Coronavirus: The Hill and the Headlines – COVID-19 D.C. Update – May 2020 #6

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[author: Shelley Castle]

Your guide to the latest Hill developments, news narratives, and media headlines provided by the Hogan Lovells Government Relations and Public Affairs team.

In Washington:

  • The House schedule is still up in the air and there is no new information on when Democrats will release their draft of the new coronavirus stimulus legislation. Members have been advised that the House may meet this week, but no earlier than Friday, May 15. House Republicans have yet to see or been asked to participate in the legislative drafting. Democrats want to use the bill to lay down a marker and increase the pressure on Republicans to pass another COVID-19 stimulus package. According to Axios, the bill includes $1 trillion for state and local governments, more money for hospitals and COVID-19 testing, $25 billion to keep the U.S. Postal Service afloat, expanded nutritional benefits, Medicaid funding and unemployment insurance and another round of direct payments to Americans.
  • On Tuesday May 12, the Senate Health, Education, Labor & Pensions Committee (HELP) will hold a remote hearing entitled: “COVID-19: Safely Getting Back to Work and Back to School.” Witnesses include Dr. Anthony Fauci, Dr. Robert Redfield, Dr. Stephen Hahn, and Dr. Brett Giroir.” On Thursday, May 14, the Subcommittee on Health of the House Energy and Commerce Committee will be having a hearing entitled, “Protecting Scientific Integrity in the COVID-19 Response.” Dr. Rick Bright will be testifying, a top public health official who says he was removed from his post for pushing back against Trump’s promotion of an unverified coronavirus treatment. Bright’s lawyers say the Office of Special Counsel, which is investigating the whistleblower complaint, has determined that there is reason to believe he had been removed as retaliation.
  • The White House advisers continue to message that another stimulus package is “premature” given the $9 trillion of aid already passed and still not been dispersed. White House economic advisor Kevin Hasset told CNN’s State of the Union, “We think that we have a little moment, the luxury of a moment, to learn about what’s going on, so that the next step that we take can be prudent.” Larry Kudlow repeated similar statements on ABC News’ This Week. Kudlow did note that he and Hasset have been “informally” discussing a fourth package with lawmakers and believes there are some areas where there could be agreements on the needs for additional funding.
  • The Federal Bureau of Investigation and the Department of Homeland Security are preparing to accuse Chinese hackers of trying to steal U.S. research on a COVID-19 vaccine, The New York Times reports, citing officials. The accusation is expected to be part of a broader deterrent strategy that includes the United States Cyber Command and the National Security Agency, which are authorized to mount proportional counterattacks.
  • Three top health officials are self-isolating after two White House staffers tested positive for COVID-19. Vice President Mike Pence’s press secretary was among those who tested positive, though Pence is not planning to enter self-quarantine and planned to be at the White House Monday, according to his office.
  • Treasury Secretary Steven Mnuchin told CNBC the administration is unfazed with the federal government’s $3 trillion coronavirus aid spending thanks to the nation’s very low-interest rates. Mnuchin said the Treasury would stop short of an actual refinancing where it bought back existing debt. He said the White House wants to seize the opportunity afforded by low-interest rates in a sort-of “refinancing” without repurchasing existing Treasury notes from the marketplace. On Fox News Sunday, Mnuchin said that unemployment could be as high as 25 percent. “The reported numbers are probably gonna get worse before they get better,” he said.
  • The additional $310 billion for the Paycheck Protection Program, relaunched on April 27, reached $175.7 billion in approvals in five days, but the Small Business Administration has reported only $11 billion processed since then. Groups representing small businesses and lenders pointed to several possible factors to the slowdown, including the processing of a backlog of applications from the first round, the removal of duplicates from borrowers who applied at more than one bank, and the wariness of some firms applying after the Trump administration warned that companies that take loans and don’t need them could face criminal prosecution.
  • Former President Barack Obama gave rare commentary and criticism of the administration’s handling of the coronavirus pandemic, calling it an “absolutely chaotic disaster.” In a leaked tape of a private web call, Obama told 3,000 members of the Obama Alumni Association, Obama blamed the current long-term trends of tribalism and partisan divisions as part of the reason why the response to the crisis has been so “anemic and spotty.”
  • In a tweet on Saturday, President Trump said that the country will start buying up to $3 billion in surplus dairy products, meat, and fresh produce from U.S. farmers starting next week. The program is part of the $2 trillion aid package passed by Congress in March to support the economy during the pandemic.
  • Late Friday, the Food and Drug Administration approved a new antigen test, created by San Diego-based Quidel, that could help screen people infected with COVID-19. The move could mark a breakthrough in screening for the virus as state and local governments ease lockdown orders and businesses begin reopening across the nation. Former FDA Commissioner Scott Gottlieb yesterday called the new Quidel test a “game-changer.” He told CBS yesterday that each test will probably cost about $5, with results available within minutes.
  • The federal government is sending Gilead Science’s remdesivir to Connecticut, Illinois, Iowa, Maryland, Michigan, and New Jersey after doctors raised questions about the federal allocation of the drug to treat patients. State health agencies, rather than the federal government, will distribute doses to the hospitals, the Health and Human Services Department said Saturday.

In the News:

  • Nearly 80,000 people have died from coronavirus across the U.S. The Institute for Health Metrics and Evaluation (IHME) at the University of Washington now forecasts more than 137,000 Americans will die by early August, up from its previous forecast of 134,000 deaths. That rise is largely due to Americans moving around more, IHME Director Dr. Christopher Murray said in a news release.
  • Oil prices swung between gains and losses on Monday, even as Saudi Arabia ordered its state-owned oil company Aramco to slash production by an additional 1 million barrels per day to ease a global supply glut that has ravaged prices this year.
  • According to new polling, most Americans still do not feel comfortable with their states reopening salons, gyms, movie theaters, and other businesses.
  • The Food and Drug Administration (FDA) granted emergency use authorization for Abbott Laboratories’ new coronavirus antibody test, the company announced Monday. Abbott said it plans to ship nearly 30 million tests this month and will have the capacity to ship 60 million tests in June. The tests can indicate whether a person has had the virus and was either asymptomatic or recovered.
  • The Republican National Committee has asked the federal government to provide Personal Protective Equipment (PPE) for conventions this summer. RNC Chairwoman Ronna McDaniel says the gear is needed for both Democratic and Republican conventions because they are “national security” events.
  • Twitter is pledging $10 million to help U.S. prisons battle the ongoing coronavirus pandemic. CEO Jack Dorsey says the donation to REFORM Alliance, a criminal justice advocacy group, will buy 10 million face masks and other personal protective equipment for people who are incarcerated, as well as other prison staff.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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