Update From Washington, D.C.
Congressional Leaders Inching Toward COVID-19 Deal
December 17, 2020
Release of FY 2021 Omnibus Spending Bill Expected Soon
After months of failed negotiations, congressional leaders are nearing an agreement on a COVID-19 relief and economic stimulus package. The emerging legislation, some of the details of which are slowly coming to light, is expected to carry a price tag of roughly $900 billion. While the timetable for floor votes remains uncertain, the proposal will likely be paired with a fiscal year 2021 omnibus appropriations measure and considered in both houses of Congress in the coming days. Because the current stopgap budget Act (PL 116-215) is set to expire tomorrow at midnight, it appears as though lawmakers will need to pass another short-term spending bill in order to avoid any interruption in federal agency operations.
Paving the way for the near-final COVID-19 deal was an agreement by congressional leaders to take two contentious issues off the negotiating table, namely another round of federal fiscal aid to states and local governments, as well as language that would shield businesses from coronavirus-related lawsuits. Failure to secure additional financial support for struggling states and localities represents a major setback for Democratic congressional leaders who have fought for months to include the funding as part of a fifth federal stimulus measure. Champions of this particular issue are vowing to resurrect their push to secure the state and local aid once the new 117th Congress convenes, though there is no guarantee that such a package will advance in 2021.
While additional direct federal support for states and localities hit the cutting room floor, the emerging relief package may provide an increase in Federal Emergency Management Agency (FEMA) reimbursements to local governments for COVID-19-related costs. All told, the funding could amount to as much as $90 billion for states and local governments. For its part, CSAC has urged congressional leaders to include this provision in the final package. In addition, the association has encouraged Congress to extend the upcoming spending deadline for Coronavirus Relief Funds (CRF) and to expand CRF eligibility to cover lost revenues.
At this point, it’s unclear whether the aforementioned requests will be included in the final legislation. However, the measure – which is largely based off a recent bipartisan, bicameral stimulus framework offered by the Congressional Problem Solvers Caucus – is expected to include the following provisions:
- a new round of direct stimulus payments to Americans. The checks are expected to be about half of the $1,200 per-person maximum authorized by the CARES Act;
- emergency rental assistance, coupled with a temporary extension of the national eviction moratorium;
- an extension of all federal pandemic unemployment insurance programs by 16 weeks and an expanded federal benefit of $300 per week over that same time;
- a new round of small business assistance through the Paycheck Protection Program;
- funding for testing, tracing, and COVID-19 vaccine development and distribution, with direct grants available to state and local governments;
- additional nutrition assistance, including a temporary increase in SNAP benefits, an expansion of the Pandemic-EBT program, and funding for the Emergency Food Assistance Program, among other things;
- grants to child care providers that are currently open or temporarily closed due to COVID-19;
- funding to address COVID-related impacts on farmers, ranchers, growers, and fisheries; and,
- additional federal assistance for broadband deployment and connectivity.