COVID-19 Debates Stall Again

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Over the last several months, we have all been watching the back-and-forth negotiations on a COVID relief package. And, as Democrats and Republicans haggle over specifics of the current package iteration, the prospects of a government shutdown have been pushed back yet another week. On December 11, Congress passed another Continuing Resolution extending funding to December 18. And with a government shutdown avoided – for now – lawmakers can focus on ironing out provisions to include in the newly proposed COVID-19 relief packages and a long-term government funding package.

This week, a bipartisan group of lawmakers released the details of their $908 billion COVID-19 relief package. NMHC and NAA have been working closely with members of the bipartisan group to ensure that our priorities were addressed, including additional direct assistance for families and individuals in need of financial assistance in the form of additional unemployment and rental assistance. In addition, we have continued to make our case that protracted eviction moratoriums are not a long-term solution to the pandemic. As a result, the bipartisan package, the Emergency COVID Relief Act of 2020, includes the following provisions:

$160 billion in support for state, local and tribal governments;
an expansion of the federal supplemental insurance benefits of $300 per week for 16 weeks;
$300 billion to further fund the Small Business Association’s Paycheck Protection Program, including funding to allow “the hardest-hit small businesses to receive a second forgivable PPP loan”;
$12 billion in CDFI / MDI community lender emergency investments to help low-income and minority communities withstand the downturn;
$25 billion in rental assistance to states and local governments through the Coronavirus Relief Fund paired with an extension of a federal eviction moratorium through January 31; and
$6.25 billion for State Broadband Deployment and Broadband Connectivity grants.

Countering this legislation, Treasury Secretary Mnuchin proposed a $916 billion package. In a statement, Secretary Mnuchin said that the plan would be financed with $140 billion in unused funds from Paycheck Protection Program and $429 billion from the Treasury Department. Notably, the Mnuchin plan does not include an extension of the expanded unemployment benefits but instead proposes another round of $600 stimulus checks. His plan also includes billions in state and local aid and liability protections. While a detailed outline of this proposal has yet to be released, here is a list of known package specifics:

A “robust” liability shield;
$160 billion for states and localities; and
$164 billion for direct payments to households worth up to $600 per person but no additional federal supplemental unemployment benefits (though emergency unemployment programs set to expire at the end of the year would be extended).

Three roadblocks on a package coming together have emerged in the days following these releases: liability protections, state and local funding and, now, stimulus checks. The bipartisan group is planning to continue negations on their $908 billion package over the weekend. That group includes members such as Senators Mitt Romney (R-UT), Susan Collins (R-ME), Senator Mark Warner (D-VA), Senator Joe Manchin (D-WV) and others. It was reported yesterday that the bipartisan group came to a consensus on a formula for distributing state and local funds, but agreement continues to allude the group on liability protections. Raising concerns related to the omission of liability protections, Senate Majority Leader Mitch McConnell (R-KY) and other key Republicans have stated that they cannot get on board with the package. Speaker Pelosi and other key Democrats have drawn their line in the sand as well. They’ve rejected the Administration’s proposal due to its lack of unemployment benefits.

Despite the disappointing current state of play, NMHC and NAA will continue to stay engaged over the weekend and next week in an effort to get a much-needed stimulus package over the finish line and to ensure that our priorities on the government funding bill are addressed.

COVID-19 Debates Stall Again

December 11, 2020

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