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COVID-19: Federal Update (6/29)

Quick Takes

— ACA STABILIZATION BILL HITS HOUSE FLOOR. The package aims to shore up health insurance subsidies, expand Medicaid eligibility, and institute direct negotiations between the Department of Health and Human Services (HHS) and drug manufacturers on pharmaceuticals covered by Medicare Parts B and D.

— LAWMAKERS PICK UP CONSIDERATION OF CREDIT REFORM BILL. The bill would reform the Fair Credit Reporting Act (FCRA) to promote "fair and accurate" credit reporting.

— FILIBUSTER REFORM GAINS STEAM WITH DEMOCRATS. Democrats are stepping up talks about reforming or abolishing the filibuster if they win back the Senate and White House in November.

— HHS SECURES NEW SUPPLY OF KEY COVID-19 TREATMENT. More than 500,000 doses of the antiviral remdesivir will be available to U.S. hospitals from Gilead Sciences through September.

Capitol Hill Update

— ACA STABILIZATION BILL HITS HOUSE FLOOR. House lawmakers will convene today as the lower chamber prepares to vote on a package of reforms to the Affordable Care Act (ACA). The bill aims to shore up health insurance subsidies, expand Medicaid eligibility, and institute direct negotiations between the Department of Health and Human Services (HHS) and drug manufacturers on pharmaceuticals covered by Medicare Parts B and D. The drug pricing provisions mirror the negotiation and international price index provisions passed by the House in H.R. 3, the Elijah E. Cummings Lower Drug Costs Now Act and appear intended to offset the costs of the ACA improvement legislation. CBO estimated that Title I of that bill, which is contained in this new legislation, would save nearly $456 billion over ten years. While the bill is expected to pass the House, it has no prospects of being taken up by the Senate. For more, click here to read TRP's analysis of this measure.

— LAWMAKERS PICK UP CONSIDERATION OF CREDIT REFORM BILL. In addition to the ACA reform legislation, Members will also resume consideration of a bill sponsored by Reps. Josh Gottheimer (D-NJ) and Tom Reed (R-NY) that seeks to reform the Fair Credit Reporting Act (FCRA) to promote "fair and accurate" credit reporting. Specifically, the Protecting Your Credit Score Act would: (1) create an online portal that provides consumers with access to free credit reports and scores; (2) give the Consumer Financial Protection Bureau (CFPB) with statutory authority to supervise credit reporting agencies; and (3) mandate that credit reporting agencies provide information to consumers surrounding the procurement of a credit report, among other things. While the bill is expected to pass the lower chamber later today, it faces an uncertain path in the GOP-controlled Senate during the remainder of this Congress. Additionally, the House will also Congressional Review Act resolution that seeks to overturn the Trump administration's regulation pertaining to the Community Reinvestment Act.

— SENATE TAKES UP FY 2021 NDAA. Senators will convene this afternoon to pick up consideration of the upper chamber's FY 2021 NDAA (text; summary; report; tables). Majority Leader Mitch McConnell (R-KY) filed a vote to move onto the $740 billion annual defense bill after Senate Democrats blocked a procedural vote on the Senate GOP's police reform legislation last week. The Senate will look to pass the NDAA prior to the July 4 district work period next week, however, debate on certain amendments— particularly related to renaming bases that honor Confederate military leaders — could push the vote later into the month. Meanwhile, House lawmakers on the Armed Services Committee will meet to markup the lower chamber's version of the NDAA this week.

Washington Insider: What We’re Reading

Democrats are stepping up talks about reforming or abolishing the filibuster if they win back the Senate and White House in November. The renewed discussions are being spurred by Sen. Jeff Merkley (D-Ore.), an outspoken liberal who has long championed revamping the procedural tactic that Democrats see as a serious obstacle to passing legislation and confirming nominees.

The Supreme Court is leaving in place a decision that rejected environmental groups’ challenge to sections of wall the Trump administration is building along the U.S. border with Mexico. The high court on Monday declined to hear an appeal involving construction of 145 miles (233 kilometers) of steel-bollard walls along the border in Arizona, California, New Mexico and Texas.

When House Democrats released a massive $1.5 trillion infrastructure bill covering everything from schools to broadband to wastewater on June 22, Republicans were dismayed — and not just because they’d had little input on the package. Instead, they say, the 2,309-page measure ignores previous agreements between Republicans and Democrats on items that both sides had lauded just months ago. Key among those agreements: the October 2019 House Transportation and Infrastructure Committee’s bipartisan vote to advance a bill that would reauthorize the Clean Water State Revolving Fund. That measure included $14 billion for the Clean Water State Revolving Fund — the primary vehicle for the federal government to steer money to wastewater infrastructure.

The Senate on Thursday passed a sweeping sanctions bill targeting China’s violations of Hong Kong’s independence, a week after the White House helped stall the legislation. The bill, which imposes mandatory sanctions on individuals, entities and banks that enable China’s encroachments through a new national security law, was adopted unanimously after Sens. Chris Van Hollen (D-Md.) and Pat Toomey (R-Pa.) secured an agreement with the White House. The senators also allowed for their measure to pass alongside a resolution by Sen. Josh Hawley (R-Mo.) condemning Beijing’s national security law that cracks down on Hong Kong’s sovereignty.

COVID-19: What We’re Hearing

— 'CARES 2.0' STATE OF PLAY. While Senate Majority Leader Mitch McConnell (R-KY) has indicated that Congress will likely need to pass another round of COVID-19 relief legislation, Republicans are pushing for a more narrowly-targeted relief package following better-than-expected jobs numbers for the month of May, and the White House would prefer to wait and see the June labor numbers before negotiating with Congress in earnest. Conversely, Congressional Democrats are remaining steadfast on their push for another robust stimulus package. As the public health emergency continues to unfold, lawmakers are mulling over several policy options for the next round of legislation, including:

  • Liability. Leader McConnell and Sen. John Cornyn (R-TX) are working on legislation that would limit the liabilities of health care workers, business owners, and employees from lawsuits pertaining to the COVID-19 outbreak. Leader McConnell emphasized that any future COVID-19 relief efforts must include these protections in order for the Senate to consider additional relief legislation.

    • House Democratic leadership appears open to negotiating a deal on liability protections. House Majority Leader Steny Hoyer (D-MD) emphasized that these protections must not undermine the health and rights of workers, but indicated that the issue is open for further discussion and negotiation.

  • Unemployment Reform. Senate Republicans are spearheading efforts on reforming the enhanced unemployment benefits so that generous payments approved in the CARES Act don’t become an obstacle to rehiring workers.

    • A key option on the table includes enhancing a tax credit that would give employers a tax break for keeping workers on the payroll.

  • State and Local Governments. Funding for state and local governments is a key pillar of the Democrats' next stimulus bill. While there is bipartisan agreement that more needs to be done to help stymie economic hardships for these entities, allocating additional funding has become a divisive issue within the Republican conference.

    • It appears likely that some Senate Republicans — particularly those who are up for re-election — would coalesce behind a bipartisan proposal that would provide additional funding and flexibility to address needs at the state and local level.

  • PPP. Following Congressional passage of the Paycheck Protection Program Flexibility Act, Lawmakers are eyeing further reforms to the PPP.

    • Prior to Senate passage of H.R. 7010, Sens. Ron Johnson (R-WI) and Mike Lee (R-UT) — who had expressed concerns and opposition to the House-passed bill secured a letter from key Small Business Committee members in both chambers clarifying that the intent of the legislation is not to reauthorize the program through the end of the year without additional reforms.

    • Small Business Committee Chairman Marco Rubio (R-FL) and Sen. Susan Collins (R-ME) have also indicated they are working on a technical change to the legislation that would ensure businesses can have their loans forgiven in some form regardless of whether they reach the 60 percent threshold.

    • Additionally, there has been a bipartisan push in Congress to expand PPP eligibility to 501(c)6 organizations and other currently ineligible nonprofits in the next round of COVID-19 relief legislation.

  • Surprise Billing. Reports out of the Trump administration suggest that the White House will push for action on surprise medical bills ahead of the next round of relief legislation.

    • During the CARES Act negotiations, Chairman Frank Pallone (D-NJ) and Senate Health, Education, Labor, and Pensions (HELP) Chairman Lamar Alexander (R-TN) were actively trying to tack their surprise billing legislation onto the package.

  • Budget Reform. A bipartisan group of House lawmakers penned a letter to Speaker Nancy Pelosi (D-CA) and Minority Leader Kevin McCarthy (R-CA) calling for provisions that address the federal debt and trust funds for Medicare and Social Security to be included in the next round of COVID-19 relief legislation.

APPROPRIATIONS UPDATE. As the COVID-19 pandemic continues to upend the Congressional schedule, lawmakers are adjusting their expectations for consideration of fiscal year (FY) 2021 spending bills.

  • House. Chairwoman Nita Lowey (D-NY) officially announced the House Appropriations Subcommittee markup schedule for the week of Jul. 6.

    • Jul. 6: State & Foreign Operations, Agriculture, Military Construction-VA

    • Jul. 7: Homeland Security, Interior-Environment, Legislative Branch, Energy-Water, Labor-HHS-Education

    • Jul. 8: Commerce-Science-Justice, Transportation-Housing and Urban Development, Financial Services and General Government, Defense.

  • Senate. Chairman Richard Shelby (R-AL) is delaying the forthcoming markups ahead of the July 4 recess amid partisan disagreements over COVID-19 relief and police reform amendments that Democrats want to offer.

    • When the Appropriations Committee begins its markup process, appropriators will look to skip subcommittee markups for seven out of the FY 2021 spending bills, going straight to full committee markups instead. Senators on the panel are also expected to vote on the 302(b) funding allocations for each of the 12 bills ahead of the forthcoming markups.

COVID-19 Legislative & Regulatory Trackers


— HHS SECURES NEW SUPPLY OF KEY COVID-19 TREATMENT. The Department of Health and Human Services (HHS) announced an agreement to secure more than 500,000 doses of the antiviral remdesivir for U.S. hospitals from Gilead Sciences through September.


— FEDERAL RESERVE PUBLISHES STRESS TEST, COVID-19 SENSITIVITY RESULTS. The Federal Reserve published results of its stress tests for 2020 and additional sensitivity analyses that the Board conducted in light of the COVID-19 pandemic.

— CMS ISSUES SPECIAL TRENDS REPORT ON HEALTHCARE.GOV SIGNUPS DURING COVID-19. The Centers for Medicare and Medicaid Services (CMS) published a special trends report outlining the number of individuals who signed up for coverage on through a special enrollment period (SEP) during the pandemic.

— CMS TO END BLANKET WAIVER REQUIRING NURSING HOMES TO SUBMIT STAFFING DATA. CMS announced plans to end the emergency blanket waiver requiring all nursing homes to resume submitting staffing data through the Payroll-Based Journal (PBJ) system by August 14, 2020.

— HHS LAUNCHES PROGRAM AIMED AT FIGHTING COVID-19 IN MINORITY, RURAL COMMUNITIES. The Department of Health and Human Services (HHS) announced a new three-year, $40 million program with the Morehouse School of Medicine to deliver COVID-19 information to minority and rural communities in an effort to combat the pandemic in these areas.

— CFPB ISSUES INTERIM FINAL RULE ON LOSS MITIGATION OPTIONS FOR HOMEOWNERS. The Consumer Financial Protection Bureau (CFPB) issued an interim final rule that will allow borrowers who have experienced financial hardships due to COVID-19 to delay payments even if they have only a limited amount of information on the homeowner.

— NEW FED EXAMINER GUIDANCE SEEKS TO PROMOTE FLEXIBILITY. The Federal Reserve issued new examiner guidance that seeks to promote consistency and flexibility in the supervision and examination of financial institutions that have been affected by the COVID-19 pandemic.

— CMS RELEASES COVID-19 DATA, ISSUES CALL TO ACTION ON VALUE-BASED CARE. CMS released new data on the COVID-19 outbreak that highlights racial and socioeconomic divides among Medicare beneficiaries who were infected. As a result of this data, the agency is calling for a renewed national commitment to value-based care.

— SBA, TREASURY REACH AGREEMENT ON PPP TRANSPARENCY. The Small Business Administration (SBA) and Treasury Department reached an agreement with Congress to disclose information regarding recipients of the Paycheck Protection Program (PPP). The names of businesses who received loans ranging from $150,000 to $10 million will be disclosed publicly by the federal government.

— SBA LAUNCHES TOOL TO CONNECT BUSINESSES WITH CDFIS AND SMALL ASSET LENDERS. SBA launched an online tool for small businesses and non-profits to be matched with Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), Farm Credit System lenders, Microlenders, as well as traditional smaller asset size lenders in the Paycheck Protection Program (PPP).

— SBA REOPENS EIDL AND EIDL ADVANCE PROGRAM. The SBA announced that it has reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19.

— HHS ANNOUNCES $25 BILLION IN RELIEF FUNDING FOR MEDICAID PROVIDERS, SAFETY NET HOSPITALS. HHS announced the allocation of $25 billion from the Provider Relief Fund, including $15 billion for Medicaid and CHIP providers, as well as $10 billion for safety net hospitals. TRP's comprehensive analysis of the COVID-19 provider relief fund can be read here.

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