Northwest Arkansas Democrat-Gazette
Relief measure clears House
Legislation adds funds for lending
WASHINGTON — The House passed a $484 billion spending package Thursday as the unemployment crisis deepened and policymakers continue working to save an unraveling economy.
The vote was 388-5 with Rep. Justin Amash, I-Mich., voting “present.”
The legislation was negotiated between the Trump administration and congressional leaders after the small-business Paycheck Protection Program — created as part of Congress’ $2 trillion economic stimulus package — ran out of money last week and stopped processing loans.
With the latest bill, initially Republicans had sought immediate action on President Donald Trump’s request for the small-business money, but Democrats had demanded equal funding for their priorities, frustrating Republicans who accused them of seeking leverage during the crisis.
Republicans said delays in replenishing the paycheck subsidy program had probably pushed some struggling businesses over the edge into closure.
On Thursday, the Labor Department announced that 4.4 million Americans sought unemployment benefits last week. More than 26 million people have filed jobless claims since the novel coronavirus knocked the U.S. economy off course last month, beginning an economic tailspin.
“Millions of people out of work,” said House Speaker Nancy Pelosi, D-Calif. “This is really a very, very, very sad day. We come to the floor with nearly 50,000 deaths, a huge number of people impacted, and the uncertainty of it all. We hope to soon get to a recovery phase. But right now we’re still in mitigation.”
President Donald Trump is scheduled to sign the bill during a White House ceremony today. The Senate passed the measure earlier this week.
The president celebrated the bill’s passage at his daily White House briefing Thursday. “At a time when many Americans are enduring significant economic challenges, this bill will help small businesses to keep millions of workers on the payroll,” he said.
Lawmakers from both parties are already talking about pursuing more large spending bills to try to contain the pandemic’s economic fallout, but this week’s measure could be the last one for at least several weeks. Congress is not scheduled to return to Washington until May 4 at the earliest.
“We are all painfully aware that the American people are worried about their health, their jobs, the economy and what life will look like after the emergency subsides,” House Ways and Means Chairman Richard Neal, D-Mass., said. “But I want to be clear, this does not come close to addressing the staggering needs of the American family.”
Congress has now committed almost $3 trillion in emergency spending to battling the economic fallout from the coronavirus.
The Treasury Department on Thursday issued guidance making it harder for publicly traded companies to qualify for money that was supposed to go to small businesses, threatening penalties in some cases if firms don’t repay money they had already received.
And the Federal Reserve announced that it would be disclosing the names of companies that receive funding from some of its assistance programs after complaints that the central bank wasn’t being transparent about where the taxpayer aid was going.
The new measure that passed Thursday includes $310 billion to replenish the Paycheck Protection Program, $60 billion for a separate small-business emergency loan and grant program, $75 billion for hospitals and health care providers, and $25 billion for a new coronavirus testing program.
The Trump administration had initially asked Congress to approve $250 billion to bolster the Paycheck Protection Program with no strings attached, but Democrats refused. They pushed for spending for hospitals and testing, as well as changes to the small-business program itself to make sure more money goes to lesser-served communities and through smaller lenders.
The program has proved popular but also controversial, in part because some large hotel and restaurant chains were able to access the money while many smaller firms were blocked out. Acknowledging these disparities, the Treasury Department on Thursday said Paycheck Protection Program loan recipients are expected to self-certify “in good faith” that they actually need the loans.
The Small Business Administration retains the right to audit borrowers later.
In late March the House approved the $2 trillion Coronavirus Aid, Relief and Economic Security Act on a voice vote with a bare majority present.
But despite the concerns expressed by many lawmakers about returning to Washington in the midst of a pandemic, the vast majority of House members were present Thursday, with only about 35 absent.
Rep. Alexandria Ocasio-Cortez, D-N.Y., bucked her party’s leaders and voted against the measure, saying Congress must be doing more to help her hard-hit district. A handful of conservative Republicans also voted “no,” with some raising concerns about the deficit.
As lawmakers discussed the measure, Rep. Maxine Waters, D-Calif., announced on the House floor that her sister was dying in St. Louis after recently contracting covid-19.
The bill was the fourth economic rescue and stimulus measure Congress has passed in the past two months to deal with the ravages of the coronavirus, bringing the total federal commitment close to $3 trillion.
Lawmakers have already begun to debate what next steps to take, with Democrats and Trump pushing for quick action on another rescue bill that would include funding for cities and states left out of the legislation that passed Thursday.
After the Senate passed the latest bill Tuesday, Senate Majority Leader Mitch McConnell, R-Ky., declared that Republicans would entertain no more coronavirus rescue legislation until the Senate returns to Washington, promising rank-and-file Republicans more say in the future legislation, rather than leaving it in the hands of top bipartisan leaders.
McConnell has expressed opposition to aiding states in such a way, telling a conservative radio show host Wednesday that perhaps some states should have the option of falling into bankruptcy. That elicited anger Thursday from some governors and House Democrats.
“Mitch McConnell probably regrets saying that,” said Republican Gov. Larry Hogan of Maryland. “If he doesn’t regret it yet, I think he will regret it.”
Arkansas’ U.S. Rep. Steve Womack, R-Ark., said “I just don’t like the idea of states going bankrupt. In a perfect world, every state would operate the way Arkansas operates with a balanced budget amendment, a revenue stabilization act and a constant review of income and expense.”
“I’m not a big fan of state bankruptcies, but then again, I’m not a fan of bailouts either. The federal government is bailing out different entities for poor decisions. And let’s face it: There’s a lot of poor decisions. … Arkansas is a very responsible entity, and I’m proud of that and I don’t think the ones that are doing it right should have to bail out the ones that have made some very poor decisions over time,” Womack said.
He also talked about how, when he was mayor of Rogers, the city had tightened its belt and built up reserves so that money would be available in case of unforeseen circumstances.
The Paycheck Protection Program is intended to help businesses with fewer than 500 employees keep workers on payrolls by extending loans of up to $10 million that can be forgiven if employers keep paying their workforces. Its rollout saw overwhelming demand, and some small businesses were unable to get loans even as some large businesses, such as Ruth’s Chris Steak House, obtained loans through big banks. Ruth’s Chris is a chain that has more than 100 steakhouses in 3 countries, including the U.S.
Information for this article was contributed by Erica Werner, Aaron Gregg, John Wagner, Erin Cox and Brittany Shammas of The Washington Post; by Andrew Taylor, Alan Fram, Laurie Kellman, Mary Clare Jalonick and Matthew Daly of The Associated Press; and by Frank E. Lockwood of The Arkansas Democrat-Gazette.