Update from Washington, D.C.
Democrats Set to Unveil New COVID-19 Relief Bill
In the coming days, House Democrats are expected to unveil their proposal for the next phase of federal coronavirus relief. The forthcoming package – which they have dubbed “CARES 2” – is expected to rival the size of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act (PL 116-136).
In an extremely positive development for California’s counties, House Democratic leaders have indicated that the bill will include provisions designed to provide direct federal aid to all counties, with funds awarded on the basis of population. The legislation also will include a separate but equal fund for cities, as well as federal support for states, the District of Columbia, U.S. territories, and tribal governments. For her part, House Speaker Nancy Pelosi (D-CA) has called for as much as $1 trillion in assistance for states and local governments. The funding, which the speaker suggested could be used for both direct virus expenditures and revenue losses, would be available to cover expenses over a four-year timeframe.
It should be noted that the CARES Act provided direct funding – via the Coronavirus Relief Fund (CRF) – to local governments with populations over 500,000. As a result, only 16 of California’s 58 counties received direct CRF dollars. In response to this disparity, there have been a number of efforts on Capitol Hill focused on ensuring that jurisdictions at or below this threshold are able to receive their share of federal COVID-19 relief.
Recently, over 100 members of Congress, including 22 members of the California congressional delegation, sent correspondence to Speaker Pelosi and Minority Leader Kevin McCarthy (R-CA) requesting dedicated and robust federal coronavirus relief funding for counties of all sizes. In addition, Representatives Paul Cook (R-CA), Salud Carbajal (D-CA), Jimmy Panetta (D-CA), Doug LaMalfa (R-CA), and Jared Huffman (D-CA) sent a California-centric letter to congressional leaders. Specifically, the correspondence requests that the next COVID-19 measure establish a relief fund to appropriate specific aid to local governments under the 500,000 population threshold, establish a base of $1 million for such counties, and ensure that the funding is flexible.
With regard to the CRF funds provided to states under the CARES Act, the aforementioned California lawmakers were joined by Congressman Mike Thompson (D-CA) in requesting that Governor Gavin Newsom provide swift guidance to local governments with populations under the 500,000 population threshold regarding when and how they can access any transfer of funds from the state’s allocation.
Looking ahead, the House could vote on the Democratic plan as early as next week. While the prospects for advancing a CARES 2 package in the House appear quite good, the outlook in the Senate is much less clear. For his part, Senate Majority Leader Mitch McConnell (R-KY) has expressed his opposition to another massive influx of federal funding on the heels of the four previously passed COVID-19 relief bills. While he has indicated that he may be open to additional federal aid for hard hit states and localities, McConnell has signaled his opposition to providing assistance to states that, in his view, have made questionable budgetary decisions that predate the pandemic.
Senate Panel Unanimously Approves Bipartisan Water Infrastructure Legislation
On May 6, the Senate Environment and Public Works Committee unanimously approved two water infrastructure bills – America’s Water Infrastructure Act of 2020 (S 3591; AWIA 2020) and the Drinking Water Infrastructure Act of 2020 (S 3590). AWIA 2020, which would reauthorize the biennial Water Resources Development Act (WRDA), covers flood control, navigation, and other projects related to U.S. waterways, as well as water-related infrastructure policy.
Among other things, S 3591 would provide roughly $17 billion in new federal authorizations to invest in water infrastructure projects across the country, while also increasing water storage and reducing flood risks. With regard to streamlining, the bill would set a two year goal for the U.S. Army Corps of Engineers to complete its feasibility studies for potential projects. The legislation also includes provisions designed to help smaller rural communities leverage federal dollars and waive cost-share requirements so they can implement needed infrastructure projects.
S 3590, which reauthorizes Safe Drinking Water Act programs that support drinking water infrastructure, would provide approximately $1.25 billion to help communities ensure their drinking water is safe. In addition, the bill would require that 20 percent of the Drinking Water State Revolving Funds be used on grants, no interest loans, or debt relief to help public water systems. The legislation also would make it simpler for schools and childcare programs to test for lead in their drinking water.
While the coronavirus pandemic has underscored the demands for safe drinking water and has drawn more attention to hygiene, including increased hand-washing, it’s unclear how soon the chamber will consider either bill. For their part, EPW Committee Chairman John Barrasso (R-WY) and Ranking Member Tom Carper (D-DE) have called on the full Senate to consider the measure once the immediate health crisis has subsided. Across Capitol Hill, the House Transportation and Infrastructure Committee is still in the process of seeking input from members and is slated to begin advancement of its WRDA bill later this month.