the format of our ‘Today in Congress’ newsletter to provide
you with the latest intel and updates regarding the novel coronavirus (COVID-19) outbreak to
help your organization track and better understand the latest developments. As always, please
feel free to follow up with the TRP team with any specific questions or feedback.
Capitol Hill Update
Senators will reconvene for legislative business this morning as the upper chamber looks to
advance the second COVID-19 legislative response package. Despite speculation that the
Senate could further amend the House-passed bill over concerns about the paid leave
provisions, Majority Leader Mitch McConnell (R-KY) stated yesterday that he will look to pass
the Families First Coronavirus Response Act as is. A vote on the legislation is expected at
some point today following consideration of an amendment by Sen. Rand Paul (R-KY) to the
underlying bill that seeks to offset the spending in the measure.
Political Update
Former Vice President Joe Biden built on his commanding lead for the 2020 Democratic
presidential nomination yesterday, overwhelmingly beating Sen. Bernie Sanders (I-VT) in the
Arizona, Florida, and Illinois primaries. With 1,991 delegates needed to clinch the
nomination, Vice President Biden currently leads with 1,151 after his strong showing
yesterday, followed by Sen. Sanders who sits at 857. In other notable election news, eight-
term Rep. Dan Lipinski (D-IL) lost his primary to his primary to Marie Newman — a business
consultant and progressive activist. Rep. Lipinski becomes the first House incumbent of the
116th Congress to lose a primary in 2020.
COVID-19: What We’re Hearing
COVID-19 3.0. The Senate will likely remain in session until a final deal on the third
COVID-19 legislative package is clinched.
The Trump administration is preparing to submit a request that could reach
north of $1 trillion. The measure will reportedly include more than $500
billion in "general stimulus" funding aimed at providing monetary checks to
Americans.
The deal is likely to address the economic burdens for certain sectors that have
been adversely impacted by the outbreak, particularly in the hospitality,
airline, cruise line, and energy industries.
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TRP has obtained a draft copy of legislation floated by stakeholders
that would provide “immediate and medium to long-term assistance”
for the airline industry. The draft can be read here.
Senate Minority Leader Chuck Schumer (D-NY) and Senate Democrats have
introduced their proposal introduce that would provide at least $750 billion in
COVID-19 response aid.
The bill divides $400 billion toward "Emergency Surge"
Appropriations, $350 billion to bolster the social safety net.
Leader Schumer's wish list includes, among other things, funding to:
(1) address hospital treatment and capacity issues; (2) bolster
emergency child care; (3) provide help for small businesses; (4)
ensure access to affordable COVID-19 treatments; and (5) provide
immediate loan payment forbearance for all federal loans.
Speaker Nancy Pelosi (D-CA) outlined a series of principles for the next round
of COVID-19 legislative response efforts.
These principles include: (1) boosting access to long-term sick leave;
(2) promoting flexibility for uses of family and medical leave; (3)
expanding refundable tax credits; and (4) ensuring access to paid leave
for health care workers and first responders.
The package could include health care measures such as a boost in funding for
Community Health Centers and other health ‘extenders’ that are set to expire
on May 22.
Rumors also indicate that lawmakers are pushing for surprise billing
legislation to be included.
Senate Environment and Public Works (EPW) Chairman John Barrasso (R-WY)
is pushing for his Surface Transportation Reauthorization bill to be included in
the third package.
The five-year, $287 billion measure has been stuck in limbo after
passing the EPW Committee last July.
Congress faces a hard deadline of Sept. 30 to address funding for the
Highway Trust Fund, providing lawmakers with a potential legislative
vehicle to address other pressing infrastructure needs.
House Majority Leader Steny Hoyer (D-MD) told members to be on standby to
make plans to come back for votes on the third COVID-19 bill as soon as Mar.
24 if an agreement can be reached.
OMB Funding Request. Office of Management and Budget (OMB) Acting Director Russ
Vought submitted a letter to Congressional appropriators last night outlining a request
for $46 billion for agencies that have been stretched thin by the efforts to combat the
outbreak.
The request includes a total of $8.3 billion for emergency response efforts
through the Department of Defense (DoD), $16.6 billion for the Department of
Veterans Affairs, $11.5 billion for the Department of Health and Human
Services (HHS) and $3.2 billion for Homeland Security.
It also includes $2 billion to bolster FEMA’s disaster relief account, $100
million to help schools with response efforts, $400 million for homelessness
assistance grants through the Department of Housing and Urban Development
(HUD) and upwards of $13 billion for medical services through the
Department of Veterans Affairs (VA).
Buy American EO. The Trump administration is reportedly preparing to move
forward on a “Buy American” executive order that seeks to exercise war powers to
bolster manufacturing capacity.
Rumors speculate that the order would: (1) limit or prohibit exports of certain
pharmaceutical and medical products aimed at protecting the U.S. drug supply
chain; (2) promote dramatic expansions of the US Strategic and Active
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Pharmaceutical Ingredients (API) Stockpiles; and (3) crack down on
companies from providing investigational medicines for emergency use to
other countries.
The order could be issued by the White House as soon as this Friday.
COVID-19: What’s Happened
Travel Restrictions. This morning, President Trump tweeted that the U.S. will be
closing the northern border to Canada to all non-essential traffic. Trade will not be
effected.
President Trump announced that he would suspend all travel from Europe to
the United States for the next 30 days in addition to existing travel restrictions
from China and Iran.
Telehealth. CMS released new telehealth guidance that expands the list of eligible
services and providers as well as waives HIPAA requirements. It also clarifies that
states have the authority without guidance or approval from the agency to waive
policies within the Medicaid program.
Health care providers will be allowed to use popular video chat platforms,
including Apple's FaceTime, Facebook Messenger, Google Hangouts video or
Skype without risk of OCR penalties for not using HIPAA-compliant technology
during the national public health emergency.
IRS. Treasury Secretary Steven Mnuchin stated that the Internal Revenue Service (IRS)
will push the tax filing deadline back three months from the April 15 date in response
to the pandemic.
Social Distancing. The Trump administration issued new guidance that outlined a
number of suggestions aimed at stemming the spread of COVID-19. The guidance
outlines a series of steps — including avoiding social gatherings of 10 or more people
— aimed at mitigating the spread of the virus over the course of the next 15 days.
Centers for Disease Control and Prevention (CDC) issued guidance
recommending that Americans cancel or postpone gatherings of 50 more
people for the next eight weeks.
Dr. Anthony Fauci, Director of the National Institute of Allergy and Infectious
Diseases (NIAID), stated that Americans should be prepared to “hunker down
significantly more” as the federal government ponders additional steps to stem
the spread of the outbreak.
National Emergency. President Trump declared a national emergency in response to
the COVID-19 outbreak, invoking the Stafford Act that allows the administration to
provide more federal aid for states and municipalities.
This declaration would allow the states to request a 75 percent federal cost-
share from the Federal Emergency Management Agency (FEMA) for expenses
related to the outbreak, including medical tests and supplies, vaccinations,
emergency workers, etc.
The national emergency declaration will also allow the Centers for Medicare
and Medicaid Services (CMS) to utilize Section 1135 waivers to provide
flexibility to health care providers and state agencies during the outbreak.
FDA. Food and Drug Administration (FDA) Commissioner Stephen Hahn announced
that state public health departments across the country can now unilaterally authorize
laboratories to test for COVID-19. FDA will also allow diagnostics manufacturers to
distribute certain testing kits prior to the federal government granting emergency use
authorizations.
Tech. The Trump administration issued a call to action urging the tech industry to
collaborate and utilize data on COVID-19 and related viruses using artificial
intelligence (AI). It includes curated articles and data compiled by the Allen Institute
for AI. Additional information on this database can be found here.
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The Fed. The Federal Reserve announced yesterday that it will establish a Primary
Dealer Credit Facility to support dealers' market-making as the economy continues to
slow due to the COVID-19 pandemic.
The Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Office
of the Comptroller of the Currency (OCC) outlined actions aimed at providing
banks additional flexibility to support households and businesses during the
outbreak. Details on these steps can be read here.
The Fed slashed interest rates to a range of 0-0.25 percent, and will buy
hundreds of billions of dollars in bonds in an effort to stave off economic
hardships.
Legislative Response. Congressional lawmakers have been hard at work formulating
legislative responses aimed at bolstering response efforts. The first effort, an $8.3
billion emergency supplemental appropriations bill, cleared both chambers and was
signed into law on Mar. 6. TRP's full analysis of this bill can be read here.
Supreme Court. SCOTUS announced that it will postpone its next two weeks of oral
arguments — a move that could complicate the remainder of the court's docket for this
term.
‘Today in Congress’ includes updates provided by the House and Senate majority leaders, as well information derived
from publications including The Hill, The Wall Street Journal, Associated Press, Roll Call, and others.
The Wall Street Journal
Senate Expected to Pass Bill Offering Free Virus Testing, Paid Leave
WASHINGTON—The Senate is expected to vote on Wednesday on a second coronavirus response bill, aiming
to support the workers whose livelihoods are at risk and the safety net that may soon be protecting more
Americans as U.S. businesses shut down.
The interim measure, which would be followed by a third package potentially costing $1 trillion, would
ensure free testing for the Covid-19 disease caused by the virus and ensure at least two weeks of paid
emergency leave for a wide swath of people dealing with its effects. It would also give the states more
Medicaid funding, provide more money for food stamps and expand the unemployment insurance program.
The House passed the bill early Saturday and then approved changes on Monday that scaled back the paid-
leave program. The legislation passed over the objections of 40 Republicans, many from a wing of the party
that takes uncompromising policy positions. President Trump is expected to sign it into law.
“A number of my members think there were considerable shortcomings in the House bill,” Senate Majority
Leader Mitch McConnell (R., Ky.) said on Tuesday. “My counsel to them is to gag and vote for it anyway even if
they think it has some shortcomings and to address those shortcomings in the bill that we’re in the process of
crafting.”
The Senate convenes at 10 a.m., when Mr. McConnell may lay out more details.
Passage of the House measure is seen as necessary before lawmakers can begin negotiating a third package.
The new votes show how quickly things have evolved for Congress, which earlier this month passed an $8.3
billion measure to fund the development of a vaccine, help states respond and send dollars overseas to assist
in the response.
“Getting Phase 2 done is a predicate to getting Phase 3 done,” said Sen. John Thune (R., S.D.), the No. 2
Republican in the Senate. “I think we have a high level of interest, as does the White House, in moving
forward with a bill that addresses the concerns and the very real needs small businesses have with liquidity,
that deals with industries obviously like aviation.”
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Passing the interim coronavirus measure swiftly without a roll-call vote was foreclosed as an option when
some Republicans balked at agreeing to the House measure. Sen. Rand Paul (R., Ky.) has won a vote on an
amendment to offset the costs, his spokesman said, a step that would make possible Wednesday’s vote. Mr.
Paul had been threatening to delay the legislation unless he got an amendment vote. In the Senate, voting can
take days unless all 100 senators can agree to legislation. Mr. Paul’s plan to offset the costs includes making
permanent a law that requires a Social Security number to claim a child tax credit.
Beyond that, in a potential third phase of legislating, the Trump administration has proposed an additional $1
trillion stimulus package to help households and businesses, including by sending checks directly to
Americans. On Tuesday, Mr. McConnell said that the Senate would remain at work “as long as it takes to pass
yet another measure beyond the one that came over from the House.”
Meanwhile, the White House Office of Management and Budget has sent a request for $45.8 billion in
emergency funding to Capitol Hill. Instead of broad fiscal stimulus, the request is aimed at bolstering federal
agencies responding to the pandemic, proposing an additional $11.5 billion for the Department of Health and
Human Services, with $3.4 billion of that put toward the Centers for Disease Control and Prevention.
The letter from acting OMB Director Russ Vought also calls for an additional $8.3 billion for the Department
of Defense, more than $16 billion for the Department of Veterans Affairs and $3.2 billion for the Department
of Homeland Security, among other increases.
Lawmakers are reviewing the funding request, which may ultimately be incorporated into the Phase 3
economic package that the administration and Congress are racing to formulate in the coming days.
The Hill
Democratic lawmakers call for emissions reductions in airline bailout
A number of Senate Democrats say any airline bailout package must include measures that limit carbon
emissions from the industry.
The airline industry asked the government Monday for over $50 billion in assistance, including both $30
billion in grants and another $25 billion in loans and tax relief, as airline traffic has nosedived amid the
coronavirus outbreak. President Trump has said he intends to provide help for the airlines.
But Sens. Sheldon Whitehouse (D-R.I.) and Ed Markey (D-Mass.) say those funds should come with strings
attached.
“Carbon offsets should be a condition for any such bailouts,” Whitehouse tweeted Tuesday afternoon.
“Airlines that want public support should live public values.”
Though a small percentage of global emissions, the airline industry is one of the rapidly growing sectors of
greenhouse gas emissions.
Emissions from global air travel increased 32 percent between 2013 and 2018, according to data from the
International Council on Clean Transportation released late last year.
Another study from the same organization found that growth outpaced fuel efficiency measures taken by
airlines threefold.
“There’s a big imbalance between emissions growth and fuel efficiency gains. A bailout should try to address
that core challenge,” said Dan Rutherford, an author of both of the studies and the aviation director at the
council.
He hopes any bailout would mirror the 2008 and 2009 bailouts for the auto industry, which were followed by
a commitment to more aggressive fuel economy regulations.
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Rutherford said the package should not just provide relief to the industry, but spur use of biofuels — perhaps
having the government pick up some of the cost, which can be two to five times higher than for traditional jet
fuel — or work to reduce pollution from smaller flights.
“If you had just a straight bailout or \[jet\] fuel subsidy I think you're ... not going to get the new investments
that you need" in alternative fuels, he said. "But if you go a different route and provide incentives for airlines
to retire the less fuel efficient aircraft used on marginal routes, that could move the ball forward."
Airlines for America, the trade association for the airline industry, did not immediately respond to request for
comment.
Lawmakers have yet to offer up many specific conditions on the environmental front but some have included
demands for labor and consumer protections.
“Any infusion of money to the airlines must have some major strings attached – including new rules to
prohibit consumer abuses like unfair change and cancellation fees; protections for front-line workers like
flight attendants, pilots, and airport workers; special consideration for our smaller, regional carriers not
represented by the major trade associations; and the development of long-term strategies and targets to
reduce the carbon footprint of the airline industry,” Markey said in a release Monday.
“As our next coronavirus stimulus package is developed, I will demand these conditions be met before
supporting any airline bailout," he added.
Roll Call
Treasury, Fed take new actions to bolster lending during pandemic
The Treasury Department, Federal Reserve and other regulators on Tuesday took more steps to revitalize
lending in a market left reeling by the worldwide COVID-19 pandemic.
The Fed, along with Treasury's Office of the Comptroller of the Currency and the Federal Deposit Insurance
Corporation, issued a statement encouraging banks to use excess reserves to lend to households and
businesses.
Banks have more than doubled their capital and liquidity levels over the past decade and are now
substantially safer and stronger than they were previously, the regulators said in a statement Tuesday.
“Since the global financial crisis of 2007-2008, U.S. banking organizations have built up substantial levels of
capital and liquidity in excess of regulatory minimums and buffers,” the agencies said. The largest banking
organizations hold $1.3 trillion in common equity and $2.9 trillion in high quality liquid assets.
The agencies said these capital and liquidity buffers were designed to provide banks “with the means to
support the economy in adverse situations and allow banking organizations to continue to serve households
and businesses.”
The three banking agencies also adopted an interim final rule that revises the definition of “eligible retained
income,” addressing the impact of dislocations in the U.S. economy as a result of COVID-19, the disease
caused by the coronavirus.
The regulators said modifying this definition allows banks to more freely use their capital buffers, which will
promote lending activity and other financial activities. This could help banks continue to lend even as they
realize a sudden drop in capital ratios. Such a drop could be a strong incentive for banking organizations to
limit lending and other financial intermediation activities to avoid facing abrupt limitations on capital
distributions, such as dividend payments.
“Thus, the current definition of eligible retained income, particularly in light of present market uncertainty,
could serve as a deterrent for banking organizations to continue lending to creditworthy businesses and
households," the regulators said.
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The interim final rule will go into effect upon publication in the Federal Register, which is expected within
days.
The Treasury Department and Federal Reserve also said they were taking a page out of the 2007-2009
financial playbook and reestablishing a commercial paper funding facility to keep credit flowing into the
economy.
“By providing short-term credit, the CPFF will help American businesses manage their finances through this
challenging period,” Treasury Secretary Steven Mnuchin said in a written statement.
“Commercial paper markets directly finance a wide range of economic activity, supplying credit and funding
for auto loans and mortgages as well as liquidity to meet the operational needs of a range of companies,” the
Fed said in a separate statement. “By ensuring the smooth functioning of this market, particularly in times of
strain, the Federal Reserve is providing credit that will support families, businesses, and jobs across the
economy.”
The CPFF will be structured as a credit facility to a special purpose vehicle, which will purchase three-month
U.S. dollar-denominated, well-rated commercial paper from eligible issuers through the New York Fed’s
primary dealers. Commercial paper is a short-term debt instrument issued by companies. They usually
mature within 270 days.
Treasury will provide $10 billion of credit protection to the Fed in connection with the commercial paper
funding facility.
The last time the Fed established a CPFF was in the fall of 2008, during the height of the financial crisis.
Politico
Administration seeks more funds for TSA, DOT amid coronavirus response
The Trump administration is expected to request more than $21 million in emergency funding for various
DOT programs, as well as nearly $153 million to support TSA operations in response to the coronavirus
pandemic, according to a request obtained by POLITICO.
The TSA request includes $26 million in estimated overtime and travel costs; $54 million toward increased
airport sanitation costs; $20 million for additional explosive detection swabs and $53 million for protective
equipment for baggage screeners. It’s part of a broader $3 billion request for all of the Department of
Homeland Security.
Largest in the DOT request is $16 million in additional funding for the FAA to cover “additional janitorial
services” and “additional bandwidth for increased teleworking.” The Office of the Secretary seeks $100,000
for additional overtime and $1.7 million to boost capacities for working remotely.
Additionally, the administration requests $500 million in several types of grants to make up for “estimated
revenue losses” through June 30 for Amtrak. It also seeks $250,000 for the FRA for “additional inspection
equipment.”
“The aim of this request is to maintain that capacity and ensure that resource needs created by the pandemic
response are met,” wrote acting OMB chief Russ Vought in a letter accompanying the $48 billion emergency
spending request to Congress.
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