COVID-19 Relief Bill Fails in the Senate
This week, the Senate held a vote on a trimmed down COVID-19 emergency supplemental legislation that was offered by Senate Republicans. The bill included $300 in weekly federal unemployment benefits through the end of the year and an additional $258 billion for the Paycheck Protection Program loans, designed to allow those who have already borrowed to do so again. However, the bill did not provide any housing or rental assistance, no stimulus payments and included no aid to state and local governments. The vote failed along party lines, with one Republican, Senator Rand Paul (R-KY), voting against the bill with all 46 Democratic Senators and two independent Senators.
Barring a grand compromise on the next COVID-19 emergency supplemental funding bill, the Senate is now shifting focus and is seeking to pass a continuing resolution to keep government agencies open past September 30th. Treasury Secretary Steve Mnuchin and House Speaker Nancy Pelosi (D-CA) agreed last week to pass a clean continuing resolution, free of any poison pill amendments or riders that would derail the process entirely. However, the path towards passing a Continuing Resolution to fund the government past September 30th, a deal that is free of any controversial amendments, remains uncertain.
But a deal is no forgone conclusion as Democratic and Republican leaders have yet to agree on an end date. Republicans want the continuing resolution to fund the government into December. The logic being that if President Trump loses the election or if Republicans lose the Senate, they will still have part of a lame duck session (the time between the election on November 3rd and the presidential inauguration on January 20 ) to pass legislation before the start of a new Congress. Democrats, on the other hand, want the continuing resolution to go into March, preventing any legislative mechanization on the part of Republicans. The biggest obstacle in the end, however, may be time. The House goes into recess on October 2nd, and the Senate follows the week after on October 9th. This gives Congress roughly 12 business days to reach an agreement before the government shuts down on September 30th.
To help jump-start negotiations, NAHMA joined with other affordable housing stakeholder groups and published a full page ad in Politico, asking Congress to urgently return to the negotiating table and to provide additional rental assistance in the wake of the CDC’s eviction moratorium. NAHMA also sent out a grassroots alert this week to members, asking Congress to provide rental assistance to ensure the stability of the housing market and the financial health of our communities. Specifically, NAHMA’s grassroots alert warned lawmakers and their staff that the federal eviction moratorium is a recipe for disaster for renters and housing providers alike, and that rental assistance must be provided in order to prevent a catastrophic collapse. As Congress continues to debate on future COVID-19 emergency funding, we request that members continue to reach out to lawmakers–if they have not done so yet–to educate them on the need for additional housing assistance and the negative consequences of a blanket eviction moratorium.
House Committee Hearing on Financial Aid for States and Territories during COVID-19
On September 10th, the House Financial Services Committee held a full Committee hearing on the urgent need for Congress to provide financial relief to the nation’s states and territories during this pandemic. Witnesses invited by the Democrats included Governors Laura Kelly (D-KS), Lujan Grisham (D-NM), Leon Guerrero (D-GU) and Tim Walz (D-MN). House Republicans on the Committee did not invite Republican governors to participate as witnesses. According to the National Conference of State Legislatures, statehouses have approved over $3.5 billion in unanticipated expenditures to combat the COVID-19 virus. Witnesses underscored this point and described how state and territory governments have been on the front lines of the response to the crisis, with many states continuing to support more testing, are purchasing personal protective equipment and other critical medical supplies, and are working ensure a robust public health response to the crisis. At the same time, states and territories are experiencing steep declines in state tax revenue, making their efforts that much more difficult. Congressional Budget Office projections referenced during testimony showed the total budget shortfall for state and local governments for next year will be $1 trillion.
To view the full House Financial Services Committee hearing on The Need for Financial Aid to America’s States and Territories During the Pandemic: Supporting First Responders, Assisting Schools in Their Efforts to Safely Educate, and Preventing Mass Layoffs, click here.