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COVID-19 Legislative Update – March 20, 2020 Courtesy of Cornerstone Government Affairs

3.20.2020 - COVID-19 Legislative Update

Congress • House is currently in recess but will be called back when votes are needed on the next supplemental (with 24-hour notice). House Democratic leaders have said that members will not have to return until after a stimulus deal is reached. • Senate is in session. Leader McConnell has said the Senate will stay in session until a third supplemental has passed. • As of right now, the appropriations markup schedule is unchanged. Most House bills have subcommittee markup dates the weeks of April 21 and April 28, while the Senate has not yet set its markup dates. • Remote voting: Speaker Pelosi and Leader McConnell have both voiced opposition to members’ voting remotely, but as more members of Congress have begun self-quarantining and the pandemic makes travel more treacherous, in-person voting may become more difficult. Speaker Pelosi circulated a Dear Colleague yesterday stating that the House will “adjust our voting procedures in order to follow the CDC’s recommendations.” Similarly, Leader McConnell has recognized that there are ways to modify voting procedure to mitigate risks (extend the voting period, allow members to enter the floor from multiple entrances etc.). Remote voting is being discussed to some extent in both chambers. • Virtual hearings: While most hearings and markups for the next week or so have been cancelled, some committee staff are working to see whether holding hearings virtually is possible.

Members of Congress in Quarantine or Treatment Tested Positive (2): Rep. Ben McAdams (D-UT), Rep. Mario Diaz-Balart (R-FL) Currently Self-Quarantined (26): Rep. (R-AZ), Rep. (D-CA), Rep. (D- CO), Rep. Matt Gaetz (R-FL), Rep. Mario Diaz-Balart (R-FL), Rep. Doug Collins (R-GA), Rep. (R-LA), Rep. (R-MO), Rep. Ben Ray Luján (D-NM), Rep. (D-NY), Rep. Kendra Horn (D-OK), Rep. (D-PA), Rep. Ben McAdams (D-UT), Rep. (D-WI), Rep. (D-FL), Rep. (D-FL), Rep. Drew Ferguson (R-GA), Rep. Joe Cunningham (D-SC), Rep. (R-OK), Rep. (R-AZ), Rep. Anthony Brindisi (D-NY), Rep. David Price (D-NC), Rep. (D-NJ), Sen. (R-FL), Sen. Lindsay Graham (R-SC), Sen. Cory Gardner (R-CO) Completed Quarantine (2): Sen. Ted Cruz (R-TX), Rep. (R-NC)

Legislation Supplemental II – Families First Coronavirus Response Act (HR 6201) • The Senate passed the bill 90-8 Wednesday afternoon and the President signed the bill into law that evening. Bill text here. Factsheet here. Bill section by section here. A summary of paid leave provisions, incorporating changes made by technical correction, is here.

Supplemental III – “COVID-III” • Timeline: Leader McConnell has stated he wants an agreement in principle by midnight tonight with a goal of beginning moving the bill on the Senate floor on Saturday and House passage by Monday. Leader Schumer and Speaker Pelosi met with Sec. Mnuchin at 8:30pm and early reports indicate progress has been made. While the prospect of an agreement by midnight tonight is optimistic, if negotiations continue on the current path, it could come together. Earlier today Senate leaders broke off into bipartisan groups with the expectation of hashing out deals in their respective policy areas by this afternoon. House Democratic committee staff have been working closely with Pelosi staff to ensure key provisions are included in the Senate proposal. o Small Business seemed to making progress quickly, as they had done a good part of the work in advance (the Senate Small Business Committee majority and minority released proposals yesterday). o Earlier today Leader McConnell filed cloture on the motion to proceed to H.R. 748, which will serve as the legislative vehicle for COVID-III.

• Process and Politics: There is immense pressure to get a bill done quickly—the public health crisis will only intensify and, with most businesses shut down and layoffs increasing every day, the economic outlook is increasing bleak. Congress seems to view this bill as means to stop the bleeding before shifting to focus on recovery. The intensity of the crisis also places similar pressure on ensuring it is a bipartisan deal. A broad, bipartisan vote in the Senate would carry momentum to allow a vote by unanimous consent in the House (and thus passage on Monday/early next week without the return of members of the House). Without a broad bipartisan vote, the argument for a unanimous consent vote has less appeal and Speaker Pelosi will have to call members back to D.C. for a vote. o Considering these pressures, it seems likely that Democrats and Republicans focus less taking out each other’s favored provisions and more on ensuring their most proposals are included.

• Policy: The Republicans have laid down a marker with their draft bill, the CARES Act, released yesterday. Highlights included tax relief for business, cash grants for individuals, expansion of loans for small businesses, support for the airline industry, and bolstering the U.S.’s public health infrastructure. Text here. Summaries of each division below. o Division A – Small Business Interruption Loans (one pager here, section by section here) . Note: Sen. Rubio (Chair SBC) clarified today that private non-profits are eligible for loans under this section. o B – Relief for Individuals, Families and Businesses (summary here) o C – Assistance to Severely Distressed Sectors of the United States Economy (summary here) o D – Health Care Response (HELP section summary here, SFC section summary here)

• Speaker Pelosi and Leader Schumer swiftly issued a statement after the release of CARES, outlining their top priority is supporting public health and calling for a “Marshall Plan” for public health infrastructure. Pelosi and Schumer continued to be focused seem on provisions aimed at increasing funding and support for hospitals and supporting workers and families. Some concrete policies outlined in the statement included increasing unemployment insurance and , investment in small businesses, expanding paid sick and family leave, student loan cancellations, and direct cash grants to those most vulnerable.

• This afternoon, Majority Whip circulated a Dear Colleague that outlined the following priorities for Democrats: increasing funding for Community Health Centers (CHCs), expanding Medicaid in every state, ensuring universal and affordable broadband for all Americans, aid for HBCUs, expansion of the Earned-Income Tax Credit and Child Tax Credit, cash grants (800-1,000/month for three months), supporting charities and churches, and absentee and vote by mail for federal elections.

• As discussed in last night’s update, there’s also a lot of energy within the Democratic caucus to place guardrails on any industry support. House Democrats seem united in their determination to ensure the response to this crisis does not mimic the bailouts in ’09. As a refresher, see below for some of the stipulations Democrats have floated for any industry support: o Prioritizing workers by directing companies to use funds for payroll; o Banning stock buybacks, dividends, executive bonuses until federal funds are repaid (or three years after); o Cap on senior exec pay (not larger than 50x median worker pay); o At least one board seat reserved for worker representative; o Collective bargaining agreements remaining in place; and, o Some form of oversight authority on compliance, such as mandating CEOs personally certifying company compliance (or face criminal penalties for violations).

• Extra FY20 appropriations may be included after all: there’s efforts underway to incorporate the appropriations-specific pieces from OMB’s submission earlier this week into the bill. This piece could be as large as $150 billion. As for timeline, it mirrors the broader quickness of the larger package: deal in principle tonight, finalize language by 5pm tomorrow. Unclear as of right now if it will end up being attached to COVID-III or provide the base for the next supplemental. It is also important to note that it will not be subject to the budget agreement because it is designated as emergency spending. o The request is essentially being treated like a traditional President’s budget request and the subcommittees have been tasked with presenting ideas on funding measures that would support COVID-19 response within their accounts.

Supplemental IV – “COVID-IV” • The current discussions going on around COVID-III are focused on improving individuals’ and businesses’ cash flow and liquidity, but the fourth supplemental will likely shift the conversation toward recovery. The number of supplemental appropriation bills passed will wholly depend on how prolonged and severe the epidemic becomes in the United States. As for what’s likely to be included in recovery packages, infrastructure seems the top candidate –

Rep. DeFazio (T&I Chair) said earlier this week that his is planning on having an infrastructure bill on the floor in May as part of the stimulus, regardless of if its paid for.