Problem Solvers Caucus Releases COVID-19 Relief Proposal
  • The bipartisan proposal includes billions of dollars toward state and local governments, small businesses, and health care.
  • Business liability provisions are included contingent on “enhanced” OSHA guidelines.
  • House leadership dismissed the slimmed-down approach, while pledging not to leave until deal is reached. 
Today, the bipartisan Congressional Problem Solvers Caucus outlined their roughly $2 trillion proposal for the next round of pandemic relief aid amid mounting concerns from rank-and-file lawmakers about the lack of progress on leadership-level negotiations. The proposal reflects an effort to find a bipartisan compromise on several emerging and existing needs related to the COVID-19 public health emergency, including state and local aid, health care, liability protections, unemployment insurance, and child care. It also includes provisions on small business relief, broadband funding, agriculture aid, and postal service support. Bill text for the measure has yet to be released, therefore the provisions outlined below are subject to additional detail and change. 

  • Context and Next Steps. Caucus co-chairs Josh Gottheimer (D-NJ) and Tom Reed (R-NY) touted that the plan has the support of more than 75 percent of its members, which consists of 25 Democrats and 25 Republicans. Despite this bipartisan support, it's unlikely that this legislation sees a vote in the House after Speaker Nancy Pelosi (D-CA) reportedly blasted the approach on a caucus call this morning. However, House Democratic Leadership also pledged not to leave Washington until a deal on coronavirus aid is reached. Majority Leader Steny Hoyer (D-MD) reiterated that Members will receive at least 24-hours’ notice of any scheduled votes after the end of the September legislative session. 
 
A summary of the provisions outlined in the proposal can be read below.

  • Liability. The Caucus agreed on a liability provision that appears to be watered down compared to language circulated by Senate Republicans in their most recent COVID-19 relief proposal. While more details will be available once bill text is officially released, the proposal seeks to offer “enhanced protections” for entities that adhere to “enhanced” Occupational Safety and Health Administration (OSHA) guidelines. Lawmakers also highlighted “robust enforcement of worker safety” as a key pillar for the liability proposal.

  • Health Care. The proposal sets aside $100 billion for health-specific priorities related to the pandemic. This includes: (1) $25 billion for testing and tracing efforts; (2) $30 billion in provider relief funding, including support for telehealth services; and (3) $45 billion toward forgiveness of Medicare loans to providers.

  • State and Local Funding. The proposal outlines roughly $500 billion in funding for state and local governments, including new money for: (1) documented future state and local COVID-19 expenses ($130 billion); (2) documented local general revenue shortfalls ($120.3 billion); and (3) documented state revenue shortfalls ($250 billion). Additionally, it allows for “flexible use” of the $130 billion remaining in the CARES Act State, Local, and Tribal Coronavirus Relief Fund to be used on documented past state and local expenses related to the pandemic.

  • Schools and Child Care. To shore up the nation’s education and child care needs, the Caucus proposed $15 billion for child care needs, including $10 billion for provider relief and $5 billion for the Child Care Development Block Grant (CCDBG) program. The Caucus also proposes $100 billion for K-12 schools to support virtual, hybrid, and/or in-person learning, as well as $30 billion for higher education institutions.

  • Economic Support. The Caucus outlined $316 billion in funding for support toward individuals and families who are struggling during the pandemic, including funding set-asides for another round of $1,200 stimulus checks (plus $500 per child) and rental assistance through January 2021. It also would renew the pandemic unemployment assistance (PUA) program at $450 per week during an eight-week “transition period,” followed by 100 percent of wage replacement up to $600 per week through January 2021. Additionally, the group proposed a 15 percent increase to the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) and Supplemental Nutrition Assistance Program (SNAP) benefits, allocating $1 billion and $10 billion respectively to shore up food security concerns among families.

  • Small Business Relief. The proposal would allocate $290 billion toward small business relief efforts, including $240 billion for the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) and language that seeks to “rectify” the Federal Reserve’s Main Street Lending Facility. In addition to re-appropriating the $145 billion that remains in the PPP coffers, the proposal would include an opportunity for companies to apply for a second PPP loan, as well as provisions on flexibility for the use of funds, simplified forgiveness, and increased transparency. The Caucus also proposes $95 billion in new money for Community Development Financial Institutions (CDFI) ($11 billion), smaller sized and community banks ($17 billion), mid-sized banks ($17 billion) and the Economic Injury Disaster Loan (EIDL) program ($50 billion). Finally, $50 billion would be allocated toward an Employee Retention Tax Credit.

  • Boosters/Reducers. The Caucus proposal includes a measure that would automatically boost or reduce funding based on COVID-19 hospitalization metrics and vaccine progress. The “boosters” include would provide $120 billion for an automatic three-month extension of the PUA into February 2021, as well as $280 billion toward another round of stimulus checks in March 2021 if warranted. The “reducers” would dock a total of $200 billion spread out across the PPP ($60 billion), state and local aid ($130 billion) and rental assistance ($10 billion) if the aforementioned metrics are favorable.

  • Other Key Provisions. In addition to the policy buckets outlined above, the Caucus proposes $52 billion in additional funding to address the U.S. Postal Service ($15 billion), broadband needs ($12 billion), and agriculture assistance ($25 billion). The Caucus also suggests modifying existing statutes to allow for an extension of the 2020 Census, with the goal of ensuring an accurate count. Finally, $400 million would be available to states for “incremental election costs.”