Update from Washington, D.C.
October 1, 2020
President Signs Stop-Gap Budget Bill; COVID-19 Stimulus
Talks Continue
Earlier today, President Trump signed into law a continuing
resolution (CR) that funds federal government operations through
December 11. The measure (HR 8337), which cleared both chambers
of Congress with strong bipartisan support, was necessary due to
the lack of consensus within Congress regarding how to advance a
long-term budget for the fiscal year that began at midnight.
While HR 8337 provides funds most federal departments at fiscal year 2020 spending levels, the bill adjusts the amount of funding that is available to certain agencies and also extends a number of expiring statutory authorities. For example, the measure includes a provision requested by the White House and Senate Republicans that allows the Agriculture Department’s Commodity Credit Corporation to be reimbursed for payments made to farmers and ranchers. In addition, HR 8337 extends federal surface transportation programs and the National Flood Insurance Program through September 30, 2021.
The CR also continues for a full year the Pandemic Electronic Benefit Transfer (P-EBT) program, which allows states to adjust their Supplemental Nutrition Assistance Programs (SNAP) to provide additional aid to households with children eligible for free or reduced-price school meals for school closures related to the coronavirus pandemic. The program, which was established under the Families First Coronavirus Response Act (PL 116-127), is expanded to include children at child care facilities affected by shutdowns and at schools with reduced attendance hours. The measure also extends for a full year other program flexibilities included in PL 116-127, including waivers for the National School Lunch Program and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).
Looking ahead, lawmakers will attempt to complete work on the fiscal year 2021 budget during the post-election lame duck session. However, this will be a difficult task, as Congress has yet to approve any of the 12 annual spending bills. Moreover, the results of the election will no doubt play a role in whether or not any progress is made.
COVID-19 Relief
This week, House Speaker Nancy Pelosi (D-CA) and Treasury Secretary Steve Mnuchin resumed negotiations on a potential COVID-19 relief package. At press time, Pelosi and Mnuchin were discussing the parameters for a potential deal, though it remains unclear if the parties will be able to reach consensus in the little time remaining before lawmakers are scheduled to head home for the final stretch of the campaign season.
In the absence of an agreement with the White House, House Democratic leaders have indicated their intention to move forward with legislation that they are characterizing as an updated version of the $3.4 trillion House-passed HEROES Act (HR 6800). The bill (HR 8406), which carries a slimmed down price tag of roughly $2.2 trillion, includes $436 billion in COVID-19-related fiscal relief
to states and local governments. By way of comparison, the original HEROES Act included $915 billion in financial support for states and localities.
Of the $436 billion, $238 billion would be available to states, $179 billion would be evenly divided between counties and cities, and $19 billion would be split between tribes and U.S. territories. Under the bill, fiscal relief funds would be available until expended and could be used for COVID-19-related expenses, to replace foregone revenues, or to respond to negative economic impacts of the pandemic. In addition, HR 8406 would amend the CARES Act (PL 116-136) by expanding the use of Coronavirus Relief Fund (CRF) dollars to cover lost, delayed, or decreased revenue stemming from the health emergency. The bill also would extend the date of expenditure for CRF funds to December 31, 2021.
Other major provisions of HR 8406 include: stimulus payments equal to $1,200 per taxpayer and $500 per dependent; restoration of the enhanced federal unemployment insurance benefit of $600 per week through January 2021; new aid for airlines and small businesses; and, the preservation of health insurance for individuals who lose their employer-provided coverage by making unemployed individuals automatically eligible to receive the maximum Affordable Care Act subsidy.
To follow are other key provisions of the updated HEROES Act:
Nutrition Assistance
The bill would increase Supplemental Nutrition Assistance Program (SNAP) benefits by 15 percent – while also boosting the minimum benefit from $16 to $30 per month for small households – until September 30, 2021. In addition, the legislation would lift mandatory work requirements for SNAP for one year and would exclude the Pandemic Unemployment Compensation as countable income for purposes of calculating SNAP benefits.
HR 8406 also includes funds for other key nutrition programs, including $400 million for the Special Supplemental Nutrition Program for Women Infants and Children (WIC) and $450 million for the Emergency Food Assistance Program (TEFAP) to help local food banks meet increased demand for low-income Americans during the emergency.
Medicaid
HR 8406 includes a COVID-19-related temporary increase in Federal Medical Assistance Percentage (FMAP) payments to Medicaid programs by a total of 14 percentage points starting October 1, 2020 and extending through September 30, 2021. The bill also would eliminate cost-sharing for COVID-19 treatment and vaccines for Medicaid beneficiaries during the public health emergency and would provide a temporary increase in Medicaid DSH allotments.
Housing and Homelessness
The new House legislation would provide $5 billion in flexible Community Development Block Grant (CDBG) funding to help states and local governments mitigate and address the health and economic impacts of COVID-19. The measure also includes $5 billion in Homeless Assistance Grant funding and $5 billion for Emergency Solutions Grants to assist individuals and families who are homeless or at risk of homelessness.
HR 8406 also would provide $4 billion in tenant-based rental assistance to allow public housing agencies (PHAs) to respond to the coronavirus and $2 billion for PHAs to carry out coronavirus response for the operation and management of almost one million public housing units. Additional funds are included for emergency rental assistance and project-based rental assistance, as well as dedicated funding for housing for the elderly and persons with disabilities.
Health and Human Services
The House bill includes nearly $250 billion for various COVID-19 response activities and programs through the Department of Health and Human Services. Select highlights include:
- $7.6 billion for health centers to expand the capacity to provide testing, triage, and care for COVID-19 and other health care services;
- $500 million for maternal and child health programs to support outreach and provision of newborn screenings, vaccine provision, prenatal care, and other services that have been more difficult to access during the pandemic;
- $100 million to Ryan White HIV/AIDS clinics to support extended operational hours, increased staffing hours, additional equipment, and additional home delivered meals and transportation needs of clients;
- $13.7 billion to support federal, state, and local public health agencies to prevent, prepare for, and respond to the coronavirus, including: $2 billion for state, local, territorial, and tribal public health departments and an additional $2 billion for grants to departments to purchase personal protective equipment for essential workers;
- $8.5 billion to provide increased mental health and substance abuse services and support, including: $3.5 billion for the Substance Abuse and Prevention Treatment Block Grant; $4 billion for the Mental Health Services Block Grant; $600 million for Certified Community Behavioral Health Clinics; $50 million for suicide prevention programs; $100 million for Project AWARE to support school-based mental health for children; $10 million for the National Child Traumatic Stress Network; and, $240 million for emergency grants to States, among other sub-allocations; and,
- $65.2 billion to provide supportive and social services for families and children, including: $50 billion for Child Care Stabilization Grants; $7 billion for Child Care and Development Block Grants; $4.5 billion for the Low-Income Home Energy Assistance Program (LIHEAP); $1.7 billion for Head Start; $75 million for Child Welfare Services; $100 million for Family Violence Prevention and Services; $100 million for Child Abuse Prevention and Treatment Act (CAPTA) State Grants; and, $225 million for Community Based-Child Abuse Prevention Grants.
Federal Emergency Management Agency
The bill includes $200 million for FEMA’s Emergency Food and Shelter Program; $500 million for Assistance to Firefighter Grants; $500 million for Staffing for Adequate Fire and Emergency Response (SAFER) grants; and, $100 million for Emergency Management Performance Grants (EMPG).
The legislation also would increase the Federal share of FEMA assistance for COVID-19-related emergencies and major disasters to 100 percent. The bill would adjust the floor for the Federal share of FEMA assistance from 75 percent to not less than 90 percent for any emergencies and major disasters declared pursuant to the Stafford Act in 2020.
Department of Transportation
Building upon the grant funding that was approved as part of the CARES Act, the updated HEROES Act would provide $32 billion in transit emergency relief, of which $28.5 billion would be for operating assistance grants. The bill also would provide $13.5 billion in economic relief to airports, with the majority of funding allocated based on each airport’s enplanements, as well as $75 million in Essential Air Service funding to preserve scheduled passenger air service for small communities.
Justice
HR 8406 would provide $375 million for Violence Against Women Act (VAWA) programs, with a waiver of the local match requirement. The bill also includes $250 million for Second Chance Act grants and $600 million for Pandemic Justice Response Act Grants, of which $500 million would be for preventing, detecting, and stopping the presence of COVID-19 in correctional institutions and for pre-trial citation and release grants.
Broadband
The bill includes $12 billion to close the homework gap by providing funding for Wi-Fi hotspots and connected devices for students and library patrons, $3 billion for emergency home connectivity, $200 million for telemedicine grants, and $24 million for broadband mapping.
Postal Service
HR 8406 would provide $15 billion for Postal Service revenue that has been forgone due to the coronavirus pandemic, plus language providing protections to Postal workers. An additional $15 million would be provided for the Postal Service Inspector General for oversight.
Emergency Family and Medical Leave Expansion Act and Emergency Paid Sick Leave Act
The House bill would extend the refundable payroll tax credits for paid sick and family leave, which were enacted as part of the Families First Coronavirus Response Act, through the end of February 2021. The bill also removes the exclusion disallowing the credits for Federal, state, and local governments.
Deduction of State And Local Taxes
The House legislation would eliminate the limitation on the deduction for state and local taxes for the 2020 taxable year.
SAFE Banking
HR 8406 would allow cannabis-related businesses, along with their service providers, to access banking services and products, as well as insurance. The bill also requires reports to Congress on access to financial services and barriers to marketplace entry for potential and existing minority-owned cannabis-related legitimate businesses.
More information on the revised HEROES Act, including the text of the bill and a section-by-section summary, can be accessed here.