In Washington

• President Trump is demanding that Congress include a payroll tax cut as part of the next coronavirus stimulus package. The proposal has failed repeatedly to gain traction among both Democrats and Republicans for the past year and will add a hurdle to negotiations expected to start next week on a package. Meanwhile, Senate Majority Leader Mitch McConnell (R-KY) insists that the Senate will not pass the next package without liability protections concerning COVID-19. McConnell and Sen. John Cornyn (R-TX) are putting the final touches on their draft plan that protects schools, colleges, frontline workers, churches, and businesses. In addition, the proposal would limit liability for products that meet certain FDA requirements, including types of protective gear.
• White House Press Secretary Kayleigh McEnany said Thursday, "The President has said unmistakably that he wants schools to open... The science should not stand in the way of this.” President Trump is demanding that schools must offer a full schedule of in-person classes while only one in four American’s think it is safe to open public schools this fall. McEnany later said, "The science is on our side here. We encourage localities and states to just simply follow the science, open our schools. It's very damaging to our children."
• To ensure the “safety and well-being of all” the Democratic Party is urging lawmakers and delegates to not attend the Democratic National Convention in August amid the continuing surge of COVID-19 cases in Milwaukee and across the U.S. Caucus and Council meetings will be held virtually leaving only Vice President Joe Biden’s and his vice presidential nominee’s addresses to be delivered on site.
• The Department of Health and Human Services (HHS) says based on knowledge of the virus, they are advising against repeat tests of confirmed coronavirus patients. Assistant Secretary for Health Brett Giroir said experts now know that coronavirus patients are no longer contagious after 10 days, with three days of no symptoms. The guidance comes as increasing cases threaten to overwhelm labs again, with turnaround times continuing to lengthen. But confusion still exists around how long the virus can live inside an infected person given that many doctors are reporting patients that test positive for the virus months after recovering, while other patients report lingering health effects months after contracting the disease.
• The House Education and Labor Committee says the White House refused to allow the CDC to testify at a hearing next week on reopening schools. The CDC also has delayed its new guidance for schools saying it will not come until later this month, even as some schools are approaching the first day of school.
• A Washington Post-ABC poll finds President Trump continues to face increased disapproval and widespread distrust on coronavirus. The poll shows 38 percent of Americans approve of his handling of the outbreak, down from 46 percent in May and 51 percent in March. Sixty percent disapprove, up from 53 percent in May and 45 percent in March. More than 6 in 10 say they do not trust what the President says about the outbreak, including 2 in 3 political independents and nearly 3 in 10 Republicans.
• Treasury Secretary Steven Mnuchin suggested today that there may be potential changes to the PPP loan program in the next coronavirus relief package. In his opening statement at a House Small Business Committee oversight hearing on the agency's pandemic programs Mnuchin said. “I look forward to continuing our bipartisan efforts. A next phase of relief should extend the PPP, but on a more targeted basis for smaller companies and those that have been especially hard hit by the pandemic, such as restaurants, hotels, and other travel and hospitality businesses.”
• The Federal Reserve announced it has opened its Main Street Lending Program to nonprofit organizations, expanding the existing program intended to help businesses weather the COVID-19 pandemic. The addition of two new credit facilities to the program will facilitate loans to organizations like educational institutions, hospitals, and social service groups with at least 10 employees. Nonprofit organizations will be able to obtain loans of at least US$250,000 and up to US$300 million. Treasury Secretary Mnuchin released a statement about being pleased that the program now includes options to support lending to eligible nonprofits.

In the News

• The U.S. continues to report new records with more than 77,000 new coronavirus cases yesterday — the highest daily jump in cases so far. The U.S. has become the world’s coronavirus hot spot, with 3,576,000 confirmed infections and 138,360 fatalities.
• The U.S. National Security Agency and its British and Canadian counterparts are alleging that Russia is trying to steal information from researchers working on a coronavirus vaccine in the three countries. The Western intelligence agencies allege that the hacking group known as APT29, “Cozy Bear” or “The Dukes,” which is widely believed to operate as part of Russia’s security services, is conducting an “ongoing” cyber campaign to steal intellectual property about a potential Covid-19 vaccine. Russia has denied the accusation.
• Retail sales jumped 7.5 percent in June, a signal that Americans started to spend again as states eased lockdowns and people received extra income from the government.
• New data released by the Bureau of Labor Statistics show that food inflation has arrived in the U.S. Full-service restaurant prices rose a record 0.9 percent in June from a month earlier. At the same time, home cooking grew costlier. Grocery prices rose 0.7 percent from the prior month and 5.6 percent from a year ago, the largest increase since 2011.
• The Centers for Disease Control and Prevention (CDC) on Thursday extended its ban on passenger cruising from U.S. ports through 30 September, citing “ongoing” coronavirus outbreaks aboard ships. The Cruise Line International Association, which represents the largest cruise lines in the world, announced last month that its members had agreed to suspend operations until 15 September.
• American Airlines and JetBlue Airways said on Thursday they were forming a strategic partnership to boost flying options in New York and Boston and create what executives called a “growth engine” to recover from the COVID-19 pandemic.

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