Update from Washington, D.C.
April 30, 2020
Coronavirus Relief Discussions Continue As Members Eye Return to DC
Following last week’s passage of the Paycheck Protection Program and Healthcare Enhancement Act (PL 116-139), House and Senate leaders announced plans to reconvene in the nation’s capital the week of May 4 to begin talks on the next pandemic response and relief measure. House Democrats later reversed course after consulting with the Attending Physician of Congress, who warned that coronavirus infections in the DC metropolitan area were still on the rise. The lower chamber is now expected to return during the week of May 11. Across Capitol Hill, Senate Majority Leader Mitch McConnell (R-KY) has rejected calls to delay a return and will instead modify Senate routines in a manner designed to allow members to safely conduct business in person.
As negotiations commence on the next phase of the virus response, key members of Congress, as well as President Trump, have begun laying out their priorities. Of particular importance for California’s counties, Democratic congressional leaders have acknowledged the urgent need for more state and local fiscal stabilization funding. In fact, House Speaker Nancy Pelosi (D-CA) has called for as much as $1 trillion in assistance for state and local governments. The funding, which Pelosi suggested could be used for both direct virus expenditures and revenue losses, would help cover up to four years of expenses.
President Trump, after initially indicating support for addressing local government revenue shortfalls, has recently questioned whether the next relief package should include funding to “[bail] out poorly run states and cities.” Likewise, Majority Leader McConnell suggested that states be offered the opportunity to file for bankruptcy, rather than rely on Congress for COVID-19-related assistance. This topic will no doubt continue to be a major focal point ahead of the next relief bill. It should also be noted that while the first three coronavirus response measures were negotiated in a bipartisan fashion, familiar partisan divisions reemerged in talks on PL 116-139, potentially foreshadowing a more contentious debate in the coming weeks.
For its part, CSAC recently sent correspondence to the California congressional delegation requesting, among other things, direct federal fiscal relief for counties. Specifically, CSAC is urging lawmakers to include the following:
- $5 billion in fiscal relief funds to California’s counties
- Funding must be available to mitigate direct and indirect COVID-19 costs, revenue losses, and temporary expansion of benefits
- Three-year expenditure authority on all fiscal relief funding
- Maximum flexibility on the use of Coronavirus Relief Funds provided under the CARES Act
The CSAC letter can be accessed here.
Lawmakers Urge Leaders to Provide SBA Assistance to State-Legal Cannabis Businesses
Representatives Earl Blumenauer (D-OR) and Ed Perlmutter (D-CO) recently introduced legislation – the Emergency Cannabis Small Business Health and Safety Act (HR 6602) – that would provide state-legal cannabis businesses with access to coronavirus relief funds, specifically the Paycheck Protection Program, the Economic Injury Disaster Loans (EIDL) program, and the EIDL Emergency Grants program. The state-legal cannabis industry is currently prohibited from participating in loan programs through the Small Business Administration. HR 6602 can be accessed here.
In addition to the legislation, Blumenauer was joined by Representatives Barbara Lee (D-CA), Don Young (R-AK), and Tom McClintock (R-CA) in spearheading a bipartisan Dear Colleague letter to House leaders. The correspondence, which can be found here, urges Speaker Pelosi and Minority Leader Kevin McCarthy (R-CA) to include provisions in the next COVID-19 relief bill that would allow state-legal cannabis businesses and the businesses who work with this industry to access SBA’s emergency loan programs. Senators Jacky Rosen (D-NV) and Ron Wyden (D-OR) led a similar effort to Senate leaders, which can be viewed here.