Today the Senate voted 90-8 to pass the economic stimulus package (H.R. 6201) that was approved last week by the House of Representatives. This legislation will provide free COVID-19 testing, two weeks of paid sick leave, enhanced jobless benefits, increased food aid for children and senior citizens, and higher funding for Medicaid benefits. The legislation now goes to President Trump where it’s expected to be signed into law in the next 48 hours.
COVID Stimulus 3.0
The focus now shifts to a third economic stimulus package that could top $ 1 trillion. It is likely there will be multiple rounds of stimulus to address ongoing economic disruptions. The Trump Administration outlined a proposal to Senate Republicans today that would provide loans for the airline industry, two rounds of direct stimulus payments to individuals and families, and funds to establish a small business interruption loan program. The White House Office of Management and Budget (OMB) is also requesting an additional $46 billion in emergency funding for federal agencies.
Next Steps in Congress
Senate Majority Leader McConnell (R-Ky) plans to reach agreement on the package with Senate Republicans first, before negotiating the final version with Senate Democrats. The Majority Leader assigned Republican Senators to three working groups that will develop policies to stabilize airlines, adjust tax policies and address business liquidity issues. Lawmakers are working quickly to reach consensus, but given the scale and scope of the policies under consideration, it could take several weeks before a package clears both the House and Senate. Reports have indicated that given the tight timeline, lawmakers are giving preference to previously vetted and considered legislative and economic relief proposals.
Senate Democrats have put forward a competing $750 billion proposal that would provide funding to increase capacity at hospitals, buy ventilators, masks, and other medical equipment needed for response efforts. Democratic leaders are also discussing another increase in the federal share of Medicaid spending. While the House is not currently in session, leaders are busy working with Members on additional proposals with the discussion focusing on providing more robust long-term medical leave policies and refundable tax credits.
Defense Production Act
This afternoon President Trump invoked the Defense Production Act (50 U.S.C. 4501 et seq.) due to supply concerns over medical resources necessary to respond to the COVID-19 outbreak, including personal protective equipment and ventilators. According to an Executive Order (EO) issued today, the authority to require performance of contracts or orders (other than contracts of employment) to promote the national defense over performance of any other contracts or orders, to allocate materials, services, and facilities as deemed necessary or appropriate to promote the national defense, is delegated to HHS Secretary Azar. The EO directs that Secretary Azar may use the authority under section 101 of the Defense Production Act to determine, in consultation with the Secretary of Commerce and the heads of other executive departments and agencies as appropriate, the proper nationwide priorities and allocation of all health and medical resources, including controlling the distribution of such materials (including applicable services) in the civilian market, for responding to the spread of COVID-19 within the United States.
Easing Practice Restrictions
Vice President Pence announced that HHS is issuing a regulation to allow health care providers to practice across state lines in an effort to meet demand surges brought by the COVID-19 outbreak.
