[co-authors: Alexander Monie, Policy Advisor, Taylor Daly, Public Policy Specialist]
Pelosi and McConnell Both Look to Bipartisan Phase 4 Legislation
Congress now likely remains adjourned until April 20 for the safety of both members and congressional staff, but discussions have already begun on a Phase 4 stimulus bill. As unemployment numbers climbed this week, House Speaker Nancy Pelosi (D-CA) recognized that a Phase 4 package would expand upon the recently enacted Phase 3 package in place of pursuing broad Democratic priorities.
Speaker Pelosi announced this week that she would establish a new bipartisan House Select Coronavirus Oversight Committee to oversee the Administration’s distribution of the $2 trillion COVID-19 economic relief funds. The committee, which will be led by House Majority Whip Jim Clyburn (D-SC), would have subpoena powers and the ability to oversee any future legislation related to the virus. Speaker Pelosi’s announcement faced resistance from House Republicans who have argued that the committee is “duplicative” and would require a full chamber vote to create.
House and Senate Republicans also seem open to the discussion of a Phase 4 and potentially Phase 5 piece of stimulus legislation, but have prioritized implementing the CARES Act fully before next steps are taken. Senate Majority Leader Mitch McConnell (R-KY) indicated that a fourth bill should focus on health care needs and addressing any gaps or shortcomings of the CARES Act.
On Friday, Speaker Pelosi made it clear to reporters that the next round of relief should build upon the policies implemented in the CARES Act before moving to the broader policies that the Democratic caucus spoke on earlier in the week. The Speaker acknowledged the need to ensure that funds are being directed to states, cities and small businesses to provide relief through the pandemic. As discussions continue, Congress could reconvene in late April to pass additional legislation to address shortcomings and replenish critical funds in the CARES Act.
Read More: Outlook of Congress’ “Phase 4” COVID-19 Stimulus Package
As public officials at all levels of government continue to escalate their responses to the pandemic, the latest actions and developments may be found below. Akin Gump will continue to provide regular policy developments related to COVID-19.
Stimulus Update: Speaker Pelosi Announces COVID-19 Committee, SBA Releases Paycheck Protection Program Rule, DOE Announces Strategic Petroleum Reserve Plans
- Speaker Pelosi unveiled the creation of a new bipartisan House Select Coronavirus Oversight Committee to oversee the Administration’s distribution of the $2 trillion COVID-19 economic relief funds.
- Rep. Eliot Engel (D-NY), Chairman of the House Committee on Foreign Affairs, has called on the Trump Administration to restrict the export of personal protective equipment (PPE) in a letter to Vice President Mike Pence.
- The Small Business Administration (SBA) has released its Interim Final Rule on the Paycheck Protection Program (PPP). Section 1102 of the CARES Act temporarily permits SBA to guarantee 100 percent of 7(a) loans under the new program, while Section 1106 provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the program. The rule applies to applications submitted under the program through June 30, 2020. Applications for the PPP program opened on April 3.
- On April 2, the U.S. Department of Energy (DOE) announced plans to lease out space for energy companies to store oil in the Strategic Petroleum Reserve (SPR). The plan immediately makes 30 million barrels of the SPR’s oil storage capacity available to U.S. oil producers that are awarded a contract. DOE has stated in its Request for Proposal that the primary factor for determining winning bids will be the highest fixed monthly exchange ratio submitted by a conforming bidder. Proposals must be received by DOE before 11:00 a.m. CST on April 9, 2020. Potential offerors must register in the System for Award Management at https://www.sam.gov/.
White House Coronavirus Task Force Briefing Highlights
On Friday, April 3, the White House Coronavirus Task Force conducted a briefing from the White House Press Briefing Room. Highlights of the discussion included:
White House Coronavirus Task Force Press Briefing Highlights
- As a result of new data on asymptomatic transmission of COVID-19, the Centers for Disease Control and Prevention (CDC) is now recommending that Americans wear cloth or fabric masks in public. The President emphasized that N95 respirators and medical grade surgical masks must be reserved for health care workers.
- President Trump stressed that the new mask guidelines are voluntary and said that he would not be wearing a mask himself.
- The President is invoking the Defense Production Act to restrict the export of scarce medical supplies, including respirators and other personal protective equipment.
- The Department of Health and Human Services (HHS) will use a portion of the $100 billion allocated in the CARES Act for provider reimbursement to cover treatment costs for uninsured patients with COVID-19. Providers will be paid at the Medicare rate.
- HHS Secretary Alex Azar pointed out that individuals who have recently lost employer-sponsored coverage are eligible for a special enrollment period under the Affordable Care Act.
- The PPP was opened today to small businesses. Already, more than $3.5 billion in loans have been processed.
- The President met today with several energy industry executives and informed them that the Administration will make space in the Strategic Petroleum Reserve for their companies to store surplus oil.
- The task force is monitoring the outbreaks in New York City, Chicago, Detroit, New Orleans and Boston. In addition, there are “developing concerns” about Washington, D.C., and metropolitan areas in Connecticut and Colorado.
- Data from California and Washington State suggest that social distancing and other mitigation efforts are helping to “flatten the curve.”
- Oracle has developed a web portal to gather crowdsourced real-time information on how patients are responding to potential COVID-19 therapeutics. Doctors and other providers who want to participate can sign up online at www.covid19.oracle.com.
Relevant Links
Akin Gump Alerts and Other Resources
Akin Gump COVID-19 Resource Center
Outlook of Congress’ “Phase 4” COVID-19 Stimulus Package
COVID-19 U.S. State and Local Response Map
Emergency Powers and Constitutional Limits
Real Estate: Considerations for California’s Commercial Landlords During the COVID-19 Crisis
Public Companies: SEC Extends COVID-19 Regulatory Relief for Public Companies, Funds and Investment Advisers and Issues Additional Guidance
Telecommunications: COVID-19 Support for the Telecommunications Industry
Corporate Governance: SEC Extends COVID-19 Regulatory Relief for Public Companies, Funds and Investment Advisers and Issues Additional Guidance
Labor and Employment: Equal Employment Opportunity Commission Issues Updated Guidance on COVID-19 and Federal Disability Discrimination Laws
Real Estate: Government Agencies Consider Use of Hotels for COVID-19 Medical Care – Here’s What You Need to Consider
Tweets
U.S. Food and Drug Administration (FDA) Commissioner Steven Hahn
- Tweet at 12:59 PM, April 2, 2020 (Link)
- “Today, as part of FDA’s ongoing commitment to fight the COVID19 pandemic, we issued guidance for immediate implementation to address the urgent & immediate need for blood & its components. (Press Release)”
The Federal Reserve
- Tweet at 11:31 AM, April 2, 2020 (Link)
- “The Federal Reserve, Commodity Futures Trading Commission, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and Securities and Exchange Commission announce they will consider comments submitted through the end of the month on Volcker Rule modifications following expiration of comment period yesterday: (Press Release)”
Federal Deposit Insurance Corporation (FDIC)
- Tweet at 11:19 AM, April 3, 2020 (Link)
- “FDIC has extended the public comment period for its proposed rule to modernize its brokered deposit regulations by 60 days. Comments will now be accepted through June 9, 2020. (Press Release)”
Centers for Medicare & Medicaid Services (CMS) Administrator Seema Verma
- Tweet at 3:40 PM, April 2, 2020 (Link)
- “CMS has approved an additional 4 state Medicaid COVID19 1135 waivers bringing the total to 44. These states include: Georgia, Alaska, Arkansas, and Nebraska. Learn more here.”
- Tweet at 7:17 PM, April 2, 2020 (Link)
- “CMS released new Medicaid & CHIP FAQs for states on COVID19 flexibilities including eligibility & enrollment, benefits, & cost-sharing. Read the FAQs here.”
- Tweet at 9:59 PM, April 2, 2020 (Link)
- “Building on recent guidance & longstanding infection control procedures, CMS has, at the direction of President Trump, issued critical recommendations to both nursing homes & state & local governments to mitigate the spread of COVID19. (Press Release)”
House Speaker Nancy Pelosi (D-CA)
- Tweet thread at 1:41 PM, April 2, 2020 (Link)
- “The Congress has so far passed three pieces of legislation totaling over $2 trillion in emergency relief. To ensure that your tax dollars are being spent carefully & effectively, I am announcing the formation of the bipartisan House Select Committee on the Coronavirus Crisis.”
- “Led by Whip Clyburn, the Select Committee will root out waste, fraud, and abuse, and ensure money makes it to those who need it most – the working families struggling to pay rent and put food on the table. (Press Release)”
