Senate Republicans propose new COVID-19 relief bill with further stimulus and paycheck protection funds

Congress appears to be moving toward additional action on COVID-19 response after Republican leaders in the U.S. Senate unveiled their legislative plan to address several aspects of the ongoing COVID-19 pandemic yesterday evening. Known as the "HEALS Act," the legislation includes multiple items of interest to county boards of DD, providers, and the people they serve. This legislation is the Senate Republican counter-proposal to the HEROES Act, passed by the U.S. House earlier this summer.

 

Among the most publicized components of the legislative package is the inclusion of an additional individual stimulus program. The Senate version is based upon the stimulus program included in the CARES Act, which generally provided $1,200 per individual and $500 per dependent. The same income caps would apply as under the CARES Act. While some details need to be worked out, both the HEALS Act and the HEROES Act contain a version of this stimulus program, making it the only point of agreement between the two chambers.

 

The bill includes $290 billion in additional funding for SBA loan programs, including the Paycheck Protection Program (PPP), targeted at specific sectors of the economy, businesses in low-income census tracts, and businesses experiencing greater than 50% reduction in gross revenues. Certain SBA requirements will be relaxed and the list of allowable uses of the funds will be expanded under the bill, allowing for greater flexibility for borrowers. The bill also establishes the opportunity to apply for PPP Second Draw loans for companies who are already participating in the program.

 

The legislation also establishes comprehensive civil immunity for COVID-19 claims through the creation of a new federal cause of action which would be the exclusive cause of action for all COVID-19 claims, preempting all state laws. Entities following established public health guidelines would be protected by a safe harbor provision. This safe harbor would also extend to situations where multiple guidelines may be in conflict, provided that the entity complies with at least one set of guidelines. In any suit filed under this provision, the plaintiff would have to prove gross negligence or willful misconduct on the part of the defendant to prevail.

 

The bill extends additional funding to the Governors Emergency Education Relief Fund, a fund originally established under the CARES Act. The HEALS Act provides an additional $5 billion to this fund, which can be used by governors at their discretion to assist with COVID-19 related education costs in their state. Previous OACB advocacy efforts secured county board inclusion in the distribution of the original CARES Act allocation to this fund, though any future disbursements would again be at the discretion of the governor.

 

The HEALS Act also includes authority for the Secretary of Education to grant waivers of certain components of the ESEA and IDEA. These components are still being evaluated by OACB staff for any potential impact on county boards or people with developmental disabilities and updates will be provided in future editions of Policy Brief if the provision remains a component of the bill.

 

The legislative package has not yet been voted on in the Senate. Considerable debate and numerous changes to the bill are likely. OACB will continue to follow the legislative process and report any developments.