On Monday, May 10, the U.S. Department of the Treasury released a 151-page Interim Final Rule specifying all of the eligible uses of the $350 billion Coronavirus State and Local Fiscal Recovery Funds program.
Eligible state, territorial, metropolitan city, county, and Tribal governments may now request their allocation of Coronavirus State and Local Fiscal Recovery Funds through the Treasury Submission Portal. Non-entitlement units (generally local governments with populations under 50,000) should not request their allocation through the Treasury Submission Portal; non-entitlement units will receive their funding from their applicable state government. More information for non-entitlement units can be found here.
The Interim Final Rules expands on the four main eligible uses that are specified in the American Rescue Plan Act of 2021 (P.L. 117-2), which are to:
- Respond to the COVID-19 public health emergency and its negative economic impacts;
- Provide premium pay to essential workers or grants to employers with essential workers;
- Replace lost, delayed, or decreased state and local government revenue; and
- Make necessary investments in water, sewer, or broadband infrastructure.
Along with the rule, the Treasury Department also released the following documents of interest to all eligible entities:
For an update on the infrastructure package and the status of negotiations between the White House and Congress, please see the May 12 edition of TFG’s Transportation Notes.
As of this morning, the CDC is planning to ease indoor mask-wearing guidance for fully vaccinated people, allowing them to safely stop wearing masks inside most places. The new guidance will call for wearing masks in crowded indoor settings like buses, planes, hospitals, prisons and homeless shelters, but could ease restrictions for reopening workplaces and schools. The final guidance is expected to be released by the CDC today, May 13.
Capitol Hill. On May 11, the Senate Health, Education, Labor, and Pensions Committee held a hearing on “An Update from Federal Officials on Efforts to Combat COVID-19,” with Dr. Anthony Fauci (Director of the National Institute of Allergy and Infectious Diseases); Dr. Rochelle Walensky (Director of the CDC); Dr. David Kessler (Chief Science Officer for COVID Response at HHS); and Dr. Peter Marks (Director of the FDA’s Center for Biologics Evaluation and Research). Asked what she would say to parents who are considering getting their kids vaccinated now, CDC Director Walensky, while acknowledging some parents may not want to be first in line, said she would encourage all parents to get their children vaccinated and for children to ask for the shot.
On May 12, the House Science Subcommittee on Investigations and Oversight held a hearing on “COVID-19 Variants and Evolving Research Needs.” Witnesses included Dr. Salim Abdool Karim (Director of the Centre for the AIDS Program of Research in South Africa [CAPRISA]); Dr. Nathan Grubaugh (Assistant Professor of Epidemiology, Yale School of Public Health); Dr. Stephen Streiffer (Deputy Laboratory Director for Science and Technology, Argonne National Laboratory); and Dr. Caitlin Rivers (Senior Scholar, Johns Hopkins Center for Health Security). The hearing explored what additional tools are needed to detect, treat, and forecast emerging variants of the coronavirus.
On May 12, the House Energy and Commerce Subcommittee on Health held a hearing with Health and Human Services (HHS) Secretary Xavier Becerra to hear testimony regarding HHS’ FY2022 discretionary budget request. Secretary Becerra stated that “COVID-19 has shed light on how health inequities and insufficient Federal funding can leave communities vulnerable to crises. The President’s discretionary request invests in America, demonstrates a conscious effort to address racial disparities in health care, tackles the opioid crisis, and puts us on a better footing to take on the next public health crisis.”
On May 12, the Senate Finance Subcommittee on Health Care held a hearing on “The COVID-19 Pandemic and Beyond: Improving Mental Health and Addiction Services in Our Communities.” Witnesses included public health officials from North Carolina, Nevada, Montana, and Michigan.
On May 10, the Congressional Budget Office (CBO) released its Monthly Budget Review for April 2021, which estimates that the federal budget deficit was $1.9 trillion in the first seven months of fiscal year 2021 — $449 billion more than the deficit recorded during the same period last year. Outlays were 22 percent higher and revenues were 16 percent higher from October through April than during the same period in fiscal year 2020. Most of the increases in 2021 arose from spending for refundable tax credits (particularly recovery rebates), unemployment compensation, and the Small Business Administration’s Paycheck Protection Program.
On May 7, House Oversight Select Subcommittee on the Coronavirus Crisis Chair Jim Clyburn (D-SC) sent a letter to Federal Reserve Chair Jerome Powell regarding the Fed’s implementation of the Main Street Lending Program and the Municipal Liquidity Facility, two programs designed to provide relief to small and mid-sized businesses and state and local governments. The letter requests documents and information regarding whether these programs helped reduce unemployment and what additional steps the Fed is taking to improve the health of the nation’s recovering economy and identify lessons learned for future relief efforts.
Administration. Treasury updated its previously issued Emergency Rental Assistance FAQs regarding the first round of ERA payments and to add guidance regarding the second round. At least 90 percent of awarded funds must be used for direct financial assistance, including rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, and other expenses related to housing. Remaining funds are available for housing stability services, including case management and other services intended to keep households stably housed.
CDC updated its Scientific Brief noting that although infections through inhalation at distances greater than six feet from an infectious source are less likely than at closer distances, the phenomenon has been repeatedly documented under certain preventable circumstances. These transmission events have involved the presence of an infectious person exhaling virus indoors for an extended time leading to virus concentrations in the air space sufficient to transmit infections to people more than 6 feet away, and in some cases to people who have passed through that space soon after the infectious person left.
A White House fact sheet outlines steps the Administration is taking to help Americans return to work, including assistance to child care providers, expanding reemployment and workforce development services, and Fiscal Recovery Funds to assist state and local governments bring public employees back to work. SBA announced the Restaurant Revitalization Program has received more than 147,000 applications from women, veterans, and socially and economically disadvantaged business owners, requesting a total of $29 billion in relief funds. As of May 12, $2.7 billion have been distributed to 21,000 restaurants.
The Treasury Department released guidelines for the Coronavirus Relief for Transportation Services Grant Program (CERTS). CERTS primarily covers payroll costs for eligible motorcoach companies, school bus companies, passenger vessel companies, and pilotage companies that have experienced annual revenue losses of 25 percent or more as result of COVID-19.
The White House announced a $7.4 billion investment under ARPA to recruit and hire public health workers to respond to the pandemic and prepare for future public health challenges. The funding will expand the public health workforce, creating tens of thousands of jobs to support vaccinations, testing, contact tracing, and community outreach, and strengthen America’s future public health infrastructure.
HHS is rolling out the Maternal, Infant, and Early Childhood Home Visiting (MIECHV) Program supporting the delivery of coordinated home visiting services to children and families living in communities at risk for poor maternal and child health outcomes. The program delivers services and emergency supplies, such as diapers, food, water, and hand sanitizers. Families who cannot access home visiting services due to the pandemic will be provided technology to participate in virtual home visits. Funds will also be used to train home visitors on emergency preparedness and response planning for families and on how to safely conduct virtual intimate partner violence screenings.
Eligible households may now enroll in the Emergency Broadband Benefit (EBB) Program to receive a monthly discount off the cost of broadband service from an approved provider. The enrollment period opened on May 12 and participants can enroll through an approved provider or by visiting the program portal. The Federal Communications Commission created an EBB outreach toolkit for local governments and community partners.
The Department of Education (ED) announced more than $36 billion in emergency grants for postsecondary education. These grants will help over 5,000 institutions of higher education provide emergency financial aid to millions of students and ensure learning continues during the COVID-19 national emergency.
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McDonald’s is partnering with the Biden Administration to promote getting vaccinated against COVID-19. Beginning in July, McDonald’s will add stickers to its McCafe cups directing customers to vaccines.gov.
Uber and Lyft will offer free rides to vaccination sites until July 4 as part of a new White House partnership. This partnership will eliminate potential barriers and help achieve the president’s goal of vaccinating 70% of the US population by July 4.
The European Union is expecting to finish work soon on a COVID-19 certificate that could allow citizens to travel more easily this summer in the 27-nation bloc. The pass would allow those vaccinated, recovering from COVID-19, or with negative test results to cross borders.
Vaccine News
Gary Disbrow, director of the Biomedical Advanced Research and Development Authority (BARDA), said Americans will need annual booster shots of the coronavirus vaccines for the foreseeable future. “Right now, we do feel that we will potentially need a boost in the fall for those people, especially those above the age of 65, where you do see a more dramatic waning of immunity than you do in younger people.” BARDA is working with the FDA to determine if annual boosters are the next step in protecting against potential strains.
Pfizer and BioNTech requested full FDA approval for their COVID-19 vaccine after having emergency use authorization for almost five months. With the FDA’s full approval, the Pfizer-BioNTech vaccine could be given to patients after the public health emergency is declared over. The Pfizer-BioNTech vaccine would be the first in the U.S. with the FDA's full approval.
The World Health Organization authorized China’s Sinopharm COVID-19 vaccine for emergency use, expressing hope that it will boost global access to doses. WHO said the efficacy for the vaccine is estimated at 79 percent, though there are limitations in the data for people over 60 years old, because few in that age group were enrolled. The two-shot vaccine is relatively easy to store, which raises the hope that it can be used in hard-to-reach areas.
All Department of Veterans Affairs facilities and clinics that administer COVID-19 vaccines are accepting walk-ins for eligible Veterans, spouses and caregivers. This walk-in service ensures all Veterans enrolled in VA health care and those authorized under the SAVE LIVES Act have an opportunity to receive a COVID-19 vaccination.
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