thefiscaltimes--2020-05-18--Fed Chief Again Nudges Congress to Do More

Federal Reserve Chair Jerome Powell again cautioned that the central bank and Congress may need to do more to prevent longer-term economic damage from the coronavirus pandemic — and that concerns about the massive federal budget deficit shouldn ’ t prevent such action .
In an interview with “ 60 Minutes ” that aired Sunday night but was conducted last Wednesday — the same day he gave a market-rattling speech in which he said that additional fiscal stimulus “ could be costly but worth it ” — Powell reiterated that the Fed and Congress have both acted aggressively .
“ @ @ @ @ @ @ @ and done it very quickly .
There is no precedent in post-World War II American history that 's even close to what Congress has done .
They have passed $ 3 trillion in stimulus , which is 14 % of GDP .
It is vastly larger than anything they 've ever done , ” Powell said .
He then added : “ And the question is , will it be enough ?
And I do n't think we know the answer to that .
It may well be that the Fed has to @ @ @ @ @ @ @ Congress has to do more .
And the reason we 've got to do more is to avoid longer run damage to the economy .
If we let people be out of work for long periods of time , if we let businesses fail unnecessarily , waves of them , there 'll be longer term damage to the economy .
The recovery will be slower .
The good news is we can avoid that by providing more support now.
” Asked what kind of support lawmakers should provide , Powell offered broad suggestions @ @ @ @ @ @ @ I may , that policies that help businesses avoid avoidable insolvencies and that do the same for individuals -- keep workers in their homes , keep them paying their bills.
” He also said that additional aid to state and local governments is “ something that deserves a careful look.
” Powell also again shot down the idea of lowering interest rates into negative territory , questioning whether they boost economic activity : “ I continue to think , and my colleagues on the Federal Open Market Committee continue to think that negative @ @ @ @ @ @ @ or useful policy for us here in the United States.
” White House adviser says another stimulus bill may not be needed : Powell ’ s carefully worded comments — widely seen as urging lawmakers to provide more support for the economy — place the Fed chair , a Republican , squarely in the middle of a brewing political battle .
House Democrats last week pushed through a $ 3 trillion coronavirus relief package .
Republicans , including President Trump , by and large say they prefer to “ pause ” and assess @ @ @ @ @ @ @ in relief funds already provided .
White House economic adviser Kevin Hassett said Monday that another phase of coronavirus legislation may not be necessary at all .
“ If the economy continues the momentum that we ’ re beginning to see over the last couple of weeks of data , then I think that one might conclude that the stimulus we ’ ve already passed is enough , ” Hassett told reporters Monday .
“ But if that doesn ’ t happen , we ’ re really learning everyday a little bit more @ @ @ @ @ @ @ ” Hassett reportedly acknowledged that the Paycheck Protection Program for loans to small business may need additional funding and that the government may still need to provide more help to hard-hit business sectors .
But his comments stand in contrast to the Fed chair ’ s warning that , while the economy will likely begin to recover over the second half of the year , the unemployment rate could hit 25 % and the economic pain “ could stretch through the end of next year.
” What ’ s next : Powell will @ @ @ @ @ @ @ Banking Committee Tuesday morning .
“ Expect senators on the banking panel to try eliciting more support for their preferred view when he appears before them , ” The Washington Post ’ s Tory Newmyer writes .

Federal Reserve Chair Jerome Powell again cautioned that the central bank and Congress may need to do more to prevent longer-term economic damage from the coronavirus pandemic — and that concerns about the massive federal budget deficit shouldn’t prevent such action.
In an interview with “60 Minutes” that aired Sunday night but was conducted last Wednesday — the same day he gave a market-rattling speech in which he said that additional fiscal stimulus “could be costly but worth it” — Powell reiterated that the Fed and Congress have both acted aggressively.
“The Congress has done a great deal and done it very quickly. There is no precedent in post-World War II American history that's even close to what Congress has done. They have passed $3 trillion in stimulus, which is 14% of GDP. It is vastly larger than anything they've ever done,” Powell said.
He then added: “And the question is, will it be enough? And I don't think we know the answer to that. It may well be that the Fed has to do more. It may be that Congress has to do more. And the reason we've got to do more is to avoid longer run damage to the economy. If we let people be out of work for long periods of time, if we let businesses fail unnecessarily, waves of them, there'll be longer term damage to the economy. The recovery will be slower. The good news is we can avoid that by providing more support now.”
Asked what kind of support lawmakers should provide, Powell offered broad suggestions: “I would say, if I may, that policies that help businesses avoid avoidable insolvencies and that do the same for individuals -- keep workers in their homes, keep them paying their bills.” He also said that additional aid to state and local governments is “something that deserves a careful look.”
Powell also again shot down the idea of lowering interest rates into negative territory, questioning whether they boost economic activity: “I continue to think, and my colleagues on the Federal Open Market Committee continue to think that negative interest rates is probably not an appropriate or useful policy for us here in the United States.”
White House adviser says another stimulus bill may not be needed: Powell’s carefully worded comments — widely seen as urging lawmakers to provide more support for the economy — place the Fed chair, a Republican, squarely in the middle of a brewing political battle. House Democrats last week pushed through a $3 trillion coronavirus relief package. Republicans, including President Trump, by and large say they prefer to “pause” and assess the effectiveness of the trillions of dollars in relief funds already provided.
White House economic adviser Kevin Hassett said Monday that another phase of coronavirus legislation may not be necessary at all. “If the economy continues the momentum that we’re beginning to see over the last couple of weeks of data, then I think that one might conclude that the stimulus we’ve already passed is enough,” Hassett told reporters Monday. “But if that doesn’t happen, we’re really learning everyday a little bit more about how the economy responds to this.”
Hassett reportedly acknowledged that the Paycheck Protection Program for loans to small business may need additional funding and that the government may still need to provide more help to hard-hit business sectors. But his comments stand in contrast to the Fed chair’s warning that, while the economy will likely begin to recover over the second half of the year, the unemployment rate could hit 25% and the economic pain “could stretch through the end of next year.”
What’s next: Powell will appear (remotely) before the Senate Banking Committee Tuesday morning. “Expect senators on the banking panel to try eliciting more support for their preferred view when he appears before them,” The Washington Post’s Tory Newmyer writes.


thefiscaltimes--2020-05-18--Medicaid Providers at the End of the Line for Federal COVID Funding

Casa de Salud , a nonprofit clinic in Albuquerque , New Mexico , provides primary medical care , opioid addiction services and non-Western therapies , including acupuncture and reiki , to a largely low-income population .
And , like so many other health care providers that serve as a safety net , its revenue — and its future — are threatened by the COVID-19 epidemic .
“ I ’ ve been working for the past six weeks to figure out how to keep the doors open , ” said the clinic ’ s executive director , Dr. Anjali Taneja .
@ @ @ @ @ @ @ 80 % drop in patient care , which has completely impacted our bottom line.
” In March , Congress authorized $ 100 billion for health care providers , both to compensate them for the extra costs associated with caring for patients with COVID-19 and for the revenue that ’ s not coming in from regular care .
They have been required to stop providing most nonemergency services , and many patients are afraid to visit health care facilities .
But more than half that money has been allocated by the Department of Health @ @ @ @ @ @ @ of it so far has gone to hospitals , doctors and other facilities that serve Medicare patients .
Officials said at the time that was an efficient way to get the money beginning to move to many providers .
That , however , leaves out a large swath of the health system infrastructure that serves the low-income Medicaid population and children .
Casa de Salud , for example , accepts Medicaid but not Medicare .
State Medicaid directors say that without immediate funding , many of the health facilities that serve Medicaid patients @ @ @ @ @ @ @ month ago , bipartisan Medicaid chiefs wrote the federal government asking for immediate authority to make “ retainer ” payments — not related to specific care for patients — to keep their health providers in business .
“ If we wait , core components of the Medicaid delivery system could fail during , or soon after , this pandemic , ” wrote the National Association of Medicaid Directors .
So far , the Trump administration has not responded , although in early April it said it was “ working rapidly on additional targeted @ @ @ @ @ @ @ those who predominately serve Medicaid patients .
In an email , the Centers for Medicare & Medicaid Services said officials there will “ continue to work with states as they seek to ensure continued access to care for Medicaid beneficiaries through and beyond the public health emergency.
” CMS noted that states have several ways of boosting payments for Medicaid providers , but did not directly answer the question about the retainer payments that states are seeking the authority to make .
Nor did it say when the funds would start to flow @ @ @ @ @ @ @ get funding from Medicare .
“ This needs to be addressed urgently , ” said Joan Alker , executive director of Georgetown University ’ s Center for Children and Families in Washington , D.C. “ We are concerned about the infrastructure and how quickly it could evaporate.
” In the administration ’ s explanation of how it is distributing the relief funds , Medicaid providers are included in a catchall category at the very bottom of the list , under the heading “ additional allocations.
” “ To not see anything substantive coming @ @ @ @ @ @ @ to injury , ” said Todd Goodwin .
He runs the John F. Murphy Homes in Auburn , Maine , which provides residential and day services to hundreds of children and adults with developmental and intellectual disabilities .
He said his organization — which has already furloughed almost 300 workers and spent more than $ 200,000 on COVID-related expenses including purchases of essential equipment such as masks and protective equipment that will not be reimbursable — has not been eligible for any of the various aid programs passed by Congress .
It gets @ @ @ @ @ @ @ public school systems .
The organization has tapped a line of credit to stay afloat .
“ But if we ’ re not here providing these services , there ’ s no Plan B , ” he said .
Even providers who largely serve privately insured patients are facing financial distress .
Dr. Sandy Chung is CEO of Trusted Doctors , which has about 50 physicians in 13 offices in the Northern Virginia suburbs around Washington , D.C. She said about 15 % of its funding comes from Medicaid , but the drop @ @ @ @ @ @ @ left the group “ really struggling.
” “ We ’ ve had to furlough staff , had to curtail hours , and we may have to close some locations , ” she said .
Of special concern are children because Medicaid covers nearly 40 % of them across the county .
Chung , who also heads the Virginia chapter of the American Academy of Pediatrics , said that vaccination rates are off 30 % for infants and 75 % for adolescents , putting them and others at risk for preventable illnesses .
The @ @ @ @ @ @ @ that with the economy in free fall , more people will qualify for Medicaid coverage in the coming weeks and months .
“ But if you don ’ t have providers around anymore , then you will have a significant mismatch , ” she said .
Back in Albuquerque , Taneja is working to find whatever sources of funding she can to keep the clinic open .
She secured a federal loan to help cover her payroll for a couple of months , but worries what will happen after that .
“ It @ @ @ @ @ @ @ survived 15 years in this health care system , just to not make it through COVID , ” she said .

Casa de Salud, a nonprofit clinic in Albuquerque, New Mexico, provides primary medical care, opioid addiction services and non-Western therapies, including acupuncture and reiki, to a largely low-income population.
And, like so many other health care providers that serve as a safety net, its revenue — and its future — are threatened by the COVID-19 epidemic.
“I’ve been working for the past six weeks to figure out how to keep the doors open,” said the clinic’s executive director, Dr. Anjali Taneja. “We’ve seen probably an 80% drop in patient care, which has completely impacted our bottom line.”
In March, Congress authorized $100 billion for health care providers, both to compensate them for the extra costs associated with caring for patients with COVID-19 and for the revenue that’s not coming in from regular care. They have been required to stop providing most nonemergency services, and many patients are afraid to visit health care facilities.
But more than half that money has been allocated by the Department of Health and Human Services, and the majority of it so far has gone to hospitals, doctors and other facilities that serve Medicare patients. Officials said at the time that was an efficient way to get the money beginning to move to many providers. That, however, leaves out a large swath of the health system infrastructure that serves the low-income Medicaid population and children. Casa de Salud, for example, accepts Medicaid but not Medicare.
State Medicaid directors say that without immediate funding, many of the health facilities that serve Medicaid patients could close permanently. More than a month ago, bipartisan Medicaid chiefs wrote the federal government asking for immediate authority to make “retainer” payments — not related to specific care for patients — to keep their health providers in business.
“If we wait, core components of the Medicaid delivery system could fail during, or soon after, this pandemic,” wrote the National Association of Medicaid Directors.
So far, the Trump administration has not responded, although in early April it said it was “working rapidly on additional targeted distributions” for other providers, including those who predominately serve Medicaid patients.
In an email, the Centers for Medicare & Medicaid Services said officials there will “continue to work with states as they seek to ensure continued access to care for Medicaid beneficiaries through and beyond the public health emergency.”
CMS noted that states have several ways of boosting payments for Medicaid providers, but did not directly answer the question about the retainer payments that states are seeking the authority to make. Nor did it say when the funds would start to flow to Medicaid providers who do not also get funding from Medicare.
The delay is frustrating Medicaid advocates.
“This needs to be addressed urgently,” said Joan Alker, executive director of Georgetown University’s Center for Children and Families in Washington, D.C. “We are concerned about the infrastructure and how quickly it could evaporate.”
In the administration’s explanation of how it is distributing the relief funds, Medicaid providers are included in a catchall category at the very bottom of the list, under the heading “additional allocations.”
“To not see anything substantive coming from the federal level just adds insult to injury,” said Todd Goodwin.
He runs the John F. Murphy Homes in Auburn, Maine, which provides residential and day services to hundreds of children and adults with developmental and intellectual disabilities. He said his organization — which has already furloughed almost 300 workers and spent more than $200,000 on COVID-related expenses including purchases of essential equipment such as masks and protective equipment that will not be reimbursable — has not been eligible for any of the various aid programs passed by Congress. It gets most of its funding from Medicaid and public school systems.
The organization has tapped a line of credit to stay afloat. “But if we’re not here providing these services, there’s no Plan B,” he said.
Even providers who largely serve privately insured patients are facing financial distress. Dr. Sandy Chung is CEO of Trusted Doctors, which has about 50 physicians in 13 offices in the Northern Virginia suburbs around Washington, D.C. She said about 15% of its funding comes from Medicaid, but the drop off in private and Medicaid patients has left the group “really struggling.”
“We’ve had to furlough staff, had to curtail hours, and we may have to close some locations,” she said.
Of special concern are children because Medicaid covers nearly 40% of them across the county. Chung, who also heads the Virginia chapter of the American Academy of Pediatrics, said that vaccination rates are off 30% for infants and 75% for adolescents, putting them and others at risk for preventable illnesses.
The biggest rub, she added, is that with the economy in free fall, more people will qualify for Medicaid coverage in the coming weeks and months.
“But if you don’t have providers around anymore, then you will have a significant mismatch,” she said.
Back in Albuquerque, Taneja is working to find whatever sources of funding she can to keep the clinic open. She secured a federal loan to help cover her payroll for a couple of months, but worries what will happen after that. “It would kill me if we’ve survived 15 years in this health care system, just to not make it through COVID,” she said.
KHN senior correspondent Phil Galewitz contributed to this story.


thefiscaltimes--2020-05-19--Progressive Lawmakers Call for Pentagon Budget Cuts

A group of 29 liberal House Democrats wants to cut military spending , arguing that the money is better spent fighting the coronavirus pandemic .
“ Congress must remain focused on responding to the coronavirus pandemic and distributing needed aid domestically , ” the lawmakers wrote in a letter to the leaders of the House Armed Services Committee .
“ In order to do so , appropriators must have access to increased levels of non-defense spending which could be constrained by any increase to defense spending.
” The letter noted that U.S. military spending already outpaces that of the next @ @ @ @ @ @ @ : The liberals ’ demand “ stands to greatly complicate the Democratic-controlled House ’ s ability to advance the National Defense Authorization Act , one of the most consequential must-pass measures that Congress assembles each year , ” writes Mike DeBonis at The Washington Post .
Republicans and moderate Democrats aren ’ t likely to go along with defense budget cuts , so the question may be how far progressives want to push the issue and how willing they are to use their leverage .
“ With 29 signatures , the letter carries @ @ @ @ @ @ @ : “ Should Democratic leaders move forward with an outsize defense bill , they will need to do so with Republican votes .
The signers could together block the bill from passage if the GOP unites against Democrats , as it did last year.
” Read more at The Washington Post or Politico .

A group of 29 liberal House Democrats wants to cut military spending, arguing that the money is better spent fighting the coronavirus pandemic.
“Congress must remain focused on responding to the coronavirus pandemic and distributing needed aid domestically,” the lawmakers wrote in a letter to the leaders of the House Armed Services Committee. “In order to do so, appropriators must have access to increased levels of non-defense spending which could be constrained by any increase to defense spending.”
The letter noted that U.S. military spending already outpaces that of the next 10 nations combined.
Why it matters: The liberals’ demand “stands to greatly complicate the Democratic-controlled House’s ability to advance the National Defense Authorization Act, one of the most consequential must-pass measures that Congress assembles each year,” writes Mike DeBonis at The Washington Post. Republicans and moderate Democrats aren’t likely to go along with defense budget cuts, so the question may be how far progressives want to push the issue and how willing they are to use their leverage. “With 29 signatures, the letter carries an implicit ultimatum,” DeBonis says: “Should Democratic leaders move forward with an outsize defense bill, they will need to do so with Republican votes. The signers could together block the bill from passage if the GOP unites against Democrats, as it did last year.”
Read more at The Washington Post or Politico.


thefiscaltimes--2020-05-19--Trump Admin Awards New Contract to Bring Drug Manufacturing Back to US

The Trump administration said Tuesday that it has awarded a $ 354 million contract for a private sector team led @ @ @ @ @ Phlow Corp. to make generic drugs and their ingredients in the United States .
Administration @ @ @ @ @ an important step in efforts to bring back offshore pharmaceutical manufacturing after the coronavirus pandemic @ @ @ @ @ supply chains being mostly in India and China .
“ The COVID-19 pandemic has reminded @ @ @ @ @ other sources of instability can threaten America ’ s medical supply chains , potentially endangering @ @ @ @ @ Health and Human Services Secretary Alex Azar said in a statement .
“ Working with @ @ @ @ @ is taking a significant step to rebuild our domestic ability to protect ourselves from health @ @ @ @ @ and creating new American jobs in the process.
” The contract can be extended for @ @ @ @ @ $ 812 million over 10 years , HHS said .

The Trump administration said Tuesday that it has awarded a $354 million contract for a private sector team led by a Virginia-based startup called Phlow Corp. to make generic drugs and their ingredients in the United States. Administration officials hailed the deal as an important step in efforts to bring back offshore pharmaceutical manufacturing after the coronavirus pandemic highlighted the risks of those supply chains being mostly in India and China.
“The COVID-19 pandemic has reminded us how health threats or other sources of instability can threaten America’s medical supply chains, potentially endangering Americans’ health,” Health and Human Services Secretary Alex Azar said in a statement. “Working with the private sector, HHS is taking a significant step to rebuild our domestic ability to protect ourselves from health threats by utilizing American-made ingredients and creating new American jobs in the process.”
The contract can be extended for up to a total of $812 million over 10 years, HHS said.


thefiscaltimes--2020-05-19--Trump Ramps Up His Battle With World Health Organization

President Trump threatened late Monday to permanently stop funding the World Health Organization and “ reconsider ” U.S. membership in the group if it does not “ commit to major substantive improvements within the next 30 days.
” Trump didn ’ t specify what changes he is seeking , but in a scathing four-page letter to WHO Director-General Tedros Adhanom Ghebreyesus posted to Twitter shortly before 11 p.m. , the president repeated many of the accusations he has leveled in recent weeks against the United Nations agency and its response to the Covid-19 pandemic .
He alleged that the WHO @ @ @ @ @ @ @ in Wuhan , China ; repeated inaccurate or misleading information from the Chinese government while failing to share other information ; and failed to press China for an independent investigation into the origins of the virus .
Trump again criticized what he called the WHO ’ s “ alarming lack of independence ” from Beijing .
“ It is clear the repeated missteps by you and your organization in responding to the pandemic have been extremely costly for the world , ” Trump wrote .
“ The only way forward for the World @ @ @ @ @ @ @ demonstrate independence from China.
” The background : Trump had initially praised China ’ s response to the pandemic , but as the U.S. death toll rose and criticism of his administration ’ s own response mounted , he shifted to attacking both WHO and Beijing .
Last month , Trump suspended U.S. payments to WHO for 60 days , sparking criticism and an outpouring of international statements supporting the organization and warning of the risks of cutting its funding in the midst of a pandemic .
The United States is the largest @ @ @ @ @ @ @ About $ 400 million in annual funds to WHO have been halted since last month , according to The Washington Post .
A measure adopted at a virtual gathering of WHO member nations this week calls for the organization to undertake an independent review of its pandemic response at the “ earliest appropriate moment.
” The responses : The WHO said in a statement that it was “ considering the contents ” of Trump ’ s letter .
A Chinese official , meanwhile , said the Trump administration was violating its international obligations @ @ @ @ @ @ @ , smear China and shift blame for its own incompetent response , ” according to the Post .
Medical journal The Lancet knocked Trump for what it said was a “ factually incorrect ” statement in his letter .
Trump had written that WHO had ignored credible reports , including from The Lancet , in December about the virus spreading in Wuhan , China .
The Lancet said it “ published no report in December , 2019 , referring to a virus or outbreak in Wuhan or anywhere else in China.
” Its @ @ @ @ @ @ @ January 24 , it said .
“ The allegations levelled against WHO in President Trump ’ s letter are serious and damaging to efforts to strengthen international cooperation to control this pandemic , ” The Lancet statement said .
“ It is essential that any review of the global response is based on a factually accurate account of what took place in December and January.
” Why it matters : Trump ’ s latest threat is likely to heighten concerns that the United States is ceding its leadership role and allowing China to @ @ @ @ @ @ @ the administration strongly rejects .
China has pledged an additional $ 30 billion to the WHO .
Chinese President Xi Jinping this week called on countries to rally behind the WHO and pledged $ 2 billion to fight the pandemic around the world , a move U.S. officials saw as a further attempt to fend off accountability for China ’ s coronavirus response .

President Trump threatened late Monday to permanently stop funding the World Health Organization and “reconsider” U.S. membership in the group if it does not “commit to major substantive improvements within the next 30 days.”
Trump didn’t specify what changes he is seeking, but in a scathing four-page letter to WHO Director-General Tedros Adhanom Ghebreyesus posted to Twitter shortly before 11 p.m., the president repeated many of the accusations he has leveled in recent weeks against the United Nations agency and its response to the Covid-19 pandemic. He alleged that the WHO ignored early reports of the virus spreading in Wuhan, China; repeated inaccurate or misleading information from the Chinese government while failing to share other information; and failed to press China for an independent investigation into the origins of the virus. Trump again criticized what he called the WHO’s “alarming lack of independence” from Beijing.
“It is clear the repeated missteps by you and your organization in responding to the pandemic have been extremely costly for the world,” Trump wrote. “The only way forward for the World Health Organization is if it can actually demonstrate independence from China.”
The background: Trump had initially praised China’s response to the pandemic, but as the U.S. death toll rose and criticism of his administration’s own response mounted, he shifted to attacking both WHO and Beijing. Last month, Trump suspended U.S. payments to WHO for 60 days, sparking criticism and an outpouring of international statements supporting the organization and warning of the risks of cutting its funding in the midst of a pandemic. The United States is the largest source of funding for the agency. About $400 million in annual funds to WHO have been halted since last month, according to The Washington Post.
A measure adopted at a virtual gathering of WHO member nations this week calls for the organization to undertake an independent review of its pandemic response at the “earliest appropriate moment.”
The responses: The WHO said in a statement that it was “considering the contents” of Trump’s letter. A Chinese official, meanwhile, said the Trump administration was violating its international obligations and “trying to mislead the public, smear China and shift blame for its own incompetent response,” according to the Post.
Medical journal The Lancet knocked Trump for what it said was a “factually incorrect” statement in his letter. Trump had written that WHO had ignored credible reports, including from The Lancet, in December about the virus spreading in Wuhan, China. The Lancet said it “published no report in December, 2019, referring to a virus or outbreak in Wuhan or anywhere else in China.” Its first reports on the virus were published January 24, it said.
“The allegations levelled against WHO in President Trump’s letter are serious and damaging to efforts to strengthen international cooperation to control this pandemic,” The Lancet statement said. “It is essential that any review of the global response is based on a factually accurate account of what took place in December and January.”
Why it matters: Trump’s latest threat is likely to heighten concerns that the United States is ceding its leadership role and allowing China to enhance its global standing — criticisms that the administration strongly rejects. China has pledged an additional $30 billion to the WHO. Chinese President Xi Jinping this week called on countries to rally behind the WHO and pledged $2 billion to fight the pandemic around the world, a move U.S. officials saw as a further attempt to fend off accountability for China’s coronavirus response.


thefiscaltimes--2020-05-18--$500 Billion Coronavirus Relief Fund Has Barely Been Used

The Treasury Department has disbursed just $ 37.5 billion out of $ 500 billion in emergency coronavirus funds approved by Congress as part of the CARES Act passed in March , according to the first report of the congressional oversight commission monitoring the implementation of the law .
Airlines still waiting on billions from relief fund : Congress allocated $ 46 billion for aid to the air travel industry , but the Treasury Department has yet to disburse any of the money .
The funds include $ 25 billion for airlines and $ 17 billion for related businesses that are @ @ @ @ @ @ @ not yet lending : The Federal Reserve and Treasury last month announced five lending facilities meant to help prop up various segments of the economy , including “ Main Street ” lending programs targeting small- and mid-sized businesses , a program for states and municipalities , and a corporate-bond buying facility .
Only one of those programs is fully up and running .
Treasury disbursed $ 37.5 billion to the corporate facility , called the Secondary Market Corporate Credit Facility ( SMCCF ) , earlier this month .
“ The Treasury and the @ @ @ @ @ @ @ with the exception of the SMCCF , the Treasury has not invested in them yet , nor has the Fed put them into operation , ” the oversight report says .
“ Their size and scope may also grow as the Treasury has only pledged $ 185 billion of the $ 454 billion appropriated in the CARES Act for investments in Fed lending facilities.
” Changes to lending terms : “ The report describes how even before any money from the Main Street program has been lent , the terms of the program @ @ @ @ @ @ @ Post ’ s Erica Werner reports .
“ The changes include increasing the size of loans , eliminating a requirement that companies have to attest they need money ‘ due to the exigent circumstances presented by ’ the coronavirus , and modifying a requirement that companies make ‘ reasonable efforts ’ to maintain payroll and retain employees during the term of a loan .
Instead , they will be required to make ‘ commercially reasonable efforts ’ to do so.
” The Fed and Treasury also expanded the $ 35 billion facility to @ @ @ @ @ @ @ counties , after criticism that the original guidelines left only a few dozen cities and counties eligible to participate .
The facility will now buy notes from counties with a population of at least 500,000 residents ( instead of the original floor of 2 million residents ) and cities with a population of at least 250,000 residents ( instead of a million residents ) .
The program will also buy notes that mature within at least three years instead of two years .
The bottom line : Congress may have moved with unusual @ @ @ @ @ @ @ pandemic , but while the Treasury Department quickly implemented other elements of the CARES Act , the report highlights how the lending programs have gotten off to a slow start and how many questions remain to be answered about how they will function .
Roughly a third of the new report is filled with questions for the Treasury Department and the Federal Reserve about the programs .
Similar questions still hang over the oversight commission and broader oversight of the trillions in new spending approved by Congress .
The five-member commission still doesn @ @ @ @ @ @ @ House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell have yet to agree on a person to fill that post .
The Senate also has yet to confirm a special inspector general to oversee the $ 500 billion Treasury fund .
The commission ’ s next report is reportedly due in mid-June .

The Treasury Department has disbursed just $37.5 billion out of $500 billion in emergency coronavirus funds approved by Congress as part of the CARES Act passed in March, according to the first report of the congressional oversight commission monitoring the implementation of the law.
Airlines still waiting on billions from relief fund: Congress allocated $46 billion for aid to the air travel industry, but the Treasury Department has yet to disburse any of the money. The funds include $25 billion for airlines and $17 billion for related businesses that are critical to national security.
Lending programs not yet lending: The Federal Reserve and Treasury last month announced five lending facilities meant to help prop up various segments of the economy, including “Main Street” lending programs targeting small- and mid-sized businesses, a program for states and municipalities, and a corporate-bond buying facility. Only one of those programs is fully up and running. Treasury disbursed $37.5 billion to the corporate facility, called the Secondary Market Corporate Credit Facility (SMCCF), earlier this month.
“The Treasury and the Fed have announced these facilities but, with the exception of the SMCCF, the Treasury has not invested in them yet, nor has the Fed put them into operation,” the oversight report says. “Their size and scope may also grow as the Treasury has only pledged $185 billion of the $454 billion appropriated in the CARES Act for investments in Fed lending facilities.”
Changes to lending terms: “The report describes how even before any money from the Main Street program has been lent, the terms of the program already have evolved,” The Washington Post’s Erica Werner reports. “The changes include increasing the size of loans, eliminating a requirement that companies have to attest they need money ‘due to the exigent circumstances presented by’ the coronavirus, and modifying a requirement that companies make ‘reasonable efforts’ to maintain payroll and retain employees during the term of a loan. Instead, they will be required to make ‘commercially reasonable efforts’ to do so.”
The Fed and Treasury also expanded the $35 billion facility to buy debt from states, cities and counties, after criticism that the original guidelines left only a few dozen cities and counties eligible to participate. The facility will now buy notes from counties with a population of at least 500,000 residents (instead of the original floor of 2 million residents) and cities with a population of at least 250,000 residents (instead of a million residents). The program will also buy notes that mature within at least three years instead of two years.
The bottom line: Congress may have moved with unusual speed to provide money to address the pandemic, but while the Treasury Department quickly implemented other elements of the CARES Act, the report highlights how the lending programs have gotten off to a slow start and how many questions remain to be answered about how they will function. Roughly a third of the new report is filled with questions for the Treasury Department and the Federal Reserve about the programs.
Similar questions still hang over the oversight commission and broader oversight of the trillions in new spending approved by Congress. The five-member commission still doesn’t have a chairman, as House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell have yet to agree on a person to fill that post. The Senate also has yet to confirm a special inspector general to oversee the $500 billion Treasury fund.
The commission’s next report is reportedly due in mid-June.


thefiscaltimes--2020-05-20--Trump Wants to Cut Unemployment Benefits Amid Record Unemployment: Report

The enhanced unemployment benefits provided by Congress for laid-off workers as part of the $ 2.2 trillion CARES Act are shaping up to be a major point of contention as lawmakers engage in an increasingly partisan debate over a next round of coronavirus aid .
President Trump reportedly expressed opposition to extending the $ 600-a-week increase in unemployment benefits , which comes on top of benefits already provided by states , during a closed-door lunch with Senate Republicans on Tuesday , The Washington Post ’ s Seung Min Kim reports .
Democrats have proposed extending the aid , which is @ @ @ @ @ @ @ July , through January 2021 , but Republicans — some of whom balked at the initial boost — have said they worry that some workers are making more in unemployment than they would at their jobs , giving them little incentive to return to work .
A paper from University of Chicago researchers found that 68 % of jobless workers eligible for unemployment insurance will get benefits greater than their lost earnings , according to The Hill .
Trump reportedly also did not say that he would reject a coronavirus bill that extends @ @ @ @ @ @ @ Graham told the Post that the president agrees that that is hurting the recovery .
It ’ s not clear whether Trump would want to eliminate the enhanced payments or possibly lower or cap them .
Some Republicans have floated the idea of allowing people to continue getting some level of benefits for a set period of time when they return to work .
That ’ s a significant concern for the Trump administration as it pins it hopes for a swift economic rebound — and the president ’ s reelection prospects — @ @ @ @ @ @ @ additional federal stimulus .
“ It ’ s a transition to greatness , ” Trump told reporters after his Senate lunch Tuesday .
“ It ’ s the third quarter , and then it ’ s going into the fourth quarter .
I think the fourth quarter is going to be really good .
But I think that , above all , next year you ’ re going to have a tremendous year.
” By contrast , Federal Reserve Chairman Jerome Powell reiterated this week that a full recovery might take until the @ @ @ @ @ @ @ Office projects that unemployment will average 9.3 % next year , similar to the elevated levels seen during the 2007-2009 recession .
A steep cut for jobless workers : More than 36 million people have filed for first-time unemployment benefits over the past two months .
The Treasury Department reported that spending on unemployment benefits rose to $ 48.4 billion in April , up $ 45 billion from February .
A recent report from the Brookings Institution found that those payouts offset just over half of the estimated $ 80 billion in private @ @ @ @ @ @ @ And many economists worry that allowing the enhanced benefit to expire could undercut any recovery by leaving consumers facing a dire cash crunch .
Ending the benefit boost would reportedly reduce the incomes of about 25 million Americans by half .
The bottom line : “ Trump ’ s own motives on this issue might be colored even more by his desire to declare the coronavirus pandemic over , and the economy in full recovery , ” Ed Kilgore writes at New York Magazine ’ s Intelligencer .
“ You don ’ t @ @ @ @ @ @ @ is racing back towards full employment and will soon once again be the greatest economy in the history of the human race , at least in Trump ’ s mind.
” But Trump may be undercutting the chances of the strong rebound he wants and likely needs to help his chances of winning another term in November .
In any case , with the Senate leaving later this week for its Memorial Day recess and Republicans still urging a “ pause ” before any additional legislation , talks on a new package aren @ @ @ @ @ @ @ a couple of weeks — and there are still plenty of other issues to be hashed out as well , from aid to state and local governments to stimulus payments to households .

The enhanced unemployment benefits provided by Congress for laid-off workers as part of the $2.2 trillion CARES Act are shaping up to be a major point of contention as lawmakers engage in an increasingly partisan debate over a next round of coronavirus aid.
President Trump reportedly expressed opposition to extending the $600-a-week increase in unemployment benefits, which comes on top of benefits already provided by states, during a closed-door lunch with Senate Republicans on Tuesday, The Washington Post’s Seung Min Kim reports.
Democrats have proposed extending the aid, which is set to expire at the end of July, through January 2021, but Republicans — some of whom balked at the initial boost — have said they worry that some workers are making more in unemployment than they would at their jobs, giving them little incentive to return to work. A paper from University of Chicago researchers found that 68% of jobless workers eligible for unemployment insurance will get benefits greater than their lost earnings, according to The Hill.
Trump reportedly also did not say that he would reject a coronavirus bill that extends the jobless benefit, but Sen. Lindsey Graham told the Post that the president agrees that that is hurting the recovery.
It’s not clear whether Trump would want to eliminate the enhanced payments or possibly lower or cap them. Some Republicans have floated the idea of allowing people to continue getting some level of benefits for a set period of time when they return to work.
That’s a significant concern for the Trump administration as it pins it hopes for a swift economic rebound — and the president’s reelection prospects — on the reopening of states rather than additional federal stimulus. “It’s a transition to greatness,” Trump told reporters after his Senate lunch Tuesday. “It’s the third quarter, and then it’s going into the fourth quarter. I think the fourth quarter is going to be really good. But I think that, above all, next year you’re going to have a tremendous year.”
By contrast, Federal Reserve Chairman Jerome Powell reiterated this week that a full recovery might take until the end of 2021 and the Congressional Budget Office projects that unemployment will average 9.3% next year, similar to the elevated levels seen during the 2007-2009 recession.
A steep cut for jobless workers: More than 36 million people have filed for first-time unemployment benefits over the past two months. The Treasury Department reported that spending on unemployment benefits rose to $48.4 billion in April, up $45 billion from February. A recent report from the Brookings Institution found that those payouts offset just over half of the estimated $80 billion in private wages and salaries lost last month. And many economists worry that allowing the enhanced benefit to expire could undercut any recovery by leaving consumers facing a dire cash crunch. Ending the benefit boost would reportedly reduce the incomes of about 25 million Americans by half.
The bottom line: “Trump’s own motives on this issue might be colored even more by his desire to declare the coronavirus pandemic over, and the economy in full recovery,” Ed Kilgore writes at New York Magazine’s Intelligencer. “You don’t need enhanced UI benefits if the economy is racing back towards full employment and will soon once again be the greatest economy in the history of the human race, at least in Trump’s mind.”
But Trump may be undercutting the chances of the strong rebound he wants and likely needs to help his chances of winning another term in November. In any case, with the Senate leaving later this week for its Memorial Day recess and Republicans still urging a “pause” before any additional legislation, talks on a new package aren’t likely to go anywhere for a couple of weeks — and there are still plenty of other issues to be hashed out as well, from aid to state and local governments to stimulus payments to households.


thefiscaltimes--2020-05-19--Congressional Budget Office Forecasts High Unemployment Lasting Through Next Year

The Congressional Budget Office on Tuesday released an updated economic forecast , predicting that GDP will shrink at an annual rate of 38 % in the second quarter and that the unemployment rate will peak at nearly 16 % in the third quarter .
Even as the economy beings to recover over the second half of this year , CBO expects the unemployment rate to remain high , averaging 9.3 % in 2021 as the “ persistence of social distancing will keep economic activity and labor market conditions suppressed for some time.
” It sees the unemployment rate falling to @ @ @ @ @ @ @ 2021 .
Those projections are actually slightly better than CBO ’ s previous estimates , released in April , but they underscore just how lasting the economic damage is likely to be .
`` Compared with their values two years earlier , by the fourth quarter of 2021 real GDP is projected to be 1.6 percent lower , the unemployment rate 5.1 percentage points higher , and the employment-to-population ratio 4.8 percentage points lower , '' the report said .
The budget scorekeeper also said that the four pandemic-related laws enacted by Congress @ @ @ @ @ @ @ to increase the federal deficit by $ 2.2 trillion in fiscal year 2020 and by $ 600 billion in fiscal year 2021 .
Those figures equate to about 11 % of nominal GDP this year and 3 % in fiscal 2021 .

The Congressional Budget Office on Tuesday released an updated economic forecast, predicting that GDP will shrink at an annual rate of 38% in the second quarter and that the unemployment rate will peak at nearly 16% in the third quarter. Even as the economy beings to recover over the second half of this year, CBO expects the unemployment rate to remain high, averaging 9.3% in 2021 as the “persistence of social distancing will keep economic activity and labor market conditions suppressed for some time.” It sees the unemployment rate falling to just 8.6% by the end of 2021.
Those projections are actually slightly better than CBO’s previous estimates, released in April, but they underscore just how lasting the economic damage is likely to be. "Compared with their values two years earlier, by the fourth quarter of 2021 real GDP is projected to be 1.6 percent lower, the unemployment rate 5.1 percentage points higher, and the employment-to-population ratio 4.8 percentage points lower," the report said.
The budget scorekeeper also said that the four pandemic-related laws enacted by Congress since the beginning of March are projected to increase the federal deficit by $2.2 trillion in fiscal year 2020 and by $600 billion in fiscal year 2021. Those figures equate to about 11% of nominal GDP this year and 3% in fiscal 2021.


thefiscaltimes--2020-05-21--As Unemployment Filings Top 38 Million, McConnell Vows to End Enhanced Benefits

About 2.4 million people filed claims for unemployment benefits last week , the Labor Department announced Thursday , bringing the nine-week total since the coronavirus crisis struck to more than 38 million .
The weekly initial claims data continued on a downward trend , falling for the seventh straight week , but the overall level remains at historic highs .
`` The jobs numbers will be worse before they get better , '' Treasury Secretary Steven Mnuchin warned earlier this week .
Meanwhile , the debate over enhanced unemployment benefits — which provide an additional $ 600 per week in @ @ @ @ @ @ @ — continues in Washington .
Senate GOP Leader Mitch McConnell ( R-TN ) reportedly said this week that the additional benefits were “ crazy policy ” that might motivate some people to stay on unemployment and avoid returning to work .
Although critics have pointed out that workers aren ’ t able to make that decision on their own , McConnell nevertheless vowed Wednesday that the enhanced benefits `` will not be in the next bill , ” referring to the next round of relief and stimulus funding currently under consideration .
Top @ @ @ @ @ @ @ on the issue and are joining forces with the White House and powerful business lobbies including the Chamber of Commerce to oppose any extension of the enhanced benefits , which expire at the end of July .
Mnuchin said Thursday that the administration and lawmakers will need to fix the enhanced unemployment benefits , given what he called “ the quirk that in certain cases we ’ re actually paying people more than they made.
” Conservatives worry that any delay in workers returning to their jobs could slow the recovery .
“ @ @ @ @ @ @ @ workers , and that ’ s the craziest idea ever , ” said Sen. Rick Scott ( R-FL ) .
“ We can ’ t hurt our ability to reopen the economy.
” Democrats are pushing for an extension of the benefits , citing the ongoing need for aid amid the worst economic conditions since the Great Depression .
“ The economic need is not going away , ” Martha Gimbel , a labor economist at Schmidt Futures , told The Washington Post .
“ The fact that we are two months into @ @ @ @ @ @ @ getting multi-million claims numbers , speaks to how deep and intense the economic pain is right now.
” What ’ s next : The enhanced jobless benefits will be a point of contention in the next stimulus bill , which lawmakers are expected to negotiate in the coming weeks .
The $ 3 trillion bill passed by House Democrats last week would extend the benefits through January , but Republicans appear to be unified in trimming those benefits back , if not eliminating them entirely .
GOP staffers told the Post that in @ @ @ @ @ @ @ some kind of compromise on the issue , with Congress passing either a smaller weekly enhancement taking effect after July or a one-time bonus for workers who return to their jobs

About 2.4 million people filed claims for unemployment benefits last week, the Labor Department announced Thursday, bringing the nine-week total since the coronavirus crisis struck to more than 38 million.
The weekly initial claims data continued on a downward trend, falling for the seventh straight week, but the overall level remains at historic highs. "The jobs numbers will be worse before they get better," Treasury Secretary Steven Mnuchin warned earlier this week.
Meanwhile, the debate over enhanced unemployment benefits — which provide an additional $600 per week in support, over and above state-level payments — continues in Washington.
Senate GOP Leader Mitch McConnell (R-TN) reportedly said this week that the additional benefits were “crazy policy” that might motivate some people to stay on unemployment and avoid returning to work. Although critics have pointed out that workers aren’t able to make that decision on their own, McConnell nevertheless vowed Wednesday that the enhanced benefits "will not be in the next bill,” referring to the next round of relief and stimulus funding currently under consideration.
Top Republican leaders have repeatedly expressed their concerns on the issue and are joining forces with the White House and powerful business lobbies including the Chamber of Commerce to oppose any extension of the enhanced benefits, which expire at the end of July. Mnuchin said Thursday that the administration and lawmakers will need to fix the enhanced unemployment benefits, given what he called “the quirk that in certain cases we’re actually paying people more than they made.”
Conservatives worry that any delay in workers returning to their jobs could slow the recovery. “The government is competing with businesses for workers, and that’s the craziest idea ever,” said Sen. Rick Scott (R-FL). “We can’t hurt our ability to reopen the economy.”
Democrats are pushing for an extension of the benefits, citing the ongoing need for aid amid the worst economic conditions since the Great Depression. “The economic need is not going away,” Martha Gimbel, a labor economist at Schmidt Futures, told The Washington Post. “The fact that we are two months into this, and we’re still getting multi-million claims numbers, speaks to how deep and intense the economic pain is right now.”
What’s next: The enhanced jobless benefits will be a point of contention in the next stimulus bill, which lawmakers are expected to negotiate in the coming weeks. The $3 trillion bill passed by House Democrats last week would extend the benefits through January, but Republicans appear to be unified in trimming those benefits back, if not eliminating them entirely. GOP staffers told the Post that in the end, they expect to see some kind of compromise on the issue, with Congress passing either a smaller weekly enhancement taking effect after July or a one-time bonus for workers who return to their jobs


thefiscaltimes--2020-05-21--Can Republicans Come Together on Another Coronavirus Relief Bill?

Treasury Secretary Steven Mnuchin said Thursday that there is a “ strong likelihood ” that Congress will need to pass another coronavirus relief bill , though he said the additional stimulus won ’ t be needed right away .
“ We ’ re going to carefully review the next few weeks , ” Mnuchin said via video at an event hosted by The Hill .
“ I think there is a strong likelihood we will need another bill , but we just have $ 3 trillion we ’ re pumping into the economy and we ’ re going to step @ @ @ @ @ @ @ very clearly how we need to spend more money and if we need to do that.
” Mnuchin ’ s comments come after a number of Senate Republicans , particularly those facing difficult reelection bids , indicated support this week for passing another coronavirus relief bill as soon as next month .
“ Publicly and privately , Republicans are signaling that they believe the Senate will have to move beginning in June on another recovery package , calls that many believe will intensify next month after senators hear concerns about the deteriorating economy @ @ @ @ @ @ @ Memorial Day recess , ” CNN ’ s Manu Raju and Lauren Fox report .
“ And some are quietly urging President Donald Trump to get more involved.
” The president earlier this month said he was in “ no rush ” to negotiate another rescue package , and Senate Majority Leader Mitch McConnell has also argued that there ’ s no urgency to pass another bill , saying lawmakers need to take time to see how the nearly $ 3 trillion already provided is working .
But Federal Reserve Chairman Jerome Powell @ @ @ @ @ @ @ economy may need more support and that the pain from the pandemic could drag on for years , and McConnell may be sensitive to the entreaties of senators looking to hold onto their seats — and the GOP ’ s Senate majority .
What Some Senate Republicans Are Saying • `` I think June does n't need to come and go without a phase four , '' Sen. Roger Wicker of Mississippi said .
According to The Hill , Wicker said that “ almost everybody ” in the GOP conference “ in their @ @ @ @ @ @ @ another relief package next month , even if they aren ’ t publicly pressing for action .
• “ Congress has a tremendous responsibility to help mitigate the impact of this crisis on our states and our local communities and on the families they serve , ” Sen. Susan Collins of Maine said Wednesday .
“ We must not wait .
We should act now.
” Collins urged the Senate to start negotiating with the House and warned that “ massive layoffs and huge reductions in services ” could follow if states , @ @ @ @ @ @ @ more aid .
• Sen. Cory Gardner of Colorado urged the Senate to stay in town instead of taking its Memorial Day recess .
“ It ’ s unfathomable that the Senate is set to go on recess without considering any additional # COVID19 assistance for the American people .
Anyone who thinks now is the time to go on recess hasn ’ t been listening , ” he tweeted .
Gardner later told Politico he feels good about the progress made by senators working on changes that would give businesses more time @ @ @ @ @ @ @ • None “ Optimistically , we might move before the Fourth of July , ” said Sen. Roy Blunt of Missouri , “ but I don ’ t know that we move that quick .
I do think that we move on a phase four before the August break.
” The break is scheduled to start August 8 .
• Sen. Lindsey Graham is pushing Trump to pursue another infrastructure package , despite resistance from Senate Majority Leader Mitch McConnell .
`` I want to do infrastructure , '' Graham told CNN .
@ @ @ @ @ @ @ the time .
We got it teed up .
This is the time to go big .
...
It really is a once-in-a-lifetime opportunity to give a facelift to the country . ''
Blunt and Wicker reportedly also want an infrastructure package .
“ Personally , I ’ d like to see infrastructure , ” Blunt said , according to The Hill .
“ If we ’ re going to have to spend money to reignite the economy , I ’ d prefer to spend it on something that has long-term benefit.
” @ @ @ @ @ @ @ consensus : Republicans face some significant internal divisions that may make it difficult to agree on the size and scope of any additional aid .
Some want to hold off and warn that there may not be a need to spend more .
Others reportedly want narrow tweaks to existing programs .
Still others aim to provide a larger , more ambitious package .
“ Republicans have been debating ideas , including giving unemployed workers a bonus for returning to companies that reopen , giving small business owners more flexibility on how they @ @ @ @ @ @ @ Program , providing states and cities more leeway in how they spend $ 150 billion that 's been already approved or whether to give those governments and other distressed industries another massive bailout from Washington , ” CNN ’ s Raju and Fox report .
Pelosi says “ it ’ s just a matter of time ” : House Democrats last week passed a $ 3 trillion relief bill , but Senate Republicans said that legislation was dead on arrival , dismissing it as a “ liberal wish list.
” House Speaker Nancy @ @ @ @ @ @ @ it ’ s just a matter of time ” before the Senate takes up another package .
“ I ’ m optimistic , ” she said , “ because the American people fully support what we are doing and oppose the Senate obstructing it.
” The bottom line : Another relief package is likely .
Michael Pearce , senior U.S. economist at Capital Economics , suggests in a new note to clients that a compromise is likely “ because Republicans won ’ t want to undermine the recovery in an election year and @ @ @ @ @ @ @ a bill limiting legal liability for coronavirus-related claims ” against hospitals and businesses .
“ Overall , it seems likely that the next fiscal package will measure in the billions rather than trillions , ” Pearce writes , suggesting that wouldn ’ t make a huge difference to the economy .
“ We doubt a substantially larger package would be agreed unless there was a damaging second wave of the virus later this year , in which case the deficit could rise by an additional 10-20 percentage points .
”

Treasury Secretary Steven Mnuchin said Thursday that there is a “strong likelihood” that Congress will need to pass another coronavirus relief bill, though he said the additional stimulus won’t be needed right away.
“We’re going to carefully review the next few weeks,” Mnuchin said via video at an event hosted by The Hill. “I think there is a strong likelihood we will need another bill, but we just have $3 trillion we’re pumping into the economy and we’re going to step back for a few weeks and think very clearly how we need to spend more money and if we need to do that.”
Mnuchin’s comments come after a number of Senate Republicans, particularly those facing difficult reelection bids, indicated support this week for passing another coronavirus relief bill as soon as next month.
“Publicly and privately, Republicans are signaling that they believe the Senate will have to move beginning in June on another recovery package, calls that many believe will intensify next month after senators hear concerns about the deteriorating economy in their states during next week's Memorial Day recess,” CNN’s Manu Raju and Lauren Fox report. “And some are quietly urging President Donald Trump to get more involved.”
The president earlier this month said he was in “no rush” to negotiate another rescue package, and Senate Majority Leader Mitch McConnell has also argued that there’s no urgency to pass another bill, saying lawmakers need to take time to see how the nearly $3 trillion already provided is working. But Federal Reserve Chairman Jerome Powell warned lawmakers in recent days that the economy may need more support and that the pain from the pandemic could drag on for years, and McConnell may be sensitive to the entreaties of senators looking to hold onto their seats — and the GOP’s Senate majority.
What Some Senate Republicans Are Saying
"I think June doesn't need to come and go without a phase four," Sen. Roger Wicker of Mississippi said. According to The Hill, Wicker said that “almost everybody” in the GOP conference “in their heart” wants to move ahead on another relief package next month, even if they aren’t publicly pressing for action.
“Congress has a tremendous responsibility to help mitigate the impact of this crisis on our states and our local communities and on the families they serve,” Sen. Susan Collins of Maine said Wednesday. “We must not wait. We should act now.” Collins urged the Senate to start negotiating with the House and warned that “massive layoffs and huge reductions in services” could follow if states, cities and counties don’t get more aid.
Sen. Cory Gardner of Colorado urged the Senate to stay in town instead of taking its Memorial Day recess. “It’s unfathomable that the Senate is set to go on recess without considering any additional #COVID19 assistance for the American people. Anyone who thinks now is the time to go on recess hasn’t been listening,” he tweeted. Gardner later told Politico he feels good about the progress made by senators working on changes that would give businesses more time to spend Paycheck Protection Program funds.
“Optimistically, we might move before the Fourth of July,” said Sen. Roy Blunt of Missouri, “but I don’t know that we move that quick. I do think that we move on a phase four before the August break.” The break is scheduled to start August 8.
Sen. Lindsey Graham is pushing Trump to pursue another infrastructure package, despite resistance from Senate Majority Leader Mitch McConnell. "I want to do infrastructure," Graham told CNN. "I told Trump, this is the time. We got it teed up. This is the time to go big. ... It really is a once-in-a-lifetime opportunity to give a facelift to the country." Blunt and Wicker reportedly also want an infrastructure package. “Personally, I’d like to see infrastructure,” Blunt said, according to The Hill. “If we’re going to have to spend money to reignite the economy, I’d prefer to spend it on something that has long-term benefit.”
GOP may have a hard time reaching consensus: Republicans face some significant internal divisions that may make it difficult to agree on the size and scope of any additional aid. Some want to hold off and warn that there may not be a need to spend more. Others reportedly want narrow tweaks to existing programs. Still others aim to provide a larger, more ambitious package.
“Republicans have been debating ideas, including giving unemployed workers a bonus for returning to companies that reopen, giving small business owners more flexibility on how they handle forgivable loans under the Paycheck Protection Program, providing states and cities more leeway in how they spend $150 billion that's been already approved or whether to give those governments and other distressed industries another massive bailout from Washington,” CNN’s Raju and Fox report.
Pelosi says “it’s just a matter of time”: House Democrats last week passed a $3 trillion relief bill, but Senate Republicans said that legislation was dead on arrival, dismissing it as a “liberal wish list.” House Speaker Nancy Pelosi told Bloomberg TV Thursday that “it’s just a matter of time” before the Senate takes up another package. “I’m optimistic,” she said, “because the American people fully support what we are doing and oppose the Senate obstructing it.”
The bottom line: Another relief package is likely. Michael Pearce, senior U.S. economist at Capital Economics, suggests in a new note to clients that a compromise is likely “because Republicans won’t want to undermine the recovery in an election year and because they need Democrat support to pass a bill limiting legal liability for coronavirus-related claims” against hospitals and businesses. “Overall, it seems likely that the next fiscal package will measure in the billions rather than trillions,” Pearce writes, suggesting that wouldn’t make a huge difference to the economy. “We doubt a substantially larger package would be agreed unless there was a damaging second wave of the virus later this year, in which case the deficit could rise by an additional 10-20 percentage points.”


thefiscaltimes--2020-05-20--Trump Threatens Funding to Michigan and Nevada Over Mail-in Voting

President Trump threatened Wednesday to “ hold up ” federal funding to Michigan and Nevada after those states announced plans to expand mail-in voting options in response to the coronavirus pandemic .
Trump has vigorously opposed expanded voting by mail and in a series of tweets Wednesday he again , without evidence , tied such ballots to voter fraud and election cheating .
He also incorrectly claimed that Michigan had illegally sent absentee ballots to 7.7 million people .
Michigan Secretary of State Jocelyn Benson responded by noting that the state had sent applications , not ballots , just as @ @ @ @ @ @ @ states .
“ By mailing applications , we have ensured that no Michigander has to choose between their health and their right to vote , ” Benson said Tuesday in announcing the move .
( Axios notes that a new study found that Wisconsin counties that saw more in-person voters per location during its primary this year had higher rates of positive Covid-19 tests two to three weeks later compared to counties with fewer in-person voters . )
Trump did not specify what kind of funding he might withhold , and he has @ @ @ @ @ @ @ The president would surely face legal challenges if he sought to follow through in this case .
Elie Honig , a legal analyst and former federal prosecutor , told The Hill that Trump may be able to withhold federal funding , but the money “ must relate substantively to the state-level policy at issue '' and that any new restrictions would only apply to new funding , not money that is already flowing to states .
It ’ s also unclear if the president has the power to withhold funds without congressional approval @ @ @ @ @ @ @ earlier this year and in 2018 .

President Trump threatened Wednesday to “hold up” federal funding to Michigan and Nevada after those states announced plans to expand mail-in voting options in response to the coronavirus pandemic.
Trump has vigorously opposed expanded voting by mail and in a series of tweets Wednesday he again, without evidence, tied such ballots to voter fraud and election cheating. He also incorrectly claimed that Michigan had illegally sent absentee ballots to 7.7 million people.
Michigan Secretary of State Jocelyn Benson responded by noting that the state had sent applications, not ballots, just as Republicans had done in a number of states. “By mailing applications, we have ensured that no Michigander has to choose between their health and their right to vote,” Benson said Tuesday in announcing the move. (Axios notes that a new study found that Wisconsin counties that saw more in-person voters per location during its primary this year had higher rates of positive Covid-19 tests two to three weeks later compared to counties with fewer in-person voters.)
Trump did not specify what kind of funding he might withhold, and he has not always acted on such threats. The president would surely face legal challenges if he sought to follow through in this case.
Elie Honig, a legal analyst and former federal prosecutor, told The Hill that Trump may be able to withhold federal funding, but the money “must relate substantively to the state-level policy at issue" and that any new restrictions would only apply to new funding, not money that is already flowing to states. It’s also unclear if the president has the power to withhold funds without congressional approval.
Trump himself reportedly voted by mail earlier this year and in 2018.


thefiscaltimes--2020-05-20--Small Business Relief Program May Get Overhaul

From the moment the Paycheck Protection Program began operating in early April , critics have charged that it could end up hurting the small businesses it is supposed to help .
Most notably , the requirement that small business owners spend all of the money they receive within eight weeks while dedicating at least 75 % of the funds to labor costs in order for the loans to become grants has made participation in the program difficult if not impossible for some potential aid recipients .
Many small businesses with sizable overhead costs but low labor costs , such as @ @ @ @ @ @ @ they won ’ t be able to satisfy those conditions , leaving them with loans that have to be paid back , despite being closed for months .
In response to those complaints , lawmakers in the House are working an overhaul of the PPP , which has received about $ 670 billion in funding from Congress so far .
The legislation will reportedly give small businesses up to 24 weeks to spend the money and eliminate the requirement that most of the funds be used for labor costs .
The bill appears @ @ @ @ @ @ @ voted on next week .
The Small Business Administration said Saturday that more than 4 million loans worth $ 513 billion have been approved since April 3 , leaving more than $ 100 billion available for additional lending .

From the moment the Paycheck Protection Program began operating in early April, critics have charged that it could end up hurting the small businesses it is supposed to help.
Most notably, the requirement that small business owners spend all of the money they receive within eight weeks while dedicating at least 75% of the funds to labor costs in order for the loans to become grants has made participation in the program difficult if not impossible for some potential aid recipients. Many small businesses with sizable overhead costs but low labor costs, such as independently owned restaurants, are worried that they won’t be able to satisfy those conditions, leaving them with loans that have to be paid back, despite being closed for months.
In response to those complaints, lawmakers in the House are working an overhaul of the PPP, which has received about $670 billion in funding from Congress so far. The legislation will reportedly give small businesses up to 24 weeks to spend the money and eliminate the requirement that most of the funds be used for labor costs.
The bill appears to have bipartisan backing and could be voted on next week. The Small Business Administration said Saturday that more than 4 million loans worth $513 billion have been approved since April 3, leaving more than $100 billion available for additional lending.


thefiscaltimes--2020-05-26--Could the US Pay Companies to Leave China?

The Trump administration is encouraging American companies to bring their production facilities back to the U.S. from China – and one top official claims that it will pay them to do it .
`` We welcome any Americans companies in Hong Kong or China mainland , we will do what we can for full expensing and pay the cost of moving if they return their supply chains and their production to the United States , '' chief White House economic adviser Larry Kudlow told Fox Business on Tuesday .
Kudlow provided no further details , but he has mentioned something @ @ @ @ @ @ @ , Kudlow , who serves as the director of the National Economic Council , said the U.S. should “ pay the moving costs ” of companies that leave China , with the payments apparently consisting of tax breaks .
“ I would say , 100 percent immediate expensing across the board for plant , equipment , intellectual property , structures , renovations ...
In other words , if we had 100 percent immediate expensing , we would literally — literally pay the moving costs of American companies , ” he told Fox Business @ @ @ @ @ @ @ officials and lawmakers are discussing a range of options to encourage companies to move production facilities back to the U.S. , including a possible $ 25 billion “ reshoring fund ” that would provide direct payments to firms .
That particular option has met resistance , however , due to worries that paying companies would amount to the government setting industrial policy , which has long been opposed by Republicans as interference in the free market .

The Trump administration is encouraging American companies to bring their production facilities back to the U.S. from China – and one top official claims that it will pay them to do it.
"We welcome any Americans companies in Hong Kong or China mainland, we will do what we can for full expensing and pay the cost of moving if they return their supply chains and their production to the United States," chief White House economic adviser Larry Kudlow told Fox Business on Tuesday.
Kudlow provided no further details, but he has mentioned something similar in the past. Last month, Kudlow, who serves as the director of the National Economic Council, said the U.S. should “pay the moving costs” of companies that leave China, with the payments apparently consisting of tax breaks. “I would say, 100 percent immediate expensing across the board for plant, equipment, intellectual property, structures, renovations ... In other words, if we had 100 percent immediate expensing, we would literally — literally pay the moving costs of American companies,” he told Fox Business.
Reuters reported last week that administration officials and lawmakers are discussing a range of options to encourage companies to move production facilities back to the U.S., including a possible $25 billion “reshoring fund” that would provide direct payments to firms. That particular option has met resistance, however, due to worries that paying companies would amount to the government setting industrial policy, which has long been opposed by Republicans as interference in the free market.


thefiscaltimes--2020-05-22--US Has Saved $429 Billion by Cutting Waste — and There’s Plenty More to Go: GAO

The government could save billions of dollars by operating more efficiently in a wide range of areas , according to a new report from the Government Accountability Office .
Wasting taxpayer funds is always an issue , but it may be an even more pressing concern now that the U.S. has embarked on a massive , multi-trillion-dollar effort to keep the economy afloat during the coronavirus crisis .
“ The federal government has made an unprecedented financial response to the COVID-19 pandemic , ” the report says .
“ At the same time , opportunities exist for achieving billions of @ @ @ @ @ @ @ efficiency and effectiveness of a wide range of federal programs in other areas.
” The tenth in an annual series , the 148-page report identifies hundreds of issues that , if addressed , could produce substantial savings .
In addition to an ongoing list of recommended improvements , some of which have spurred lawmakers to act , the GAO report includes 168 new “ actions ” Congress could take , most of which involve reducing “ fragmentation , overlap , or duplication in government missions and functions.
” The GAO says the government @ @ @ @ @ @ @ far as a result of its efforts to identify ways Congress can reduce costs and increase revenues .
Some highlights from the latest report : * Navy shipbuilding : “ The Department of the Navy could achieve billions of dollars in cost savings by improving its acquisition practices and ensuring that ships can be efficiently sustained , ” the report says .
* Military depots : “ The Department of Defense could potentially save hundreds of millions of dollars annually by accurately measuring and reducing excess funded , unfinished work at military depots.
@ @ @ @ @ @ @ Department of Education should analyze data and use it to verify borrowers ’ income and family size information on Income-Driven Repayment plans to safeguard the hundreds of billions of dollars in federal investment in student loans and potentially save more than $ 2 billion.
” * Medicaid providers : “ The Centers for Medicare & Medicaid Services could ensure that states implement Medicaid provider screening and enrollment requirements , which could potentially save tens of millions of dollars annually.
” * Medicare payments : “ Medicare could have cost savings if Congress were @ @ @ @ @ @ @ certain health care services , which often vary depending on where the service is performed.
” Potential savings are in the billions , according to the report .
* IRA accounts : “ The Internal Revenue Service should establish a formal collaborative mechanism with the Department of Labor to better manage fragmented efforts and enhance compliance for certain individual retirement accounts that engaged in prohibited transactions , and thereby potentially increase revenues by millions of dollars.
” * IRS fraud detection : “ The Internal Revenue Service could improve the agency ’ s @ @ @ @ @ @ @ identity theft , ” with savings potentially in the billions .

The government could save billions of dollars by operating more efficiently in a wide range of areas, according to a new report from the Government Accountability Office.
Wasting taxpayer funds is always an issue, but it may be an even more pressing concern now that the U.S. has embarked on a massive, multi-trillion-dollar effort to keep the economy afloat during the coronavirus crisis. “The federal government has made an unprecedented financial response to the COVID-19 pandemic,” the report says. “At the same time, opportunities exist for achieving billions of dollars in financial savings and improving the efficiency and effectiveness of a wide range of federal programs in other areas.”
The tenth in an annual series, the 148-page report identifies hundreds of issues that, if addressed, could produce substantial savings. In addition to an ongoing list of recommended improvements, some of which have spurred lawmakers to act, the GAO report includes 168 new “actions” Congress could take, most of which involve reducing “fragmentation, overlap, or duplication in government missions and functions.” The GAO says the government has saved about $429 billion so far as a result of its efforts to identify ways Congress can reduce costs and increase revenues.
Some highlights from the latest report:
* Navy shipbuilding: “The Department of the Navy could achieve billions of dollars in cost savings by improving its acquisition practices and ensuring that ships can be efficiently sustained,” the report says.
* Military depots: “The Department of Defense could potentially save hundreds of millions of dollars annually by accurately measuring and reducing excess funded, unfinished work at military depots.”
* Student loans: “The Department of Education should analyze data and use it to verify borrowers’ income and family size information on Income-Driven Repayment plans to safeguard the hundreds of billions of dollars in federal investment in student loans and potentially save more than $2 billion.”
* Medicaid providers: “The Centers for Medicare & Medicaid Services could ensure that states implement Medicaid provider screening and enrollment requirements, which could potentially save tens of millions of dollars annually.”
* Medicare payments: “Medicare could have cost savings if Congress were to equalize the rates Medicare pays for certain health care services, which often vary depending on where the service is performed.” Potential savings are in the billions, according to the report.
* IRA accounts: “The Internal Revenue Service should establish a formal collaborative mechanism with the Department of Labor to better manage fragmented efforts and enhance compliance for certain individual retirement accounts that engaged in prohibited transactions, and thereby potentially increase revenues by millions of dollars.”
* IRS fraud detection: “The Internal Revenue Service could improve the agency’s efforts to prevent refund fraud associated with identity theft,” with savings potentially in the billions.


thefiscaltimes--2020-05-22--Trump Administration Will Send Nearly $5 Billion to Nursing Homes

The Department of Health and Human Services said Friday it has begun distributing some $ 4.9 billion to nursing homes @ @ @ @ @ coronavirus pandemic and provide support for home facing higher expenses or revenue loss .
Each @ @ @ @ @ with six or more certified beds will receive $ 50,000 , plus $ 2,500 per @ @ @ @ @ be used to scale up testing , acquire personal protective equipment , hire workers or @ @ @ @ @ Trade groups representing nursing homes and long-term care facilities said the funding falls short of @ @ @ @ @ have asked for at least $ 10 billion , according to The Hill .
At @ @ @ @ @ at nursing homes and other long-term care facilities have died from the coronavirus , according @ @ @ @ @ tally earlier this month .

The Department of Health and Human Services said Friday it has begun distributing some $4.9 billion to nursing homes to help them combat the coronavirus pandemic and provide support for home facing higher expenses or revenue loss.
Each “skilled nursing facility” with six or more certified beds will receive $50,000, plus $2,500 per bed. The funds can be used to scale up testing, acquire personal protective equipment, hire workers or cover other pandemic-related expenses.
Trade groups representing nursing homes and long-term care facilities said the funding falls short of what they need. They have asked for at least $10 billion, according to The Hill.
At least 28,100 residents and workers at nursing homes and other long-term care facilities have died from the coronavirus, according to a New York Times tally earlier this month.


thefiscaltimes--2020-05-22--Biden Slams Trump’s Coronavirus Response

Former Vice President Joe Biden on Friday slammed President Trump ’ s efforts to prop up the economy in the midst of the coronavirus pandemic , charging that the focus so far has been on helping large corporations and the very wealthy instead of smaller Main Street businesses .
“ Almost 40 million Americans have filed for unemployment , and you know what the White House is proposing ?
More tax cuts for corporate America .
I ’ ve got a novel idea – how about some relief for Main Street ?
” Biden , the presumptive Democratic presidential nominee @ @ @ @ @ @ @ .
He added : “ The president ’ s response to all this has cost lives and has cost jobs .
The way to fix the economy is to get the public health response correct .
What we ’ re doing now is upside-down – the bigger you are the faster you get the money , the smaller you are , you don ’ t get the money.
” Biden also criticized the administration for failing to disburse any money so far via the $ 600 billion Main Street lending facility for companies @ @ @ @ @ @ @ annual revenue .
That program , set up by the Federal Reserve and Treasury , is set to start up in June .
In a statement to CNBC responding to Biden ’ s remarks , a White House spokesman said the president “ has provided state and local leaders with data-driven guidelines to reopen their communities in safe , responsible ways , helped states ramp up their testing capabilities , and surged critical [ personal protective equipment ] and other supplies where they are needed.
” He added that the president has taken @ @ @ @ @ @ @ than ever before.
” The facts : Coronavirus response efforts passed by Congress and signed into law by Trump have expanded unemployment benefits for laid-off workers and provided nearly $ 300 billion for direct payments to Americans making up to $ 99,000 ( $ 198,000 for couples ) .
They have also boosted food and housing assistance , among a host of other provisions .
Congress and the administration have also provided $ 46 billion for emergency bailout funds to airlines and $ 670 billion for forgivable loans to small businesses under the @ @ @ @ @ @ @ The Small Business Administration said that , as of May 16 , it had approved more than 4.3 million forgivable PPP loans totaling more than $ 513 billion .
But the program has come under widespread criticism , especially after larger companies with stronger banking relationships were reported to have gotten loans .
Read his lips : Asked how quickly he might enact his proposals to raise taxes on corporations and high-earning individuals given the economic devastation of the pandemic , Biden dodged .
He said he would reverse the 2017 Trump tax @ @ @ @ @ @ @ for people making over $ 1 million a year .
His plans call for raising the corporate rate to 28 % and hiking taxes on those making more than $ 400,000 .
“ My tax policy is based on a simple proposition , ” Biden explained , “ which is , stop rewarding wealth and start rewarding work a little bit.
” Biden pledged that he would not raise taxes on anyone making under $ 400,000 a year .
“ Nobody making under 400,000 bucks would have their taxes raised .
Period .
@ @ @ @ @ @ @ corporate tax cuts : Biden also criticized the 2017 tax cuts and said reducing corporate taxes again would be a mistake .
“ The president is talking about a greater tax cut for corporations .
You tell me what you think , how many jobs that will create in the next six months ?
” he said .
The former vice president also criticized Amazon , saying that the online retail giant “ should start paying their taxes.
” “ The biggest corporate bailout in American history is asking next to nothing of @ @ @ @ @ @ @ “ I don ’ t think any company , I don ’ t give a damn how big they are , the Lord almighty , should absolutely be in a position where they pay no tax and make billions and billions and billions of dollars . ''
Amazon has said it pays “ every penny ” it owes .

Former Vice President Joe Biden on Friday slammed President Trump’s efforts to prop up the economy in the midst of the coronavirus pandemic, charging that the focus so far has been on helping large corporations and the very wealthy instead of smaller Main Street businesses.
“Almost 40 million Americans have filed for unemployment, and you know what the White House is proposing? More tax cuts for corporate America. I’ve got a novel idea – how about some relief for Main Street?” Biden, the presumptive Democratic presidential nominee, said in an interview with CNBC.
He added: “The president’s response to all this has cost lives and has cost jobs. The way to fix the economy is to get the public health response correct. What we’re doing now is upside-down – the bigger you are the faster you get the money, the smaller you are, you don’t get the money.”
Biden also criticized the administration for failing to disburse any money so far via the $600 billion Main Street lending facility for companies with less than $5 billion in annual revenue. That program, set up by the Federal Reserve and Treasury, is set to start up in June.
In a statement to CNBC responding to Biden’s remarks, a White House spokesman said the president “has provided state and local leaders with data-driven guidelines to reopen their communities in safe, responsible ways, helped states ramp up their testing capabilities, and surged critical [personal protective equipment] and other supplies where they are needed.” He added that the president has taken steps to “ensure we emerge stronger than ever before.”
The facts: Coronavirus response efforts passed by Congress and signed into law by Trump have expanded unemployment benefits for laid-off workers and provided nearly $300 billion for direct payments to Americans making up to $99,000 ($198,000 for couples). They have also boosted food and housing assistance, among a host of other provisions.
Congress and the administration have also provided $46 billion for emergency bailout funds to airlines and $670 billion for forgivable loans to small businesses under the Paycheck Protection Program (PPP). The Small Business Administration said that, as of May 16, it had approved more than 4.3 million forgivable PPP loans totaling more than $513 billion. But the program has come under widespread criticism, especially after larger companies with stronger banking relationships were reported to have gotten loans.
Read his lips: Asked how quickly he might enact his proposals to raise taxes on corporations and high-earning individuals given the economic devastation of the pandemic, Biden dodged. He said he would reverse the 2017 Trump tax cuts and raise taxes on capital gains for people making over $1 million a year. His plans call for raising the corporate rate to 28% and hiking taxes on those making more than $400,000. “My tax policy is based on a simple proposition,” Biden explained, “which is, stop rewarding wealth and start rewarding work a little bit.”
Biden pledged that he would not raise taxes on anyone making under $400,000 a year. “Nobody making under 400,000 bucks would have their taxes raised. Period. Bingo!” he said.
Criticizing corporate tax cuts: Biden also criticized the 2017 tax cuts and said reducing corporate taxes again would be a mistake. “The president is talking about a greater tax cut for corporations. You tell me what you think, how many jobs that will create in the next six months?” he said.
The former vice president also criticized Amazon, saying that the online retail giant “should start paying their taxes.”
“The biggest corporate bailout in American history is asking next to nothing of corporate America,” he said. “I don’t think any company, I don’t give a damn how big they are, the Lord almighty, should absolutely be in a position where they pay no tax and make billions and billions and billions of dollars." Amazon has said it pays “every penny” it owes.


thefiscaltimes--2020-05-22--Small Business Program Is Popular, but Congress Eyes Changes

Although critics say the $ 670 billion Paycheck Protection Program , which provides small businesses with loans and grants during the coronavirus crisis , is seriously flawed , there ’ s no doubt that it has been wildly popular .
Ernie Tedeschi of the research firm Evercore ISI says that , according to U.S. Census survey data , about 75 % of all non-farm small businesses with single locations have applied for assistance through the program , and nearly 90 % of those have received a check .
But many small business owners say that the PPP ’ s rules @ @ @ @ @ @ @ % of the funds on labor and use all of the money within eight weeks in order to transform the loans into grants that don ’ t have to be paid back – aren ’ t realistic and may leave some aid recipients with big loans on their books .
The House passed a bill last week that would extend the time to use the money to 24 weeks while eliminating the requirement to use most of the money for labor costs .
The Senate was working on its own version of a @ @ @ @ @ @ @ reach a deal before leaving town Thursday , despite threats from Sen. Cory Gardner ( R-CO ) to keep the chamber open in the absence of an agreement .
Senators were discussing an increase in the time period to use PPP funds to 16 weeks and an extension of the program , which is scheduled to expire on June 30 , to the end of the year .
Participants may also be allowed to use the funds for a wider range of expenses , including investments needed to reopen safely .
Although the @ @ @ @ @ @ @ session until June , there is some hope that a bill could pass next week through special procedures .
“ I don ’ t think we ’ re going to have a problem getting something done one way or the other on it , ” said Sen. Marco Rubio ( R-FL ) , who leads the small-business committee .

Although critics say the $670 billion Paycheck Protection Program, which provides small businesses with loans and grants during the coronavirus crisis, is seriously flawed, there’s no doubt that it has been wildly popular. Ernie Tedeschi of the research firm Evercore ISI says that, according to U.S. Census survey data, about 75% of all non-farm small businesses with single locations have applied for assistance through the program, and nearly 90% of those have received a check.
But many small business owners say that the PPP’s rules – which require participants to spend 75% of the funds on labor and use all of the money within eight weeks in order to transform the loans into grants that don’t have to be paid back – aren’t realistic and may leave some aid recipients with big loans on their books. The House passed a bill last week that would extend the time to use the money to 24 weeks while eliminating the requirement to use most of the money for labor costs.
The Senate was working on its own version of a revamp this week but was unable to reach a deal before leaving town Thursday, despite threats from Sen. Cory Gardner (R-CO) to keep the chamber open in the absence of an agreement. Senators were discussing an increase in the time period to use PPP funds to 16 weeks and an extension of the program, which is scheduled to expire on June 30, to the end of the year. Participants may also be allowed to use the funds for a wider range of expenses, including investments needed to reopen safely.
Although the Senate won’t be back in session until June, there is some hope that a bill could pass next week through special procedures. “I don’t think we’re going to have a problem getting something done one way or the other on it,” said Sen. Marco Rubio (R-FL), who leads the small-business committee.