Capitol Corner: July 2020
The following excerpt was written by Strategics Consulting for the Centralina Regional Council article series “Capitol Corner.”
COVID-19
Senate GOP leadership introduced their plan on July 27 for the fifth coronavirus relief package. Called the “Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act,” the plan does not include additional funding for state and local governments. Instead, flexibility was added for the previously funded Coronavirus Relief Fund allowing that CARES Act money to be spent past the original December 30, 2020 deadline, and uses of relief payments expanded to include lost revenue. However, only 25 percent of these funds could be used towards revenue shortfalls. The HEALS Act is a $1 trillion package set up as a series of smaller bills for piecemeal approach to address expiring items quickly while leaving other issues to be tackled with more time to negotiate. The plan includes additional funds for the Paycheck Protection Program; renewal of unemployment benefits, although reduced; another round of checks to individuals; liability limits for employers; funds to help with school re-openings; and investments in testing, hospitals, child care and workforce training.
The Senate plan is considered the starting point for negotiations. Senate Republicans and the Trump Administration do not want this next phase to exceed $1 trillion, but House Speaker Nancy Pelosi (D-CA) has rejected that cap. House and Senate Democrats have also pushed back against a piecemeal approach. State and local assistance, in addition to flexibility, is a priority that many believe still has a chance to be included in a final package.
The House had planned to be in recess all of August, with the Senate planned recess to start August 7. House leadership will now be in session for at least another week with the hope an agreement can be reached. However, given how far apart the two sides are on the size and scope of the next package, it may take the rest of the summer to reach a deal both sides can support. It is also likely that this next installment will be the last before the November elections.
