News & Media
Coronavirus April 23 Update: In-Depth Details on the New Relief Package, the House Prepares to Vote Today, and Battle Lines Form Over Possible Fifth Package
Battle lines form over potential fifth coronavirus relief package
By week's end, the fourth coronavirus relief package is almost certain to become law.
But passing a fifth one, which lawmakers have already promised, is shaping up to be a far more costly and contentious undertaking.
President Donald Trump called this week for a new bill providing aid to state and local governments, infrastructure spending, a payroll tax cut and tax breaks for restaurants, sports and entertainment interests.
Senate Minority Leader Charles E. Schumer, D-N.Y., told reporters he would push for a "big, bold, broad" package that would include money for infrastructure, housing, election security, a "heroes fund" for frontline workers and first responders, a postal service rescue and "robust" state and local aid.
Speaker Nancy Pelosi, D-Calif., has her own wish list that includes extending enhanced unemployment insurance benefits past their current July 31 expiration, and another round of tax rebate checks. She also wants more money to protect the integrity of elections and let people vote by mail.
But Senate Majority Leader Mitch McConnell, R-Ky., made clear he intends to pump the brakes on any new major spending initiative. Within minutes of the Senate passing the fourth relief measure Tuesday (HR 266), the Kentucky Republican held a news conference to signal a go-slow approach amid concern about rising debt.
"Let's see what we're doing that's succeeding, what is not succeeding, what needs less and what needs more," McConnell said. "Let's weigh this very carefully because the future of our country, in terms of the amount of debt we're adding up, is a matter of genuine concern."
The current legislation, combined with aid packages enacted last month, is likely to add nearly $2.5 trillion to deficits over the coming decade, according to estimates from the Congressional Budget Office.
Treasury Secretary Steven Mnuchin tried to push back against debt concerns when pressed on the point in a Fox Business interview Wednesday.
"The good news is interest rates are very low, so the cost of carrying the debt to the American taxpayer is quite low," he said. More on the potential sticking points of the next package here.
The bottom line: Look for a longer, tougher fight in the next round of coronavirus relief.
House prepares to vote on latest coronavirus package
The House plans to reconvene Thursday to clear a $483 billion relief measure offering small-business loans, hospital aid and coronavirus testing.
The final vote caps two weeks of contentious negotiations. What began as a White House request for $251 billion to replenish a small-business loan fund nearly doubled in size as Democrats sought additional money for hospitals and testing.
The Senate passed the measure Tuesday on a voice vote in a nearly empty chamber. Trump has promised to sign the bill (HR 266)
The legislation would provide $310 billion to restart the Small Business Administration's so-called Paycheck Protection Program, which ran out of money late last week amid higher-than-expected demand for the forgivable loans designed to keep workers on the payroll while businesses are closed due to the pandemic.
A total of $60 billion of the PPP funding would be set aside for smaller lenders including state and federal credit unions and those serving communities where relationships with more established financial institutions that dominate the SBA program are scarce.
But the rejuvenated loan program funds could run out nearly as fast as the previously approved funding, which lasted about 14 days. That will likely put a timer on Congress' efforts to negotiate a larger, more sweeping aid package that Republicans, Democrats and the Trump administration all agree is needed.
"The first [round] went like hotcakes," said National Economic Council Director Larry Kudlow. "So the second one could go like hotcakes too."
Medical providers are seeking more health aid
Democrats notched a $100 billion victory Tuesday in the form of more money for medical providers and coronavirus testing in the latest relief package.
But the new funding falls short of the $318 billion the American Medical Group Association requested in a letter Tuesday to help health providers cover losses. A survey by the association found that 60 percent of independent doctor groups estimate they will deplete their financial reserves in two months, while one-third are providing uncompensated care for area hospitals.
And the bill does not appear to include two provisions rural and safety-net advocates were pushing -- a clarification ensuring public hospitals are eligible for small-business loans, and a reduction of a 10 percent interest rate in Medicare's advance payment loan program.
The chances of including changes to the interest rate for Medicare's advance payment loan program look promising in the next economic aid package. Sen. Jeanne Shaheen, D-N.H., said the administration agreed to support future efforts to modify the program's interest rate and payback timeline after bipartisan groups of lawmakers called for changes.
Providers -- including the Federation of American Hospitals, which represents for-profit institutions -- are lobbying for the change. Lauren Clason has the full story here.
The Trump administration, meanwhile, announced Wednesday how some of the $100 billion in new funding would be allocated to cover the uninsured and how much of the rest of the money will be distributed. Sandhya Raman has those details here.
Pentagon warns weapons programs face delays
The Defense Department expects the global coronavirus outbreak will delay its major weapons programs by about three months, the Pentagon's top weapons buyer said this week.
Ellen Lord, the Defense undersecretary for acquisitions and sustainment, did not name specific programs or companies but suggested the delays would be widespread.
"Domestically, we are seeing the greatest impacts in the aviation supply chain, shipbuilding and small space launch," Lord said.
The Pentagon has tried keeping its industrial base solvent and working during the pandemic, including increasing reimbursements for work that is not yet complete.
That change, Lord said, will start this week and provide $3 billion in increased cash flow to the industry. Andrew Clevenger has all the details here.