Last week, the Senate failed to advance legislation intended to work as an interim measure in between the robust CARES Act and a potential “stimulus 4” package later this month. The Senate Majority announced plans to pass an emergency supplemental package of an additional $250 billion for small business loans. This quickly escalated into a partisan spat, with Senate and House Democrats demanding more direct stimulus to state and local governments.
This morning, House Majority Leadership followed suit and released a legislative outlinecontaining their demands.
While no bond provisions are included, on top of the additional $250 billion to small businesses, this legislation would work to assist state and local governments by:
- Providing an additional $150 billion in fiscal relief to states, tribes and localities available to be used for lost revenues.
- The bill would also make the $150 billion Coronavirus Relief Fund (CRF) in the CARES Act available to be used for lost revenues; and
- The District of Columbia is considered a State under this bill and for the CRF in the CARES Act.
It is believed that many other features of the House outline will be DOA in the Senate. At this time, there have been few indications on when leaders from both Chambers and the Administration plan to begin work on a compromise plan.
The BDA will continue to provide updates as they become available.