The Senate is expected to begin consideration today of the $1.9 trillion American Rescue Plan Act of 2021 (H.R. 1319) after the House passed the measure early Saturday morning by a vote of 219-212. The Senate originally planned to commence consideration of the bill last night but lacked an official cost estimate on the latest version of the bill, which has been trimmed down from the House-passed version to meet the topline number set by the FY 2021 budget resolution.
The new Senate language, which TFG has been able to review, makes several changes to the House-passed version of the bill, including changes to the $350 billion Coronavirus State and Local Fiscal Recovery Funds. Total funding for states would remain the same at $195.3 billion, but direct aid for local governments would be cut by $10 billion to support a new Coronavirus Capital Projects Fund, for which only states, territories, and tribes are eligible.
To accommodate this $10 billion cut, the amount for counties would be cut to $60.1 billion (from $65.1 billion in the House bill); the amount for cities/towns with populations over 50,000 would be cut to $42.07 billion (from $45.57 billion in the House bill); and the amount for cities/towns with populations under 50,000 would be cut to $18.03 billion (from $19.53 billion in the House bill). Updated allocation tables detailing the amounts each state, territory, tribe, and local government is expected to receive have not yet been released.
There are also changes to the allowable uses of the funds. The new allowable uses are:
- to respond to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19) or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
- for the provision of government services to the extent of the reduction in revenue of such State, territory, or Tribal government due to such emergency; or
- to make necessary investments in water, sewer, or broadband infrastructure.
Additionally, states and localities would have until December 31, 2024, to spend their allocations. In the House-passed bill, funds were available until expended.
The Senate bill also requires the funds to be allocated in two tranches: 50 percent in the First Tranche, with the Second Tranche distributed “not earlier than 12 months after the date on which the First Tranche Amount is paid to the city, State, or county.”
Like the House-passed bill, a community with a population of less than 50,0000 cannot receive an amount greater than 75 percent of its annual budget. In the House-passed bill, any excess was then returned to the state and redistributed to other non-entitlement communities. In the Senate bill, that excess goes back to the Treasury Department.
The Senate bill also says recipients must provide periodic reports detailing how the money is being/has been used. The House bill is silent on reporting.
Additional changes to the Coronavirus State and Local Fiscal Recovery Funds are possible as the bill moves through the Senate process.
Senate consideration could take several days, potentially extending into the weekend. House Majority Leader Steny Hoyer (D-MD) said the House could then take up the Senate’s revised bill early next week. However, if major changes are made to the bill that the House does not accept, the House and Senate may be forced to convene a conference committee to negotiate final bill text, which could delay final passage of the bill. The goal for Democratic leaders is still to pass the bill by March 14, when existing supplemental unemployment benefits are set to expire.
Capitol Hill. On March 1, Congressional leaders wrote a letter to the Biden Administration urging the CDC and OSHA to update ventilation and respiratory protection guidance and standards to address aerosol transmission of the COVID-19 virus. In the letter, the leaders praised the Administration’s science-based approach to defeating the virus but noted that recent expert findings show the CDC’s existing guidance may not go far enough to protect workers who face the greatest risk of exposure to aerosol transmission of COVID-19. The Members also suggested that – given the increased availability of better respiratory protection for health care employees – the CDC should consider updating its guidance to reflect the most recent science and that the Defense Production Act should be invoked to address any future shortages as improved respiratory protection is needed for other at-risk workers.
House Democrats are launching an investigation into concierge health provider One Medical following reports the company intentionally distributed limited coronavirus vaccines to people with connections to its top executives. The House Oversight Select Subcommittee on the Coronavirus Crisis, led by Chairman Jim Clyburn (D-SC), sent a letter to One Medical on March 1 demanding documents and information related to its vaccination practices by March 15.
On March 3, Chairman Clyburn sent a letter to Treasury Secretary Janet Yellen and Acting SBA Administrator Tami Perriello regarding the Select Subcommittee on the Coronavirus Crisis’ investigation into the disbursement of funds under the Paycheck Protection Program (PPP).
On March 3, 14 Democratic Senators, led by Sens. Jeff Merkley (D-OR) and Tammy Duckworth (D-IL) sent a letter to Senate Majority Leader Chuck Schumer (D-NY) urging him to include safeguards in the upcoming coronavirus relief package “to protect the American people from losing access to critical utilities—including power, heat, water and internet services—during the pandemic.”
On March 1, Sens. Chris Van Hollen (D-MD) and Martin Heinrich (D-NM) sent a letter to White House Coronavirus Task Force Response Coordinator Jeff Zients urging the Biden Administration to consider a new COVID-19 vaccination strategy that prioritizes first doses in order to better protect Americans from highly transmissible variants of the disease.
On March 2, the House Transportation and Infrastructure (T&I) Subcommittee on Aviation held a hearing titled “COVID-19’s Effects on U.S. Aviation and the Flight Path to Recovery.” T&I Chairman Peter DeFazio (D-OR) indicated that the latest proposed round of federal payroll support assistance to airlines could be the last. The airline industry is expecting an additional $14 billion in payroll support as a part of the $1.9 trillion COVID relief package moving through Congress.
On March 2, the House Energy and Commerce Subcommittee on Health held a hearing titled “The Future of Telehealth: How COVID-19 is Changing the Delivery of Virtual Care.” The hearing focused on the value of telehealth, ways to strengthen program integrity and prevent potential bad actors from taking advantage of the system and consumers, and how to ensure equitable access to telehealth services.
Administration. The Federal Reserve’s Beige Book notes economic activity expanded modestly from January to mid-February for most Federal Reserve Districts. Most businesses remain optimistic regarding the next 6-12 months as COVID-19 vaccines become more widely distributed. Reports on consumer spending and auto sales were mixed. Although a few Districts reported slight improvements in travel and tourism activity, overall conditions in the leisure and hospitality sector continued to be restrained by ongoing COVID-19 restrictions. Despite challenges from supply chain disruptions, overall manufacturing activity for most Districts increased moderately from the previous report.
DOL issued guidance to state unemployment insurance agencies that expands the number of instances in which workers may be eligible for Pandemic Unemployment Assistance. For example, unemployment benefits eligibility now covers those who refuse to return to work or declined a job offer because the worksite is not following coronavirus safety protocols. Also, DOL’s Inspector General reports that a 15% increase in OSHA-related complaints by workers, coupled with 50% fewer inspections due to the pandemic, raise the concern that workplace hazards are going unidentified and unabated.
IRS issued guidance for employers claiming the employee retention credit under coronavirus relief law. The IRS also outlined how those eligible for Economic Impact Payments but did not receive their payment – either fully or partially – may be eligible for the Recovery Rebate Credit on their 2020 income tax return.
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A mass vaccination campaign in Israel that targeted older residents led to a decrease in the number of coronavirus cases requiring patients to go on a ventilator. Before the vaccination campaign started, about six times as many patients over the age of 70 required ventilation to assist breathing as those under the age of 50.
The Ad Council and COVID Collaborative announced their COVID-19 vaccine education initiative, “It’s Up to You.” The campaign represents one of the largest public education efforts in US history.
The US Conference of Mayors published a timeline of requests for local government financial assistance since the beginning of the pandemic, and called on Congress to deliver direct financial aid to cities through the American Rescue Plan.
Vaccine News
Johnson & Johnson will send its entire 3.9 million dose supply of the one-dose vaccine to vaccination centers this weekend. The vaccines are authorized by the FDA to be “distributed evenly” so that communities do not have access to only one type of vaccine.
Two studies from the University College London and Public Health England found that a single dose of the Pfizer-BioNTech coronavirus vaccine may offer significant protection for people who have already been infected with COVID-19.
President Biden called on all states to vaccinate teachers by the end of March and announced the US will have vaccines for all adults by the end of May (The Hill).
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