Federal Responses to COVID-19: UPDATED APRIL 27
Congress and the Administration have been working on a number of measures to curb the effects of the ongoing spread of Coronavirus across the country. Below you will find a high level summary of the most significant measures taken to date.
The Trump Administration declared a national state of emergency on March 13, and has announced the following measures:
Travel restrictions to halt foreign nationals from entering the country from certain European countries (March 11)
Guidelines were issued that gatherings of 10 or more people are to be avoided for at least the next 15 days (March 16)
The Small Business Administration was instructed through existing authority to provide loans to businesses affected by the pandemic
The Department of the Treasury has been instructed to defer tax payments for certain individuals and businesses
The Coronavirus Preparedness and Response Supplemental Appropriations Act was signed by President Trump on March 6, and key provisions include:
$3.1 billion for the Public Health and Social Services Emergency Fund
$2.2 billion for the Centers for Disease Control and Prevention (CDC)
$300 million for purchasing diagnostics, therapeutics, and vaccines
$61 million to the Food and Drug Administration (FDA) to advance research and development into countermeasures and vaccines
The House passed the Families First Coronavirus Response Act (H.R. 6201) on March 14. The House was able to pass the technical corrections package on March 16 by unanimous consent. The Senate passed and the president signed this second package on March 18. The package includes:
Free testing for COVID-19
A temporary increase in the Medicaid federal medical assistance percentage
$1 billion in funding for unemployment insurance grants
An expansion of the Family and Medical Leave Act for qualifying events
A requirement for employers to provide employees two weeks of paid sick leave, paid at the employee’s regular rate, to quarantine or seek a diagnosis or preventive care for coronavirus
Establishment of tax credits for paid sick and paid family and medical leave taken for coronavirus-related reasons
On March 19, Senate Majority Leader Mitch McConnell (R-KY) unveiled the Senate Republican’s third package proposal, The Coronavirus Aid Relief and Economic Security Act (CARES Act), which was endorsed by the White House. The CARES Act consists of four main parts:
Direct assistance payments granted to qualified Americans of up to $1,200. Married couples could receive $2,400 and families with children could receive $500 per child
Provides rapid relief for small businesses and their workers. This includes provisions to grant small businesses $300 billion in federally guaranteed loans
Stabilizes the economy and creates jobs by providing $200 billion in financial support to hard-hit industries such as airlines
Supports health professionals and patients by temporarily freezing the sequester's Medicare payment cut, along with imposing a separate 15 percent Medicare rate bump for coronavirus patients. Telehealth restrictions for Medicare patients would also temporarily be eased. Additionally, Community health centers would receive $1.32 billion to fund their care for vulnerable patients
This version of the CARES Act did not have support from Democrats. As a result, Speaker of the House Nancy Pelosi (D-CA) voiced her concerns over the CARES Act and introduced her own $2.5 trillion economic stimulus package in the House on March 23. Since negotiations in the Senate were ongoing, the House proposal was a values statement on what Democrats were seeking from any third package. The Take Responsibility for Workers and Families Act focuses on:
Further assistance to small businesses with $500 billion in grants and interest-free loans
Strengthening unemployment insurance to assist individuals who have been laid off during this crisis, and bolstering SNAP benefits
Increased Medicaid funding, along with funding for treatment and personal protective equipment for hospitals and other health institutions
Direct assistance payments of $1,500 per individual, up to $7,500 for a family of five, and strengthening the Child Tax Credit and the Earned Income Tax Credit
$60 billion for schools and universities, and student borrowers will be aided
$2 billion to bolster the FCC’s E-Rate subsidy program, ensuring that schools and libraries are able to stay connected
Measures to ensure that states are able to carry out this year’s election
Secretary Mnuchin, Leader McConnell, and Leader Schumer struck a deal on a $2 trillion, third package in the early morning hours of March 25. This new iteration of the CARES Act includes the following:
Direct assistance payments of $1,200 for qualifying middle and low income individuals
4 months unemployment insurance
$150 billion for states and local governments
$100 billion for hospitals
A $500 billion corporate relief program housed by the Treasury Department and overseen by an inspector general
$10 billion in small business grants of up to $10,000 as well as assistance for small businesses with existing loans through the Small Business Administration
$30 billion in emergency education funding
$25 billion in transit funding
$10 billion for Indian Health Services and tribal programs
$30 billion for FEMA’s disaster fund
A retention tax credit for employers and income tax exclusion for individuals who are receiving student loan repayment assistance from their employer
The Senate passed this legislation just before midnight on March 25, and the House passed it two days later on March 27. The president signed it immediately and began the work of implementation.
The legislation some refer to as CARES 2.0 or 3.5, H.R. 266, passed the Senate by unanimous consent on April 21 and the House on April 23, and was signed by President Trump on April 24. This $484 billion measure includes:
$321 billion for the small business lending program
$60 billion of which is specifically for loans made by credit unions and community-based banks
$60 billion for disaster and emergency loans
$75 billion for hospitals to cover increased expenses and lost revenue
$25 billion for increased testing
In response to this pandemic, nearly $3 trillion across four different bills have now been signed into law. At this time, Congress is set to return on May 4. Members could be called back for emergency votes, but will otherwise work on upcoming packages remotely.
Speaker Pelosi has said that the CARES Act "is not going to be the last bill…this bill is about mitigation for the damage that is being done…the next phase will be recovery." Discussion of another massive spending bill has already begun in earnest. Senate Appropriations Chair Richard Shelby (R-AL), Senate Environment and Public Works Chair John Barrasso (R-WY), and others continue to reiterate their desire to include in it a major infrastructure package to boost the economy in the long run. For more insight into what may be included in future packages, read our related insights.
The situation remains incredibly fluid. Anticipate periodic updates to this post as we share additional tidbits in real time. Plurus Strategies will continue to monitor and share new and rapidly evolving developments.