Senate Majority Leader Mitch McConnell (R-KY) took to the Senate floor last week to introduce the HEALS Act, the Senate Republicans’ plan for a coronavirus relief package that would follow up the CARES Act passed earlier this year. “Our nation stands now at an important crossroads in this battle,” McConnell said. “We have one foot in the pandemic and one foot in the recovery. The American people need more help. They need it to be comprehensive. And they need it to be carefully tailored to this crossroads.”
The HEALS Act, an acronym that stands for Health, Economic Assistance, Liability Protection and Schools, would extend and modify several CARES Act provisions as well as provide new support for areas of critical need. The plan comes with a price tag around $1 trillion, noticeably smaller than the $3 trillion HEROES Act proposal passed by the House back in May.
Structurally, the plan is a composite of several different pieces of legislation, each targeting a different priority area, including unemployment benefits, liability protection, Paycheck Protection Program (PPP) continuation, funding for schools, and the development of “Rescue Committees,” among others. Below are links to the text of the individual bills that make up the HEALS Act plan:
- The American Workers, Families, and Employers Assistance Act
- The SAFE TO WORK Act
- The Continuing Small Business Recovery and Paycheck Protection Program Act
- The Safely Back to School and Back to Work Act
- The TRUST Act
- The Coronavirus Response Additional Supplemental Appropriations Act, 2020
- The Restoring Critical Supply Chains and Intellectual Property Act
- The Supporting Americas Restaurant Workers Act
The HEALS Act notably does not provide additional aid for state and local governments. However, it would provide some flexibility for previously allocated CARES Act dollars, allowing these funds to be spent past the original December 30, 2020 deadline and expanding allowable uses of relief payments to include lost revenue.
NARC will continue to advocate for regional priorities in upcoming coronavirus legislation. Most recently, NARC joined with local partners at the Association of Metropolitan Planning Organizations (AMPO) and the National Association of Development Organizations (NADO) on a letter urging congressional leaders to include local transportation funding needs in upcoming COVID-19 relief legislation. The full letter can be read here.
Below is a bill-by-bill summary highlighting the most significant items in each piece of the HEALS Act plan:
Key items: Unemployment extension, stimulus checks, and state and local funding flexibility
This bill, sponsored by Senate Finance Committee Chair Chuck Grassley (R-IA), would extend the current unemployment supplement provided by the CARES Act but at a lower benefit level. The bill would reduce the previous $600-per-week supplement down to $200 per week while states work on implementing a new supplement system that would be calculated to provide workers with no more than 70% of their previous wages.
The bill would also provide another round of stimulus checks in a manner like those distributed following the CARES Act. Those with incomes under $75,000 per year would receive a $1,200 direct payment and couples making less than $150,000 per year would receive a $2,400 payment. Additionally, those with dependents would receive $500 for each dependent regardless of that dependent’s age. Payments for those with higher incomes would be reduced, with payments phasing out for those making more than $99,000 as individuals and $198,000 as couples. Phaseouts would be set higher for those with dependents.
The bill would also provide some flexibility for state and local governments to spend previously allocated funds provided through the $150 billion Coronavirus Relief Fund (CRF) in the CARES Act. The HEALS Act does not provide additional aid for state and local governments.The provisions for increased flexibility of CRF funds include extending the date for these funds to be spent from December 30, 2020 to 90 days after the last day of the governments’ fiscal year 2021 as well as expanding allowable uses of relief payments to include lost revenue (up to 25% of their CRF allocation.)
Key item: Liability protections
This bill, led by Senator John Cornyn (R-TX), would provide businesses, schools, and healthcare providers that follow certain guidelines with a five-year liability shield against lawsuits regarding coronavirus. Republicans have indicated that they view liability protections as a critical inclusion in the next aid package while Democrats have voiced opposition on the grounds that this type of measure prioritizes protection for employers and corporations.
For more information, check out the bill text.
Key item: PPP continuation
Senate Committee on Small Business and Entrepreneurship Chairman Marco Rubio (R-FL) and Senator Susan Collins (R-ME) have introduced the Continuing Small Business Recovery and Paycheck Protection Program Act, which would permit some small businesses to receive another round of forgivable Paycheck Protection Program loans. The bill would streamline the forgiveness process and would create a $60 billion working capital fund for the hardest hit businesses.
Key item: Funding for schools and childcare
This bill from Senate Health and Education Committee Chairman Lamar Alexander (R-TN) would offer relief for some student loan borrowers (although it would not provide an extension for the student loan deferral provided by the CARES Act). Senator Alexander’s proposal also provides additional funding for schools and childcare providers including $105 billion for schools, $15 billion for childcare, $16 billion for testing, and $40 billion for vaccines and other health research. A section-by-section summary of the proposal can be found here.
Key item: Creation of Rescue Committees
This part of the HEALS Act comes from a bill that was initially proposed in 2019 by Senator Mitt Romney (R-UT) and is now being resurrected with some minor changes. The legislation would create “Rescue Committees” to research changes needed to ensure the solvency of government trust funds with outlays greater than $20 billion, including those for highways, Medicare hospital insurance, Social Security Disability Insurance, and Social Security Old-Age and Survivors Insurance.
A note on the Highway Trust Fund: Since the Highway Trust Fund has more than $20 billion in outlays it would be a recipient of a “rescue committee.” The bipartisan committee would be comprised of 12 members of the House and Senate and would work to create a strategy and accompanying legislation to put the trust fund on a path to solvency by June 1, 2021.
Key item: Funding for a range of health and economic aid programs
Senate Appropriations Chairman Richard Shelby (R-AL) sponsored this $306 billion spending proposal that would allocate funds for a variety of federal agencies and programs. There is some overlap between this funding proposal and some of the other elements of the HEALS Act plan, such as the $105 billion in funding for elementary, secondary, and post-secondary education.
Below are some of the largest funding recipients as well as other items of note for regions:
- $105 billion for elementary, secondary and post-secondary education
- $16 billion for COVID-19 testing
- $25 billion for hospitals
- $15 billion for childcare, including $5 billion through the Child Care and Development Block Grant (CCDBG) and $10 billion in a new flexible grant program
- $10 billion for airports
- $1.5 billion for the Low-Income Home Energy Assistance Program (LIHEAP), which is administered by county governments in 13 states
- $2.2 billion for Tenant-Based Rental Assistance (Section 8 vouchers)
Key item: Support for domestic PPP production
Senator Lindsey Graham (R-SC) introduced this proposal, which aims to move personal protection equipment (PPE) production to the United States from China using a $7.5 billion tax credit.
For more information read the full text of the bill.
Key item: Business meal tax deduction increase
This bill proposed by Senator Tim Scott (R-SC) would increase the tax deduction for business meals from 50% to 100%.
The bill’s full text can be found here.
For more reading on HEALS Act provisions regarding local government, check out the following resources from NARC and other local government partners: