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DC Acts to Provide Additional Funds to PPP and Hospitals

L . Thomas Block
L . Thomas Block
Washington Policy Strategist
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This afternoon the bipartisan leaders of Congress and the White House agreed to Phase 4 legislation in the nation’s effort to deal with the coronavirus crisis.  The legislation is expected to pass the Senate today under a Unanimous Consent (UC) agreement and will then be sent to the House.  As with Phase 3 a small group of conservative Republicans are insisting on a vote and will object to passage under a UC agreement.  There are also reports that some of the progressive Democrats may object to the bill, but a huge bipartisan majority will vote to pass the bill in the House.

When Representative Massie demanded a vote on the Phase 3 legislation he announced that he objected to the UC, and made a point of order that a quorum, 50% + 1 of the House was not in attendance and exercised his parliamentary right to demand a quorum.  Both Republican and Democratic leaders worked very diligently to get 218 Members to DC to create a quorum and met the parliamentary rule to consider a bill.  Under the rules of the House a Member can demand a roll call vote but since many members didn’t make it back to DC the leaders wanted a voice vote. To get a voice vote one-fifth of the members (44) must agree and the leadership persuaded all but a few members to stay seated so that 44 members didn’t ask for a recorded roll call vote, and Phase 3 passed with a quorum, but on a voice vote.  I anticipate the same will happen on Thursday when the House passes today’s compromise,

The bill has $310 billion of new money for the Payroll Protection Plan, and $60 billion for SBA disaster loans that don’t have some of the restrictions that the PPP program has created in order to turn the loan into a grant. Agriculture will be defined as a small business, and some of the money will be earmarked for banks with less than $50 billion in assets. $75 billion is added to the $100 billion in the original CARES Act for hospitals and $25 billion is included for testing ranging from grants to states and CDC and NIH for research and development.

Congress is likely to come back on May 5 and at that time they will consider additional coronavirus related legislation including aid to state and local governments.  At some point as businesses open and people start to go back to work Congress is likely to move from crisis relief to economic stimulus.  I would expect a significant stimulus bill as early as June.

Tom

Section by Section summaries attached

Summary Hospital And Testing FINAL 4.21.20Download
Paycheck Protection Program Increase Act Of 2020 Section By SectionDownload

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L . Thomas Block
L . Thomas Block
Washington Policy Strategist
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