Coronavirus Update
February 11, 2021
Information and resources on federal responses to the coronavirus crisis for state, local, and regional government.
Top News
While the Senate is focused on the second impeachment trial of President Trump, nine House committees are holding markups this week on their respective portions of the $1.9 trillion COVID-19 relief proposal authorized by the House and Senate-passed fiscal year (FY) 2021 budget resolution (S. Con. Res. 5). The resolution serves as an outline for President Joe Biden’s COVID-19 relief plan, the American Rescue Plan, first unveiled on January 14. The resolution provides reconciliation instructions allowing the Senate to pass the final bill with a simple majority of 51 votes rather than the 60 votes typically needed to advance legislation in the upper chamber.

The goal for Democratic leaders is to have the full reconciliation package on the House floor by the week of February 22, followed by Senate consideration during the weeks of March 1 and 8, and enactment into law by March 14, when $300 weekly federal unemployment benefits are set to lapse.

Here’s what you need to know about the different sections of the COVID-19 relief proposal being considered by House committees this week (note the provisions are organized by committee):

Oversight Committee 
$350 billion in Coronavirus State and Local Fiscal Recovery Funds 
  • States (including Washington, DC) will receive $195.3 billion (60%).
  • $500 million state minimum, to a total of $25.5 billion.
  • $169 billion distributed to states by population.
  • Local governments will receive $130.2 billion (40%), which will be divided evenly between cities/town and counties.
  •  Funding will be distributed to all local governments regardless of size and population.
  • See spreadsheet from the Committee for estimated calculation for every unit of local government.
  • $65.1 billion for cities/towns.
  • Cities/towns over 50,000: $45.57 billion (CDBG eligible entities).
  • Cities/towns under 50,000: $19.53 billion (non-CDBG eligible entities).
  • $65.1 billion for counties based on population. 
  • Territories will receive $4.5 billion.
  • Tribal governments will receive $20 billion. 
Allowable Uses 
  • Respond or mitigate the public health emergency with respect to the coronavirus disease or its negative economic impacts. 
  • Cover costs incurred as a result of such emergency.
  • Replace revenue that was lost, delayed, or decreased as determined based on projections of the government as of January 27, 2020, as a result of such emergency.
  • Address negative economic impacts of such emergency (Note: TFG will continue tracking the development and interpretation of this provision). 
Administration of the Funds
  • The US Treasury will administer the funds.
  • There is no deadline on the use of the funds. Funds are available until expended.
  • Entities would have to provide a “certification” on the use or need of the funds to the Treasury.
  • Treasury must make the payments within 60 days.
  • For non-CDBG entitlement communities (less than 50,000 population), money flows through the State, which has 30 days to distribute after receipt from Treasury. Awards amounts are based on a per capita formula.
  • No mention of pensions.

Ways and Means Committee 
  • Expands the Child Tax Credit to $3,000 per child ($3,600 for children under 6).
  • Enhances the Earned Income Tax Credit for workers without children by nearly tripling the maximum credit and extending eligibility.
  • Extends temporary federal unemployment and benefits through August 29, 2021, and increases the weekly benefit from $300 to $400.
  • Direct payment of $1,400 per person.
  • Public employers would receive payroll tax credits for emergency paid family and sick leave paid after March 31, 2021. Based on reconciliation rules, those credits cannot be applied retroactively. 

Financial Services Committee 
Rental, Utility, and Home Security Assistance
  • $19.05 billion for emergency rental and utility assistance. (To supplement the $25 billion included in the FY 2021 Consolidated Appropriations Act.)
  • $5 billion for emergency Housing Choice Vouchers.
  • $200 million to support unassisted households living in USDA-subsidized properties.
  • $100 million for the NeighborWorks program to support housing counseling services that help renters, homeless individuals, people at risk of homelessness, and homeowners navigate their housing options and rights.
  • $5 billion for homelessness assistance to help communities provide shelter that facilitates social distances and supportive services. The bill would also enable state and local governments to finance supportive services, affordable housing, and the acquisition of non-congregate shelter (like hotels). These funds would be distributed through the HOME program formula.
  • $9.961 billion to states, territories, and tribes to address the ongoing needs of homeowners struggling to afford their housing due directly or indirectly to the impacts of the coronavirus pandemic by providing direct assistance with mortgage payments, property taxes, property insurance, utilities, and other housing related costs.
  • $39 million for USDA to continue to provide home loans that help low- and very-low income borrowers purchase, repair, and rehab housing in rural areas.
Defense Production Act
  • $10 billion for Defense Production Act to address medical supply/equipment shortages.
Support for Airline Industry Workers
  • $15 billion to support workers in the airline industry. 

Transportation Committee
FEMA’s Disaster Relief Fund
  • $50 billion for reimbursement to state, local, tribal, and territorial governments dealing with ongoing response and recovery activities from COVID-19, including vaccination efforts, deployment of the National Guard, providing personal protective equipment for critical public sector employees, and disinfecting activities in public facilities such as schools and courthouses.
Transit              
  • $30 billion to help assist with operating costs, including payroll and personal protective equipment.
Airports
  • $8 billion, including $800 million for airport concessionaires.
Economic Development Administration
  • $3 billion to provide economic adjustment assistance to help prevent, prepare for, and respond to economic injury caused by the COVID-19 pandemic.
Amtrak
  • $1.5 billion to recall and pay employees furloughed due to the COVID-19 pandemic through the end of FY 2021 and to restore daily long-distance service

Education and Labor Committee
Low Income Home Energy Assistance Program
  • $4.5 billion to help families cover the cost of home heating and cooling.
Education Stabilization Fund
  • $128.5 billion for grants to State Educational Agencies (SEA), with 90% allocated to local educational agencies (LEA), to be made in accordance with the same terms and conditions applicable to funds provided in fiscal year 2021 for the Elementary and Secondary School Emergency Relief Fund of the Education Stabilization Fund.
  • $39.5 billion for grants to institutions of higher education to be made in accordance with same terms and conditions applicable to funds provided in FY 2021 for Higher Education Emergency Relief Fund of the Education Stabilization Fund.        
Child Care and Development Block Grant Program
  • $39 billion to childcare providers who must provide financial relief for families, to the extent possible, and prioritize such relief for families struggling to cover tuition.

Agriculture Committee 
  • $500 million in Community Facility Program funds to help rural hospitals and local communities broaden access to COVID-19 vaccines & food assistance
  • $3.6 billion for a food distribution network to aid the poor and food businesses hurt by the pandemic, as well as $1 billion for debt relief and other tools for minority farmers.
  • Extends 15% SNAP benefit increase through September 30, 2021.

Small Business Committee 
  • Expands the Paycheck Protection Program to include additional non-profit entities as eligible recipients.
  • $25 billion for a new program at the SBA offering assistance to restaurants and other food and drinking establishments.
  • Establishes a Community Navigator Program to educate small businesses on SBA programs and provide technical assistance.
  • $1.25 billion in additional funding for the SBA Shuttered Venue Operators Grant Program.
  • $460 million for the disaster loan program.
  • $15 billion for the Targeted Economic Injury Disaster Loan Advance program. 

Energy and Commerce Committee 
Vaccines and Testing
  • $7.5 billion in funding for the CDC to prepare, promote, administer, monitor, and track COVID-19 vaccines. These activities can include distribution and administration of COVID-19 vaccines and ancillary supplies, and support for state, local, tribal, and territorial public health departments, among other activities.
  • $46 billion to detect, diagnose, trace, and monitor COVID-19 infections, and for other activities necessary to mitigate the spread of COVID-19. Specified activities include implementing a national strategy for testing, contact tracing, surveillance, and mitigation of COVID-19, and guiding state and local public health departments in their work to implement the national strategy.
  • $1.75 billion for CDC to conduct, expand, and improve activities to sequence genomes, identify mutations, and survey the circulation and transmission of viruses including SARS-CoV-2. These dollars could also be used to provide genomic sequencing support to state, local, tribal, or territorial public health departments.
  • $7.6 billion for efforts related to establishing, expanding, and sustaining a public health workforce, and to make awards to State, local, and territorial public health departments.
  • 1.8 billion to support the purchase, procurement, or distribution of COVID-19 tests and testing supplies, PPE, and vaccines for staff and individuals in congregate settings. It also allows HHS to provide technical assistance and award grants or cooperative agreements to states, localities, territories, and tribes to support strategies and activities to detect, diagnose, trace, or monitor COVID-19 in congregate settings, including prisons, jails, detention centers, long-term care facilities, psychiatric hospitals and residential treatment facilities, intermediate care facilities, and other settings providing care for individuals with disabilities.
Environmental Health and Ratepayer Protection
  • $50 million in funds to EPA for environmental justice grants and activities.
  • $4.5 billion for home energy assistance through the Low-Income Home Energy Assistance Program (also being considered by the Education and Labor Committee).
  • $500 million available to provide financial assistance to low income and other consumers adversely affected financially by COVID-19 to assist with payments for drinking water and wastewater expenses.
Distance Learning
  • $7.6 billion for an Emergency Connectivity Fund.
  • Requires the FCC to promulgate rules within 60 days of enactment for provisioning support to eligible schools and libraries to provide, among other things, eligible connected devices, internet service, and hotspots to students and teachers for internet use at home. In providing support under the covered regulations, the FCC shall reimburse 100% of the costs associated with the eligible equipment and services.

Veterans Affairs Committee
  • $272 million to mitigate the impacts of the pandemic on the benefits claims and appeals backlog.
  • $13.5 billion to provide health care services and related support to eligible veteran.
  • $400 million for up to 12 months of retraining assistance for veterans who are unemployed due to COVID-19.
  • Allows VA to waive copays for treatment provided to eligible veterans, beginning April 6, 2020 when VA first paused medical billing, through September 30, 2021. This section also authorizes VA to reimburse those veterans who already submitted payments for their care during this period.  

Three House committee have yet to schedule their markups: Natural Resources Committee, Foreign Affairs Committee, and Science Space and Technology Committee. We will provide additional information and a complete overview of the package next week after the markups are complete.

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

Administration. CDC recommends double masking. Experiments assessed two ways of improving the fit of medical procedure masks: (1) fitting a cloth mask over a medical procedure mask, and (2) knotting the ear loops of a medical procedure mask and then tucking in and flattening the extra material close to the face. Each modification substantially improved source control and reduced wearer exposure.

CDC reports that states with statewide mask mandates experienced a decline in weekly COVID-19–associated hospitalization growth rates by up to 5.5 percentage points for adults aged 18–64 years after mandate implementation, compared with growth rates during the 4 weeks preceding implementation of the mandate.

EPA announced certain copper alloys provide long-term effectiveness against viruses, including SARS-CoV-2, the virus that causes COVID-19. Antimicrobial copper alloys can be manufactured into a wide variety of surfaces, including doorknobs and handles.
Industry & Advocacy
NACO, NLC, and the U.S. Conference of Mayor issued a joint statement welcoming the House Oversight and Reform Committee’s State and Local Coronavirus Fiscal Recovery Fund legislation to be considered as part of the comprehensive COVID-19 federal package. The legislation includes $350 billion in critical aid to state, local, and territorial governments. 

Vaccine News

The Biden Administration will boost weekly vaccine shipments to states to 11 million (from 10.5 million) and launch a vaccination program through community health centers in every state and territory.

A World Health Organization panel recommended the AstraZeneca and Oxford University COVID-19 vaccine for emergency use for those 18 and older.

The FDA gave an emergency use authorization for a new combination antibody drug from Eli Lilly that the company says can treat mild and moderate cases of the coronavirus. 

Johnson & Johnson CEO Alex Gorsky told CNBC this week that individuals may need the coronavirus vaccine annually in years to come, much like the seasonal flu shot.

CDC announced that vaccinated persons with an exposure to someone with suspected or confirmed COVID-19 are not required to quarantine if they are fully vaccinated, are within 3 months following receipt of the last dose in the series, and have remained asymptomatic since the current COVID-19 exposure.

NIH reported that longstanding obstacles to include pregnant and lactating people in clinical research have led to this population now deciding whether or not to receive a SARS-CoV-2 vaccine without the benefit of scientific evidence.

AstraZeneca announced the production of vaccines combating new COVID-19 variants may take at least six months. The announcement comes after recent data has shown the current AstraZeneca vaccine offers ‘minimal protection’ against a COVID-19 variant that was first discovered in South Africa, according to The Hill
Webinars, Events and Resources
NACo & CVS Sponsored COVID-19 Testing Solution
February 16, 4:00 PM ET

CRS Reports of interest:
For more information please contact Mike Miller: mmiller@tfgnet.com (707) 224-8648