Lawmakers Negotiating Next Coronavirus Stimulus Package
Senate Republicans announced $1 trillion proposal for extended economic relief
Senate Republicans revealed a proposal for the next round of federal economic relief as the coronavirus pandemic continues. The $1 trillion package would include a reduced federal unemployment benefit, but lawmakers have yet to reach an agreement. Congressional Democrats want to extend the $600 weekly federal supplement that expired on July 31.
The Senate proposal, which is called the Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act, also includes business liability protection from COVID-19-related lawsuits, additional Paycheck Protection Program loans for certain qualifying businesses and a second round of stimulus checks. The package may be introduced through multiple bills sponsored by several senators.
"The sum of these efforts will be a strong, targeted piece of legislation aimed directly at the challenges we face right now," said Sen. Mitch McConnell, R-Ky. "America's fight continues, and so Congress' support for our people must continue as well."
Sen. Chuck Schumer, D-N.Y., called early drafts of the proposal "woefully inadequate." He noted that the proposal didn't include "rental assistance; hazard pay for essential workers; aid to state, local and tribal governments; or investments in communities of color."
We've rounded up articles and resources from SHRM Online and other trusted media outlets on coronavirus relief measures.
Federal Unemployment Benefits
Congress will likely extend the federal supplement to state unemployment benefits, but lawmakers have yet to agree on how much extra to provide. Currently, unemployed individuals can receive $600 a week in addition to their state benefits, but the federal supplement expires on July 31. House Democrats who want to extend the full federal supplement say it's helping the economy by providing full wage replacement for the average worker. Senate Republicans proposed a new policy that would replace about 70 percent of wages—which would reduce the federal supplement to about $200 a week. U.S. Treasury Secretary Steven Mnuchin has raised concerns that the $600 weekly payment may provide a disincentive for people to return to work if they are earning more in unemployment benefits than they did on the job.
(CNBC)
Liability Protections
McConnell said doctors and nurses should be protected from malpractice suits, and businesses, churches, charities and schools should also be shielded from liability. "There is one more essential element that ties schools, jobs and health care all together: Legal protections to prevent our historic recovery efforts from simply lining the pockets of trial lawyers," he said. "And we will make sure that school districts, colleges, churches, nonprofits and employers that obey official guidance do not have to delay reopening because they're afraid they'll spend 10 years in court." McConnell noted that liability protection would not extend to cases of gross negligence and intentional misconduct.
Additional Paycheck Protection Program Funds
Many small businesses have relied on Paycheck Protection Program (PPP) loans to keep workers on board during the coronavirus pandemic. Lawmakers recently extended the PPP loan application deadline to Aug. 8 and gave employers more flexibility when using the funds and applying for loan forgiveness. Republicans proposed to further extend the program. Sens. Susan Collins, R-Maine, and Marco Rubio, R-Fla., "have crafted a sequel to their historic and incredibly successful Paycheck Protection Program," McConnell said. Under one proposal, small businesses with 300 or fewer employees could receive a second forgivable PPP loan if their revenue declined by at least 50 percent because of the pandemic. Another proposal would offer a new, low-interest loan to small businesses.
(Forbes)
Democrats Want Hazard Pay for Essential Workers
The Senate proposal doesn't include mandatory hazard pay for essential workers, new funding for state and local governments, student debt relief or other proposals that congressional Democrats want to see in the next stimulus package. The U.S. House of Representatives passed the Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES) Act in May, which included these provisions. "Direct payments, unemployment insurance, rental and mortgage help, and food and student loan assistance, among other things, are essential to relieve the fear that many families are facing," said House Speaker Nancy Pelosi, D-Calif. Senate Republicans, however, vowed to block the HEROES Act. McConnell called the bill "a Democratic wish list" that would allow for "sweeping changes to election laws" and funding for cannabis studies. Congressional Republicans expect the new HEALS Act to serve as a starting point for negotiations.
(The Washington Post) and (SHRM Online)
CARES Act Helps Businesses Stay Afloat
On March 27, President Donald Trump signed into law the $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act to help struggling businesses and displaced workers during the COVID-19 pandemic. Among other programs, the CARES Act created a temporary pandemic unemployment assistance program through Dec. 31 to aid workers who are not usually entitled to unemployment benefits, such as independent contractors and self-employed individuals. The legislation also enhanced unemployment benefits by expanding eligibility and offering recipients an additional $600 a week through July 31. Businesses with fewer than 500 employees were also potentially eligible for emergency grants and loans to help make payroll and cover other employer expenses.
Federal Government Offers Emergency Paid Leave
On March 18, Trump signed the Families First Coronavirus Response Act (FFCRA) into law. The FFCRA provides paid emergency family leave in limited circumstances, as well as paid sick leave for people affected by COVID-19. In general, the emergency paid-leave provisions in the legislation apply to businesses with fewer than 500 employees, but there may be some exceptions available for small businesses and companies that employ health care workers.