[co-author: Taylor Daly, Public Policy Specialist]

Congress, Administration Call for Additional Emergency Coronavirus Relief – Differences Remain

In coordination with congressional Republican leadership (and with little advance notice to their Democratic counterparts), Treasury Secretary Steven Mnuchin requested immediate additional, interim funding for the Paycheck Protection Program (PPP) for small businesses. Senate Majority Leader Mitch McConnell (R-KY) quickly released a statement indicating that he plans to work with Secretary Mnuchin to approve funding for the program by unanimous consent or voice vote as soon as the next Senate session tomorrow, Thursday, April 9.

After receiving the Administration’s request for more PPP funding, House Speaker Nancy Pelosi (D-CA) and Senate Minority Leader Chuck Schumer (D-NY) made public statements echoing the Administration’s call for $250 billion more in assistance to small businesses, but insisted on several conditions, such as channeling $125 billion through community-based financial institutions to ensure women and minority-owned businesses, among others, can access the funds. Congressional Democrats are also calling for an additional $100 billion for hospitals, community health centers and health systems, and $150 billion for state and local governments. For families, Democrats have also called for a 15 percent increase to the maximum Supplemental Nutrition Assistance Program (SNAP) benefit.

In a letter from the Office of Management and Budget (OMB) on Tuesday, the Administration indicated that the Small Business Administration (SBA) has recorded over 220,000 loans totaling approximately $66 billion. However, given the level of demand for the program, the letter asserted that program funding will soon be exhausted. As such, the Administration has requested to amend the Coronavirus Aid, Relief, and Economic Security (CARES) Act to increase the funding for the program by $251 billion.

Given the parties’ current different posture it is not yet clear how the additional relief will proceed. If no senators raise objections about further emergency funding, the chamber may pass an emergency funding measure by unanimous consent without requiring members to return physically to vote. Otherwise, the Senate aims to approve a measure by voice vote on Thursday.

It is unclear, at this time, when the House would take up a measure and such timing will likely be determined by the progress of negotiations. Details of the House proposal for supplemental funding were fleshed out this afternoon, with a draft text of the Financial Services portion of the measure released. Additional information on the text is below, and links related to this topic may be found below under Related Links and captioned “Phase 3.1.”

After Congress enacts this interim emergency legislation, members will continue to work on a Phase 4 package that expands upon prior COVID-19 stimulus measures.

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: Congress Looks to Additional Interim Emergency Relief, House Releases Draft Text

• Senate Majority Leader McConnell and House Minority Leader McCarthy on Tuesday called for additional funding to carry out the PPP established by the CARES Act. House Speaker Pelosi and Senate Minority Leader Schumer have since echoed the need for additional PPP funding, calling for an interim relief package to provide $250 billion in assistance to small businesses. Democrats are also pushing for this interim package to include an additional $100 billion for hospitals community health centers and health systems, and $150 billion for state and local governments. The Senate aims to approve a package by unanimous consent or voice vote on Thursday.
• Draft text of the House bill was released this afternoon. The measure would provide for an additional $185 billon for 7(a) loans, as well as the inclusion of “agricultural enterprises” with less than 500 employees in emergency Economic Injury Disaster Loan (EIDL) grants, and increase the amount of available capital for small businesses from 2.5 times monthly payroll to 3 times monthly payroll.
• The Department of Transportation on Tuesday issued a final order for implementing the authority granted to the Secretary of Transportation by the CARES Act. The order, which contains some exceptions, requires that air carriers receiving financial assistance under the CARES Act maintain minimum air services across the country.
• On Tuesday, the Centers for Medicare & Medicaid Services (CMS) announced it has approved approximately $34 billion in payments to providers over the past week as part of the Medicare accelerated/advance payment program. According to CMS, the average processing time for a request is four to six days.
• The Small Business Administration today announced that it has extended its EIDL application deadline to December 31, 2020, for all U.S. states and territories. This Notice is also corrected to remove the credit elsewhere limitation. The corrections will be officially published tomorrow.

White House Coronavirus Task Force Briefing Highlights

On Monday, April 6, the White House Coronavirus Task Force conducted a briefing from the White House Press Briefing Room. Highlights of the discussion included:

• President Donald Trump began the White House task force briefing by expressing his “best wishes” for British Prime Minister Boris Johnson, who has been placed in intensive care after being diagnosed with COVID-19.
• President Trump assured the American people that the nation’s hospital and health systems would be adequately stocked, supplied and prepared to handle the expected surge in COVID-19 cases over the next couple of weeks. He also stated that there are approximately 9,000 ventilators in the National Stockpile and that the United States Naval Ship Comfort can now be used for COVID-19 patients from New York and New Jersey.
• When discussing the $349 billion small business lending program, President Trump, who repeatedly praised Bank of America, acknowledged that the program ran into a few “glitches,” but he assured the nation that these issues have been addressed. He also indicated that the government is likely to request additional funds for the program to help keep small businesses operating and retain their employees.
• Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, indicated that the virus is not likely to be eradicated this year, stressing the need to continue preparing for a potential resurgence of the disease later this year.
• President Trump confirmed that he spoke with former Vice President Joe Biden about the COVID-19 pandemic earlier today, adding that Vice President Biden shared suggestions for actions the Administration can take to address the ongoing pandemic.
• President Trump dismissed and rejected a Health and Human Services Inspector General report that surveyed hospitals and found a severe shortage of tests, a long wait on results and shortage of key personal protective equipment.
• President Trump and members of the task force mentioned that they have rebuilt the country’s testing system, noting that prior testing capacity was unprepared for the magnitude of the COVID-19 pandemic. Members of the task force also noted that antibody testing will soon be widely available, which would allow for them quickly and easily to test people who have had the virus.
• When asked about a Phase 4 stimulus bill, President Trump expressed interest in an infrastructure bill to rebuild the nation’s roads, highways and bridges, estimating that it would cost between $1 and $2 trillion. He also mentioned that providing a second round of $1,200 payments to Americans remains a possibility.

Highlights of the Tuesday, April 7 White House Coronavirus Task Force briefing included:

• President Trump indicated that the federal government has helped distribute over 100,000 ventilators. He also mentioned that the United States has administered 1.9 million testing kits, adding that the nation is producing 50,000 testing cartridges daily.
• President Trump expressed gratitude toward the banking community for its participation in the PPP program. He also mentioned that he has requested an additional $250 billion to ensure that small businesses receive the assistance they need.
• Dr. Anthony Fauci noted that COVID-19 is disproportionately infecting and impacting African American populations, adding that health disparities have always existed in the African American community. CMS Administrator Seema Verma indicated that CMS would collect more data and look into potential factors contributing to the high rates of infection in minority communities. Dr. Fauci also stated that he does not expect the American economy to reopen in the near future.
• When asked about the newly surfaced memos from economic adviser Peter Navarro, President Trump dismissed the matter, noting that he had not seen the memos. On Acting Navy Secretary Thomas Modly’s resignation on Tuesday, President Trump indicated that he “had no role” in it, calling the resignation “unfortunate.”
• President Trump announced that he has removed Glenn Fine, who had served as the Department of Defense Acting Inspector General since before the President took office. He noted that Mr. Fine is being replaced by Sean O’Donnell, who is currently the Acting Inspector General at the Environmental Protection Agency.
• President Trump criticized World Health Organization (WHO) for its slow response to the COVID-19 pandemic, noting that he would consider halting funding for the organization due to its bias in favor of China. He also asserted that the United States is the single largest contributor to the WHO, contributing 21 percent of the organization’s total funding, noting that China contributes only eight percent.
• When asked about the State of Wisconsin holding in-person voting for its primaries, President Trump stated that he endorsed the Republican incumbent Justice Dan Kelly for the Wisconsin Supreme Court, and argued that mail ballots are “dangerous” and “corrupt.”
• Dr. Deborah Birx, White House COVID-19 Response Coordinator, stated that the State of New York has the highest rate of confirmed COVID-19 cases. She stressed the importance of continuing to practice social distancing and quarantining if symptoms emerge.

Relevant Links

• Phase 3: Paycheck Protection Program Loans – FAQs
• Phase 3: Treasury Q&A: Loans to Air Carriers and Eligible Businesses and National Security Businesses
• Phase 3: Treasury Loan Application for Air Carriers and Certain Eligible Businesses
• Phase 3: Treasury FAQs on Paycheck Protection Program
• Phase 3: U.S. Department of Transportation Issues Final Order on Service Obligations for Air Carriers Receiving Financial Relief Through CARES Act
• Phase 3: Chairman Crapo Letter on Paycheck Protection Program
• Phase 3.1: House Financial Services PPP Supplemental Funding Draft
• Phase 3.1: Paycheck Protection Program Increase Act of 2020
• Phase 3.1: McConnell Statement on Additional Funding for Paycheck Protection Program
• Phase 3.1: McCarthy Statement on Additional Funding Needed for the Paycheck Protection Program
• Phase 3.1: Pelosi and Schumer Joint Statement on Interim Emergency Coronavirus Relief
• Phase 3.1: OMB Letter on Administration’s Request for Additional Paycheck Protection Program Funds
• Phase 4: Senate Democrats’ Proposal for Pandemic Premium Pay to Reward, Retain, & Recruit Essential Workers
• Phase 4: Pelosi Dear Colleague on Submission of House Documents
• Phase 4: House Financial Services Committee Chairwoman Waters (D-CA) Proposal
• CMS: CMS Approves Approximately $34 Billion for Providers with the Accelerated/Advance Payment Program for Medicare Providers in One Week
• CMS: New Video Available on Medicare Coverage and Payment of Virtual Services
• CMS: Guidance for Processing Attestations from Ambulatory Surgical Centers (ASCs) Temporarily Enrolling as Hospitals during the COVID-19 Public Health Emergency
• States: The Wall Street Journal Guide to State Lockdowns
• States: National Governors Association (NGA) COVID-19 Resources
• States: Stateside Associates: New Executive, Legislative And Regulatory Actions Issued By State/Local Governments

Akin Gump Alerts and Other Resources

• Akin Gump COVID-19 Resource Center
• 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
• Corporate Transactions: Tapping Your Credit Line: Is it Reasonable?
• Corporate Transactions: SEC Issues COVID-19 Guidance that Clarifies Filing Relief Related to Form 10-K Part III Information and Addresses Relief for Form 40-F
• Corporate Transactions: Implementing Coronavirus Leave under New Federal Laws: FAQs
• Energy: Fill It Up – Trump Administration Uses SPR to Help Stabilize Oil Prices
• Renewable Energy: Practical Answers to How the COVID-19 Crisis is Affecting Renewable Power Projects
• Intellectual Property: The USPTO Provides Deadline Extensions Through the CARES Act, Including for Inter Partes Reviews
• Entertainment and Media: Arbitration an Advantageous Alternative for Entertainment Disputes as Courts Remain Closed

Tweets

U.S. Food and Drug Administration (FDA) Commissioner Steven Hahn:

• Tweet at 5:03 PM, April 7, 2020 (Link)
  • “FDA continues to protect the American people from bogus products that falsely claim to prevent or treat the effects of COVID19, issuing warning letters to 5 more companies yesterday. (Press Release)”

U.S. Department of Health and Human Services (HHS) Secretary Alex Azar:

• Tweet at 4:09 PM, April 7, 2020 (Link)
  • “HHS is providing rapid point-of-care tests and devices to public health labs in every state and territory, D.C., and to Indian Health Service for tribal locations. (Press Release)”

The Federal Reserve:

• Tweet at 3:01 PM, April 7, 2020 (Link)
  • “The Federal Reserve, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, and Consumer Finance Protection Bureau issue statement on loan modifications and reporting for financial institutions working with customers affected by coronavirus (revised): (Press Release)”

Centers for Medicare & Medicaid Services (CMS) Administrator Seema Verma:

• Tweet at 7:48 PM, April 7, 2020 (Link)
  • “This past week, CMS has delivered > $34 billion to healthcare providers on the frontlines battling COVID19 – ensuring they have the resources they need – all through the expansion of the Accelerated and Advance Payment Program. (Press Release)”
• Tweet thread at 7:58 PM, April 7, 2020 (Link)
  • “CMS has temporarily implemented a streamlined process for health care providers & suppliers that need accelerated & advance payments while addressing the COVID19 pandemic, with processing times reduced to only 4-6 days. (Press Release)”
  • “Many hospitals, including inpatient acute care hospitals, children’s hospitals, certain cancer hospitals, & critical access hospitals, will have up to 1 yr to repay the accelerated or advanced payment loan. Learn more about the payment process here.”

Former U.S. Food and Drug Administration (FDA) Commissioner Dr. Scott Gottlieb:

• Tweet at 11:09 AM, April 7, 2020 (Link)
  • “Today we published a detailed blueprint for how the U.S. can build a robust surveillance and case-based system to reduce the risk of future COVID19 outbreaks. We outline the elements of effective surveillance, testing, and track and trace interventions here.”