Flurry of Congressional Activity as Fiscal Year Draws to Close

By Jon Taets

ALEXANDRIA, Va.—The federal fiscal year ended last night at midnight, helping spur some last-minute congressional activity, both on funding the federal government and on a new round of COVID-19 related stimulus legislation.

Last week, the House of Representatives passed a short-term continuing resolution (CR) to fund the government until December 11. The House had passed 10 of the 12 total appropriations bills, but the Senate had acted on none of those, necessitating a short-term measure to avoid the government shutting down at midnight last night. With that deadline looming, the Senate acted yesterday evening to pass the CR and avoid such a scenario.

There also were some significant signs of progress in the seemingly revived negotiations between U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi (D-CA) over a new round of stimulus legislation in response to the economic crisis caused by the COVID-19 pandemic. The parties have been at a virtual standstill for months now since the House Democrats passed a $3.4 trillion package back in May, and the Senate Republicans attempted to pass a “skinny” relief package in early September.

Secretary Mnuchin and Speaker Pelosi met in person in the Speaker’s office yesterday afternoon, and both indicated they made significant progress.

Last Friday, House Democrats released a slimmed down version of their original package. They adjusted the length of time some of the included programs have to run in order to lower the price tag from $3.4 trillion to $2.2 trillion but did not change any of the substance of their original package.

Some of what is included in that package includes:

• A renewed Paycheck Protection Program available to businesses with fewer than 200 employees who have seen at least a 25% revenue drop in any quarter this year compared with the same quarter in 2019
• Streamlined loan applications and forgiveness terms for the PPP
• Reinstatement of the $600 per week pandemic unemployment insurance program through January
• Enhancements to the new Employee Retention Tax Credit
• New direct payments of $1,200 per adult and $500 per child to most taxpayers
• $436 billion in funds for state and local governments
• $75 billion for coronavirus testing, contact tracing and isolation measures
• $28 billion for vaccine procurement and distribution
• Specific programs for the airline industry and for small independent restaurants

One of the top legislative priorities for NACS was omitted from the package—liability protections from COVID-19 related lawsuits for businesses who acted responsibly during the crisis.

The House Democrats’ bill includes a provision requiring the Occupational Safety and Health Administration (OSHA) to issue federal guidance on safety measures that businesses must follow. Senate Republican Leader Mitch McConnell has said that he will not support a package unless it includes liability protections for businesses, schools and health-care providers. NACS continues to advocate for liability relief in the next package.

The House Democrats’ bill includes increased funds for the Supplemental Nutrition Assistance Program (SNAP) and language permitting SNAP recipients to purchase hot foods with their benefits during the public health emergency. NACS has been supportive of giving SNAP families more flexibility with their benefits during the COVID-19 crisis when many children across the country remain home from school.

Democrat party leaders intended to bring the legislation to the floor last night in an effort to formalize their negotiating position with Mnuchin and Republicans though shelved that plan and rescheduled the vote for today. That could be a sign of progress in negotiations between Pelosi and Mnuchin. Though Democratic leaders also indicated that if they do vote on their package that will be their last effort before leaving town until after the elections. For their part, both the White House and Senate Republicans have indicated that the $2.2 trillion price tag on the Democrat package remains too high. The White House has expressed willingness to go as high as $1.5 trillion in the past, but discussions continue.

Jon Taets is NACS director of government relations.

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