COVID-19 Policy Update (March 31, 2020) - Employment and Workforce Wellbeing

Treasury Releases Details of Key CARES Act Loan Programs; Infrastructure Takes Center Stage in Phase 4 Relief Package

Shortly after Phase 3 of the Coronavirus response concluded on Friday, March 27 (see prior alert here), the U.S. Department of the Treasury and the Small Business Administration (SBA) today released details on the $349 billion Paycheck Protection Program established by the Coronavirus Aid, Relief and Economic Security (CARES) Act. The program will assist small businesses with payroll and other operating expenses, and the SBA will forgive the components of the loan proceeds that are used for payroll costs, rent, utilities and mortgage interest within the first eight weeks.

House Speaker Nancy Pelosi (D-CA) indicated that House Democrats have already started to draft a Phase 4 package. Speaker Pelosi signified that the initial goals of that draft would include increased funding for state and local governments and food aid, expanded family and medical leave, strengthened worker protections for first responders as well as significant infrastructure investment.

Speaker Pelosi today emphasized the need for bipartisan consensus on infrastructure priorities as the House crafts the Phase 4 legislation. President Trump echoed the call for inclusion of infrastructure in a tweet, noting that the Phase 4 package could reach up to $2 trillion.

The House is scheduled to be out until April 20, but Speaker Pelosi has indicated that the Phase 4 package could see a vote in the chamber when lawmakers return. However, timelines remain fluid and are subject to change as negotiations progress.

As public officials at all levels of government continue to escalate their responses to the pandemic, the latest actions and developments may be found below. Akin Gump will continue to provide regular policy developments related to COVID-19.

Stimulus Update: Treasury Releases Documents on Paycheck Protection Program and Guidance on Assistance to Airline Industry, House Begins Work on Phase 4

Phase 3: The Treasury Department today released documents on the $349 billion Paycheck Protection Program established by the CARES Act. Additional guidance documents will likely be released in the coming days. A top-line overview of the program is available here, and lender information may be found here. Additional information for borrowers is available here, and the application for borrowers can be found here.
Phase 3: The Treasury Department has also published guidance and resources for the economic stabilization programs created to assist eligible businesses in applying for payroll support to enable the continued payment of employee wages, salaries and benefits, and for loans pursuant to the CARES Act. Guidelines for payroll support to air carriers and contractors may be found here, while procedures and requirements for loans to air carriers and eligible businesses and national security businesses may be found here.
Phase 4: House Democrats have begun to draft a Phase 4 package to establish protections for health care systems and workers, and investment in infrastructure.
Phase 4: On March 31, President Trump called for a "big and bold" infrastructure component to the Phase 4 bill, arguing that the time is ripe for infrastructure investment due to low interest rates. He suggested a $2 trillion investment that is focused solely on creating jobs and rebuilding infrastructure.
Phase 4: Speaker Pelosi agreed that the Phase 4 bill should include an infrastructure component. She and House Energy and Commerce Committee Chairman Frank Pallone (D-NJ) have indicated that Phase 4 Democratic infrastructure priorities include modernizing the electric grid, ensuring safe drinking water and expanding Internet access.
Phase 4: Leadership of key congressional committees, including House Ways and Means Committee Chairman Richard Neal (D-MA), Senate Environment and Public Works Committee Chairman John Barrasso (R-WY) and House Transportation and Infrastructure Committee Chairman Peter DeFazio (D-OR) have also offered support for including infrastructure spending in the next bill. In March, Chairman Barrasso suggested attaching his surface transportation reauthorization bill to a COVID-19 package. Senate Appropriations Committee Chairman Richard Shelby (R-AL) similarly suggested including infrastructure spending in a COVID-19 stimulus bill, but neither proposal advanced.
Phase 4: Senate Majority Leader Mitch McConnell (R-KY) has cautioned against including partisan policy items in the Phase 4 package, noting that infrastructure could be a bipartisan goal.
Phase 4: It is likely that infrastructure legislation by House Democrats would include language to strengthen the Davis-Bacon Act and other worker protections as well as green provisions. House Democrats included an ambitious environment and climate change plan in their latest infrastructure proposal unveiled in January, and the House version of the Phase 3 COVID-19 bill would have imposed strict environmental requirements in order for airlines to receive federal assistance. Should Speaker Pelosi attempt to attach similar environmental and worker protection requirements to Phase 4 infrastructure language, the package's progress will likely face intense opposition from Senate Republicans.

White House Coronavirus Task Force Briefing Highlights

On Monday, March 30, the White House Coronavirus Task Force conducted a briefing from the White House Press Briefing Room. Highlights of the discussion include:

President Trump announced that as of Monday, more than one million Americans have been tested for COVID-19.
The Food and Drug Administration (FDA) has issued an emergency use authorization for a new point-of-care test developed by Abbott. FDA also authorized the use of a mask sterilization machine developed by Battelle.
Sandoz and Bayer have donated millions of doses of hydroxychloroquine and chloroquine, a potential COVID-19 treatment, to the Department of the Health and Human Services (HHS).
The USNS Comfort has arrived in New York City, and the Army Corps of Engineers is also working in the city to set up other alternate care sites.
HHS has delivered thousands of ventilators to New York State, and will be delivering additional ventilators in the coming days to Michigan, New Jersey, Illinois, Louisiana and Connecticut.
The President welcomed executives from Honeywell, MyPillow, Jockey International, Procter & Gamble and United Technologies to the White House to discuss the work their companies are doing to produce personal protective equipment and other supplies.
Centers for Medicare & Medicaid Services (CMS) Administrator Seema Verma announced new flexibilities to allow hospitals to create new treatment sites outside of their facility and to provide additional support to workers, such as child care, meals and laundry services.
In addition, certain restrictions on telehealth will be lifted to allow doctors to be reimbursed for phone calls with patients and to allow emergency departments to use telehealth.
The President said in response to a question that a nationwide stay-at-home order has been discussed but is "pretty unlikely" at this time. The President also stated that current travel restrictions will stay in place for April and that the Administration "may add a few more."
Dr. Anthony Fauci, Director of the National Institute of Allergy and Infectious Diseases (NIAID), said he expects that COVID-19 will return in the fall, given its high transmissibility.

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