Coronavirus Update
June 3, 2021
Information and resources on federal responses to the coronavirus crisis for state, local, and regional government.
Top News
President Biden met with EPW Committee Ranking Member Shelley Moore Capito (R-WV) on June 2 at the White House as part of the Biden Administration’s bipartisan negotiations with Senate Republicans on a potential infrastructure stimulus package. Although the talks did not yield a breakthrough for a bipartisan compromise, they agreed to speak again on Friday. The White House and Senate Republicans have been in negotiations for several weeks on a package to invest in the nation’s infrastructure but remain divided on the size of the package, how to pay for it, and what types of infrastructure will be included. Senator Capito last met with President Biden at the White House along with other Republican senators on May 13, and White House officials have been engaging with Senate staff since. On May 27, Senate Republicans unveiled a $928 billion counterproposal after President Biden lowered his $2.25 trillion offer to $1.7 trillion on May 21. According to Politico, Republicans may make another counteroffer as soon as Friday.

The Hill reports that “Administration officials have pointed to June 7 as a date by which they would like to see a clear direction on how to proceed on infrastructure, suggesting that Biden could soon abandon negotiations if they prove unfruitful and pursue his infrastructure plan using budget reconciliation to sidestep a GOP filibuster. Biden initially pointed to Memorial Day as a date by which he wanted to see progress on infrastructure but allowed talks with Republicans to continue into this week while stressing the urgency of acting soon.” According to AP, Democratic senators plan to move forward on infrastructure legislation “with or without the support of Republican senators,” Senate Majority Leader Chuck Schumer (D-NY) wrote to fellow Democrats on Friday.

Capitol Hill. On May 27, House Oversight Select Subcommittee on the Coronavirus Crisis Chair James Clyburn (D-SC) sent letters to four financial technology (FinTech) firms and partner banks seeking documents and information related to their handling of Paycheck Protection Program (PPP) loans. The requests follow reports that FinTech companies and bank partners have been linked to a disproportionate number of fraudulent PPP loans. The letters were sent to “companies that have been linked to high numbers of fraudulent loan prosecutions and whose due diligence and fraud detection practices have been publicly called into question.”

On May 25, the Senate Commerce Subcommittee on Tourism, Trade, and Export Promotion held a hearing on “Investing In America’s Tourism and Hospitality Workforce and Small Businesses.” The hearing examined the state of the tourism and hospitality workforce in the wake of the COVID-19 pandemic. Additionally, the hearing reviewed regional impacts of COVID-19 on economies that rely on the tourism and hospitality workforce and provide insight on how Congress can support workers and small businesses as the travel and tourism industry rebounds.

On May 25 and 26, the House and Senate Appropriations Subcommittees on Labor—HHS—Education held hearings on the “National Institutes of Health’s FY 2022 Budget,” respectively. Witnesses included NIH Director Francis Collins and National Institute of Allergy and Infectious Diseases Director Anthony Fauci. Director Collins testified that the NIH will continue to research COVID-related impacts that the NIH has yet to understand and address, including the full impact of the pandemic on children; the pandemic and its related socioeconomic effects on Americans’ mental health; and the dramatic health disparities that exist across the American population as highlighted by the pandemic.

On May 26, the House Appropriations Subcommittee on Labor—HHS—Education held a hearing on the “FY 2022 Budget Request for the Centers for Disease Control and Prevention” with CDC Director Rochelle Walensky. Director Walensky testified that “The FY 2022 Discretionary Budget Request for CDC and the Agency for Toxic Substances and Disease Registry (ATSDR) includes a total funding request of $8.7 billion, an increase of $1.6 billion over FY 2021 Enacted. This is the largest increase in budget authority for CDC in nearly two decades and defends Americans’ health in four ways: 1) building public health infrastructure, 2) reducing health disparities, 3) using public health approaches to reduce violence, and 4) defeating other diseases and epidemics.”

On May 26, the House Small Business Committee held a hearing on “An Examination of the SBA’s Covid-19 Programs” with SBA Administrator Isabella Guzman. Administrator Guzman testified about the Paycheck Protection Program (PPP), Restaurant Revitalization Fund (RRF), Shuttered Venue Operator Grant (SVOG) program, and Economic Injury Disaster Loan (EIDL) program, among others. On May 28, the House Appropriations Subcommittee on Financial Services—General Government also held an oversight hearing on the Small Business Administration with Administrator Guzman. 

Please visit our TFG Coronavirus Legislative Trackers public health & safety, local government relief, and business assistance for detailed information on recently introduced bills.

Administration. SBA announced the closure of the Paycheck Protection Program; PPP provided nearly $800 billion in forgivable loans to businesses. SBA launched a new regional webinar series, “Getting Back on Track: Help is Here,” to provide Main Street entrepreneurs with the information and resources they need to continue to recover from the COVID-19 pandemic.  SBA also announced it is accepting applications for its new Community Navigator Pilot Program aimed at the nation’s smallest businesses, with a priority focus on those owned by socially and economically disadvantaged individuals, as well as women and veterans. Applications are due July 12 with award decisions by August.

HHS announced the Low-Income Household Water Assistance Program (LIHWAP). This program expands access to more affordable water and help low-income households affected by the COVID-19 pandemic pay their water and wastewater bills, avoid shutoffs, and support household water system reconnections related to non-payment.

Treasury announced more than 1.8 million additional Economic Impact Payments under the American Rescue Plan have been made over the past two weeks. Nearly 167 million payments representing $391 billion have been made since March 12. A University of Michigan study found that stimulus checks substantially reduced household hardship.

The Department of Justice announced criminal charges against 14 defendants for their alleged participation in various health care fraud schemes that exploited the COVID-19 pandemic and resulted in over $143 million in false billings. DOJ also announced a Florida couple was sentenced to prison for their participation in a scheme to file four fraudulent loan applications seeking more than $1.1 million in forgivable Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans.

A National Institutes of Health study found that SARS-CoV-2, the virus that causes COVID-19, does not appear to pose a threat to the safety of the nation’s blood supply.
Industry & Advocacy
The U.S. Conference of Mayors, National League of Cities, and National Association of Counties sent a joint letter to House and Senate leadership opposing any proposal that would repurpose urgently needed coronavirus relief funds for other activities. “In order to help our economy further recover and compete globally for decades to come, we continue to urge Congress to pass a comprehensive infrastructure package that addresses our nation’s transportation, water, clean energy, broadband and workforce development needs, but not at the expense of reducing funds already authorized under the American Rescue Plan Act,” the letter stated.

A digital COVID-19 certificate system became operational in seven countries on Tuesday intended to ease travel within the European Union. The document, known as the digital green certificate, records whether people have been fully vaccinated against the coronavirus, recovered from the virus, or tested negative within 72 hours. Travelers can move freely if at least one of the three criteria is met.

The Equal Employment Opportunity Commission released a factsheet stating that employers may offer “an incentive to employees to voluntarily provide documentation or other confirmation of a vaccination received in the community.” The information comes as business groups have demanded specific guidance on what incentives employers can provide employees who have been vaccinated against COVID-19 in order to safely return to work. The Commission also said federal laws do not prevent employers from requiring all employees “physically entering the workplace” to get vaccinated. However, employees still have to accommodate employees who – due to a disability or religious reasons – decided not to get vaccinated. 

Vaccine News

NIH started a Phase 1/2 clinical trial in which adult volunteers who have been fully vaccinated against COVID-19 will receive booster doses of different COVID-19 vaccines to determine the safety and immunogenicity of mixed boosted regimens. Trial results will be used to perform public health policy decisions on the potential use of mixed vaccine schedules should booster doses be indicated.
 
Moderna is applying for full approval from the FDA for its COVID-19 Vaccine. Gaining full FDA approval could make it easier for employers, universities, and other groups to mandate vaccination.
 
President Biden announced the National Month of Action to mobilize an All-of-America sprint to reach his goal of having 70% percent of adults with at least one shot by July 4.  Incentives such as free childcare, extended pharmacy hours, free beer, free sporting event tickets, and airline sweepstakes are all included in the push to vaccinate Americans.
 
President Biden announced the “Shots at Shop” initiative, turning to Black-owned barbershops and beauty salons to provide and display vaccine information and educational material as well as host vaccination events with assistance from local partners. 
Webinars, Events and Resources
Understanding Eligible Expenses of Fiscal Recovery Fund: Revenue Loss
NACo
June 3 – 2:00 PM ET
 
Breaking Down ARPA: Understanding the Funding Available to Your County
NACo
June 4 – 2:00 PM ET
 
CVS COVID-19 Vaccination Town Hall
NACo
June 16 – 4:00 PM ET
 
NACo Cyberattack Simulation – Pandemic
NACo
June 21 – 10:00 AM ET
 
GAO Reports of Interest
 
CRS Reports of interest:
For more information please contact Mike Miller: mmiller@tfgnet.com (707) 224-8648