An Update on CARES Act II Negotiations

An Update on CARES Act II Negotiations

Introduction: About a month ago, I explored the CARES Act's original programs and policies, and compared it with the proposed HEROES (Democratic House proposal) and HEALS (Republican Senate proposal) Acts. Since that point, negotiations over which proposal will become an extension of the CARES Act (which I refer to as "CARES Act II") are still ongoing, with several significant disagreements between the two parties in the way. Today's post will provide a more detailed summary of the negotiation status and what some of the major disputes are between the parties over what the final bill should contain. Note that the information presented below is accurate at the time of this article's publication (9/13/2020 at 8pm PST). This will also be one of the few posts I make that pertains too American Politics and public policy, as the policy proposal(s) in question is (are) still being debated and negotiated over, with neither having been passed in both Congressional Houses. 

Current Status: Since the original CARES Act post came out in early August, no CARES Act extension has passed both Houses of Congress as of the publication of this post (Rogers). Last week, a modified version ("Skinny Bill") of the Republican Senate proposal (The "HEALS Act") failed to pass the Senate's 60-vote threshold to overcome the Democratic filibuster (Raju; Rogers). Every Senate Democrat, along with Kentucky Republican Rand Paul (R), voted against the proposal (Rogers). 

Meanwhile, as of now, the Democratic House proposal, the status of the "HEROES Act," has not changed since passing the House in May. Prior to the "Skinny Bill" Senate vote last week, House Speaker Nancy Pelosi (D, CA-9) urged the Senate to consider and pass it (Schonter). 

Main Areas of Disagreement:

• Second Stimulus Check: One of the top disagreements between Congressional Democrats and Republicans is whether CARES Act II will contain a second round of stimulus checks. The "Skinny Bill" does not enact a new stimulus check (Long). Note that the original HEALS Act contained provisions for an additional stimulus check if passed (Adamczyk). As noted on the earlier blog post, the HEROES Act would include another round of stimulus checks (Long). Despite this conflict, President Trump has continued to support the inclusion of a second stimulus check (Fink, "Trump Wants"). Recent polling showed that 70% of Americans, including over 60% of Republicans and Independent voters, support a second stimulus check (Bieber). 
• Second Stimulus Check Eligibility: Going beyond whether there should even be a second stimulus check, debate continues over whether eligibility should be expanded from the CARES Act. In one area of agreement, both the HEROES and HEALS Acts would expand coverage to include adult dependents, especially college students and elderly Americans (Raymone). Additional contention continues over whether immigrants (including undocumented) should qualify for the stimulus checks, with Republicans arguing that undocumented non-citizens specifically should not be receiving benefits because of their status (Fink, "Should Undocumented"). Meanwhile, supporters of allowing immigrants to receive benefits argue that because most immigrants pay taxes and contribute to their communities, they should be eligible for such benefits (Garcia). The HEROES Act specifically would allow immigrants with IRS tax IDs (i.e. those who have paid income taxes) to qualify for the checks (Nerea). 
• Unemployment Assistance Extension: As detailed on the previous post, whether to extend the $600/week unemployment insurance further is among the most contentious policies in the current debate. Like stimulus checks, no agreement has come regarding whether the CARES Act level of unemployment insurance should be continued further (Colby and Dolcourt). Like before, the HEROES Act would extend the $600/week unemployment insurance through next January, whle the "Skinny Bill" would provide $300/week through December. By comparison, the original HEALS Act would have provided unemployment benefits as a proportion of workers' pre-COVID income, and would supplement President Trump's recent program (see below) (Lobosco et al.). 
• Last month, the Trump administration started the Lost Wages Assistance Program, which would provide a $300/week Federal subsidy to unemployed workers through the states. Qualifying workers would have to prove that their unemployment is due to COVID-19, and would already have to be receiving benefits. With no agreed-on proposal in Congress, most states have signed onto the program and begun to pay out. This program will only last 6 weeks from inception due to limited funding (Iacurci). In addition, existing CARES Act unemployment insurance funding to states lasts until November (Holzhauer). 
• Education Funding: One of the most notable aspects of the HEALS Act that Republicans have touted in recent weeks is whether Coronavirus aid should be given to private schools and families of students attending such schools. The HEALS Act included funding for private schools, something Democrats and other public school supporters have opposed (Winter). Senator Ted Cruz (R-TX) recently pitched a proposal for tax cuts aimed at private schools to make them more affordable for families and provide more options. Likewise, advocates of public schools have opposed this measure, although Senator McConnell raised concerns that this proposal may not be accepted by the whole Senate Republican caucus ("Cruz's Demand"). Furthermore, both the HEALS Act and the "Skinny Bill" would tie education funding to schools re-opening for in-person instruction, something the HEROES Act would not (Lobosco et al.). 
• Institutional Liability Protection: In addition to direct fiscal assistance for individuals, families, and businesses, the HEALS Act (and the "Skinny Bill" derivative) contains a liability protection clause protecting employers from COVID-related lawsuits. Specifically, it would protect from lawsuits alleging that said institution did not take appropriate steps to prevent the transmission of COVID-19 to workers. Lack of such actions would have to constitute "gross negligence" and would have to be proven to be a direct cause of a worker contracting the virus. Current Democrat proposals would not include a lawsuit liability provision, instead providing more assistance to helping employers protect workers (Lobosco et al.). 
• Assistance for Local and State Governments: The original CARES Act provided significant financial assistance to state, local, and tribal governments, which bear a significant fiscal and financial burden from the virus's economic effects (Sanchez). The recent "Skinny Bill" would not have included state and local assistance, although the HEALS Act would provide more time for states to utilize existing funding. Meanwhile, the HEROES Act would provide another package of fiscal aid to state and local governments to help cover fiscal shortfalls and pay expenses (Lobosco et al.).
• Total Appropriation: In addition to specific programs and policies between the different proposals, the overall amount appropriated for both bills is a minor flash-point in current negotiations. Generally, Republican proposals have aimed to reduce the overall fiscal cost to the Federal government, with the "skinny bill" topping at $1 trillion. Meanwhile, the HEROES Act's current cost is estimated to be $2.2 trillion, less than the original estimate of $3.2 trillion (Godbout). 

Works Cited:

Adamczyk, Adam. "The GOP’s ‘skinny’ coronavirus relief bill doesn’t include a second round of stimulus checks." CNBC, 9 Sept. 2020, www.cnbc.com/2020/09/09/gops-skinny-coronavirus-relief-bill-doesnt-include-stimulus-checks.html. Accessed 12 Sept. 2020.

Bieber, Christy. "70% of Americans Want a Second Stimulus Check. What's the Holdup?" The Motley Fool, 12 Sept. 2020, www.fool.com/investing/2020/09/12/70-of-americans-want-a-second-stimulus-check-whats/. Accessed 13 Sept. 2020. 

Colby, Clifford, and Jessica Dolcourt. "If a stimulus bill passes, these are the benefits Americans could get." CNET, last modified 11 Sept. 2020, www.cnet.com/personal-finance/if-a-stimulus-bill-passes-these-are-the-benefits-americans-could-get/. Accessed 13 Sept. 2020. 

"Cruz's Demand for 'School Choice' May Derail Coronavirus Stimulus Checks." ValueWalk, 7 Sept. 2020, www.valuewalk.com/2020/09/coronavirus-stimulus-checks-cruz/. Accessed 13 Sept. 2020. 

Fink, Jenny. "Should Undocumented Immigrants Receive Stimulus Checks? Trump Says No, Vermont Says Yes." Newsweek, 10 Sept. 2020, www.newsweek.com/should-undocumented-immigrants-receive-stimulus-checks-trump-says-no-vermont-says-yes-1530979. Accessed 13 Sept. 2020.

---. "Trump Wants to Use $300 Billion for Stimulus Checks, Here's Who Wouldn't Qualify." Newsweek, 7 Sept. 2020, www.newsweek.com/trump-wants-use-300-billion-stimulus-checks-heres-who-wouldnt-qualify-1530135. Accessed 13 Sept. 2020. 

Garcia, Jacqueline. "Undocumented immigrants could qualify for $600 if Newsom signs pandemic assistance bill." CAMatters, 5 Sept. 2020, calmatters.org/california-divide/2020/09/undocumented-immigrants-pandemic-relief-bill/. Accessed 13 Sept. 2020. 

Godbout, Ted. "Senate Fails to Advance Scaled-back COVID-19 Stimulus Bill." National Association of Plan Advisors, 12 Sept. 2020, www.napa-net.org/news-info/daily-news/senate-fails-advance-scaled-back-covid-19-stimulus-bill. Accessed 13 Sept. 2020. 

Holzhauer, Brett. "What Could Happen Now That The Skinny Stimulus Bill Failed." Forbes, 11 Sept. 2020, www.forbes.com/advisor/personal-finance/what-could-happen-now-that-the-skinny-stimulus-bill-failed/. Accessed 13 Sept. 2020. 

Iacurci, Greg. "Trump’s unemployment program pays up to $1,800 in extra benefits to workers who qualify." CNBC, 11 Sept. 2020, www.cnbc.com/2020/09/11/lost-wages-assistance-pays-up-to-1800-in-extra-unemployment-benefits.html. Accessed 13 Sept. 2020. 

Lobosco, Katie, Tami Luhby, and Jeanne Sahadi. "Here's what's in the GOP's 'skinny' stimulus bill -- and what's missing." WENY, 8 Sept. 2020, www.weny.com/story/42604587/heres-whats-in-the-gops-skinny-stimulus-bill-and-whats-missing. Accessed 13 Sept. 2020. 

Long, Emily. "Second stimulus check for $1,200 isn't off the table yet — here's where talks stand." Tom's Guide, 10 Sept. 2020, www.tomsguide.com/news/stimulus-check-2-skinny-status. Accessed 12 Sept. 2020. 

Menton, Jessica. "'We shouldn’t have to beg': Americans struggle without unemployment aid as Congress stalls on extending benefits." USA Today, 25 Aug. 2020, www.usatoday.com/story/money/2020/08/25/unemployment-benefits-americans-struggle-with-delayed-300-unemployment-coronavirus-stimulus/3411294001/. Accessed 13 Sept. 2020. 

Narea, Nicole. "Immigrants were largely overlooked in the US’s coronavirus response. The latest relief bill aims to fix that." Vox, 15 May 2020, www.vox.com/2020/5/15/21257361/heroes-act-coronavirus-bill-immigrants. Accessed 13 Sept. 2020. 

Raju, Manu. "Amid GOP divisions, McConnell sets stage for showdown stimulus vote with Democrats." CNN, 8 Sept. 2020, www.cnn.com/2020/09/08/politics/mitch-mcconnell-gop-skinny-plan/index.html. Accessed 13 Sept. 2020. 

Raymone, Allison DeNisco. "Under 25? Here's how you might get your own stimulus check money." CNET, 13 Sept. 2020, www.cnet.com/personal-finance/under-25-heres-how-you-might-get-your-own-stimulus-check-money/. Accessed 13 Sept. 2020. 

Rogers, Alex. "After negotiations falter, Senate fails to advance Republican bill addressing coronavirus pandemic." CNN, 10 Sept. 2020, www.cnn.com/2020/09/10/politics/stimulus-package-vote-republican-senators/index.html. Accessed 13 Sept. 2020. 

Sanchez, Humberto. "Indy DC Download: Senate Democrats Block GOP's Skinny pandemic bill as standoff on aid continues." The Nevada Independent, 13 Sept. 2020, thenevadaindependent.com/article/indy-dc-download-senate-democrats-block-gops-skinny-pandemic-bill-as-standoff-on-aid-continues. Accessed 13 Sept. 2020. 

Schonter, Allison. "Second Stimulus Check: Nancy Pelosi Continues Pushing for HEROES Act to Be Passed Ahead of GOP Vote." Pop Culture, 9 Sept. 2020, popculture.com/trending/news/second-stimulus-check-nancy-pelosi-continues-pushing-heroes-act-passed-ahead-gop-vote/. Accessed 12 Sept. 2020. 

"Stimulus Deal Unlikely Until After the Election." WKTV, 10 Sept. 2020, www.wktv.com/content/news/572374512.html. Accessed 12 Sept. 2020. 

Winter, Allison. "U.S. Senate Republicans Trying To Insert Private School Tuition Into The Next COVID-19 Aid Package." Patch Across Florida, 4 Sept. 2020, patch.com/florida/across-fl/u-s-senate-republicans-trying-insert-private-school-tuition-next-covid-19-aid. Accessed 13 Sept. 2020. 

     Nathan Parmeter

     Author and Host, The Parmeter Politics and Policy Record