COVID-19 Legislative Update

June 1, 2020

Cornerstone Clients- Please see below for updates on legislation related to COVID-19. Updates are sent every Monday, Wednesday, and Friday evening. For past updates, click here. For updates before May 8, click here. Iowa At 10 a.m. Monday, the state was reporting 538 COVID-19-related deaths, an increase of five deaths since the state's tally at 10 a.m. Sunday. The state was reporting at 10 a.m. Monday that there are 19,688 confirmed cases of COVID-19, an increase of 204 since 10 a.m. Sunday. Of the 19,688 people who have tested positive, 11,185 have recovered, according to the state. The total number of people tested is 159,292.

Federal Legislation

Supplemental IV – The Heroes Act (HR 6800)

Timeline/Process/Politics: Republicans continue to assert they want to take more time before taking

up another coronavirus supplemental. Internal Republican conversations are ongoing, but

bipartisan negotiations have yet to begin. The timing of the next supplemental could be sped up

with pressure from PPP exhausting funds, rising unemployment, finding agreement on liability

protection, and other economic data. A final bill could come in June, July, or even as late as August,

depending on how negotiations go.

Policy: Republicans remain adamant that liability protections must be included in the next

supplemental. Language has yet to be shared but has been drafted. Liability protection provisions

could be a window (2019-2024) that covers all employers, though it will likely not be universal.

As mentioned previously, Senate Republicans are increasingly concerned about the expanded

unemployment insurance becoming a disincentive for employees to return to work. Sen.

Portman and others have been working on ideas to prevent and mitigate that disincentives.

Disincentive mitigation may end up in the tax space or unemployment insurance space.

The Heroes Act passed the House on May 15 and can serve as an outline of Democratic priorities

(to a certain extent). Heroes Act text (as of 5/12/2020) here. Section by section here. One pager

here. State and Local one pager here. NCAI’s summary on tribal provisions here. Manager’s

amendment here. House Rules Committee report here.

Legislation to Watch

Paycheck Protection Program Flexibility Act: Last week, the House passed the Paycheck Protection

Program Flexibility Act (HR 7010) 417-1. additional funding for the program is included in the

bill – its focus is to make the program more flexible. Senate Republicans have voiced concern

that the bill disincentives rehiring workers and taking out loans. Senator Rubio has talked about

hotlining the House-passed bill this week. There have been conversations with Treasury on

clarifying some parts of the House bill and seeing if some fixes can be made administratively. The

Senate may not be able to hotline the bill as-is.

Text here. Highlights below.

Allow loan forgiveness for expenses beyond the 8-week covered period.

Lowers the limitation that restrict non-payroll expenses (rent, utilities) to 40% of the loan.

Eliminate limitations that restrict loan terms to 2 years.

Allow businesses that take PPP loans to be eligible for payroll tax deferment.

Extend the rehiring deadline to align with the enhanced Unemployment Insurance to offset its

effects.

Clarify safe harbor language, specifically that an “inability to return to the same level of

business activity,” refers to compliance with HHS, CDC, OSHA standards or any other

worker/customer safety requirement related to COVID-19.

Allows borrowers to defer payments until SBA has made forgiveness determination.

Infrastructure: On Wednesday, the House Transportation and Infrastructure Committee plans to

propose their piece of a surface transportation reauthorization bill. The proposal will likely

include almost $500 billion in funding. Expected highlights below:

Temporary limits on local match requirements (due to pandemic)

Climate and Safety:

o $6.25 billion for states to prepare for and respond to climate change impacts

o $1.75 billion for EV charging

o $6.25 billion for bicycle and pedestrian infrastructure

o Investments in materials that assist with carbon reduction

o Carbon pollution reduction program aimed at flexibility for eligible expenses

$311 billion for highways (42% increase):

o $28 billion for bridge investments

o Gridlock reduction program

o New discretionary gran programs with strict evaluation criteria

o Large increases for tribal programs/federal lands/territories

$105 billion for transit (57% increase):

o Changes to the urban formula fund

o Give transit agencies flexibility to spend funding on mobility services

o Buy America provisions

o Priority to agencies with oldest buses

o Program for zero emission buses

o Direct funding to focus on low-income users

o New office in FTA to aid governments with coordinating housing and transit planning

$60 billion for rail:

o New grant program for expansion of passenger rail

o CRISI program would receive $7 billion over 5 years

o New grant program for grade separation projects ($2.5 billion over 5 years)

o Rail safety awareness grant program ($5 million every year).

Passed Legislation

Moving forward, this section will only include new information and guidance. For past information

and guidance and passed legislation, please refer to the archives.

New Implementation Information and Guidance

None

Congress Hearings/Floor Activity: The Senate will be in session this week and will be in session until the July 4 recess. The Senate’s focus will be nominations, hearings and committee business, Paycheck Protection Program technical changes, COVID-19 supplemental(s), NDAA, surface transportation reauthorization, WRDA, FISA, appropriations, and legislation relating to China. Leader Hoyer released an updated House calendar last week (calendar here) – it shows no voting days until June 30. In the Dear Colleague accompanying the calendar, Leader Hoyer explained that committee work will be the primary focus, outlining NDAA, appropriations, surface transportation reauthorization, WRDA, and expansion of the ACA as “must-pass” legislation. Leader Hoyer also noted that should additional votes be necessary for COVID-19 related legislation, members will be given 72 hours’ notice before votes. Appropriations: The Senate Appropriations Committee has released its 302(b) allocations to the subcommittee clerks. SAC plans to markup bills June 15-19, though it may slip to July. SAC will likely not markup the Homeland Security and MilCon/VA bills. Subcommittees may poll their member rather than meet in person and save the in-person markups for full committee, to minimize the number of times that committee members have to gather. to minimize the number of times that committee members have to gather. The House Appropriations Committee aims to begin its FY21 markups after July 4 recess, with subcommittees marking up on July 6-7. Full committee will markup later that week or the next. From there, the committee is aiming to push all the bills to the House floor during the last two weeks of July, likely in two minibuses. Majority Leader Hoyer has said he wants to pass all the appropriations bills before the August recess. House, Senate, and the White House have settled on an agreement for Veterans Affairs funding to exempt the Veteran’s Choice health care program from the budget caps and categorize it as emergency spending. This would save $11-$12 billion on the discretionary side and increase the odds of producing bipartisan bills. NDAA: SASC is set to markup subcommittees next week (June 8-9) and hold the full committee markup June 10. MLAs have received their books and will be briefed tomorrow. Amendments are due 6 p.m. on Thursday, June 4. The HASC markup is tentatively scheduled for the end of June. Subcommittees will likely go on the week of June 22-26 and full committee will markup the last week of June or the week after. Markups will likely take place in a larger hearing room than normal. Aim is to pass the bill before August recess. Remote voting/virtual protocols: Last week was the first week the House allowed proxy voting and remote hearings and markups. There were no noticeable glitches for proxy voting, but no House Republicans voted by proxy. Last week, House Republicans sued House officials in attempt to block remote voting. The Senate has not moved forward with any proxy voting or remote procedures. Members of Congress in Quarantine or Treatment (new additions in bold)

Tested Positive (0): Currently Self-Quarantined (0): Recovered (7): Sen. Rand Paul (R-KY), Rep. Joe Cunningham (D-SC), Rep. Ben McAdams (D-UT), Rep. Mario Diaz-Balart (R-FL), Rep. Mike Kelly (R-PA), Rep. Nydia Velazquez (D-NY), Rep. Neal Dunn (R-FL) Completed Quarantine (38): Sen. Ted Cruz (R-TX), Rep. Mark Meadows (R-NC), Sen. Lindsay Graham (R-SC), Rep. Don Beyer (D-VA), Rep. Sharice Davids (D-KS), Rep. Doug Collins (R-GA), Rep. Paul Gosar (R-AZ), Sen. Cory Gardner (R-CO), Sen. Rick Scott (R-FL), Rep. Matt Gaetz (R-FL), Rep. Jason Crow (D-CO), Rep. Julia Brownley (D-CA), Rep. Ben Ray Luján (D-NM), Rep. Gwen Moore (D-WI), Rep. Stephanie Murphy (D-FL), Rep. John Yarmuth (D-KY), Rep. Adam Schiff (D-CA), Rep. Vincente Gonzalez (D-TX), Rep. Drew Ferguson (R-GA), Rep. David Schweikert (R-AZ), Rep. Anthony Brindisi (D-NY), Rep. David Price (D-NC), Rep. Ann Wagner (R-MO), Rep. Kathleen Rice (D-NY), Rep. Matt Cartwright (D-PA), Rep. Tom Cole (R-OK), Rep. Steve Scalise (R-LA), Rep. Frederica Wilson (D-FL), Rep. Andy Kim (D-NJ), Rep. Kendra Horn (D-OK), Sen. Mike Lee (R-UT), Sen. Mitt Romney (R-UT), Rep. Katie Porter (D-CA), Rep. Seth Moulton (D-MA), Rep. Lizzie Fletcher (D-TX), Rep. Josh Gottheimer (D-NJ), Rep. Ayanna Pressley (D-MA), Rep. Mikie Sherrill (D-NJ), Sen. Lamar Alexander (R-TN)

COVID-19 Compilation

June 1, 2020

Good evening Cornerstone Clients,

As a flow up to our legislative email and after just over four months of updates, here are today's COVID-19 headlines

and helpful tidbits. I’m happy to answer questions, accommodate requests, and take suggestions as they arise. If

you’re interested in looking back on previous editions of the COVID-19 Compilation, check out the archives.

Washington, D.C.

CMS announced enhanced enforcement for nursing homes with violations of longstanding infection control

practices. The new accountability measures are based on early trends in the most recent data regarding

incidence of COVID-19 in nursing homes, as well as data regarding the results of the agency’s targeted

infection control inspections. CMS is increasing enforcement (e.g., civil money penalties (CMPs)) for

facilities with persistent infection control violations, and imposing enforcement actions on lower level

infection control deficiencies to ensure they are addressed with increased gravity.

Last week, the FDA issued a new FDA Voices, Bringing a Cancer Doctor’s Perspective to FDA’s Response

to the COVID-19 Pandemic. It explains how the agency plays a role in helping to move new medical

products to patients and evaluate the potential benefits and risks of these new products.

The FDA is hosting a virtual Town Hall on June 3rd at 12:15 PM for clinical laboratories and commercial

manufacturers that are developing or have developed diagnostic tests for COVID-19. The purpose of this

Town Hall is to help answer technical questions about the development and validation of tests for COVID-

19.

HHS announced a task order with Emergent BioSolutions to advance manufacturing capabilities and

capacity for a potential COVID-19 vaccine as well as therapeutics. The task order is worth approximately

$628 million and falls under an existing contract with BARDA. Under the task order, Emergent will commit

contract development and manufacturing organization (CDMO) drug substance and drug

product manufacturing capacity valued at approximately $542.75 million for production of COVID-19 vaccine

candidates through 2021, in addition to an investment of approximately $85.5 million for the rapid expansion

of Emergent’s viral and non-viral CDMO fill/finish capacity for vaccine and therapeutic manufacturing.

The CDC has updated their guidelines for schools and day camps, and information for healthcare

professionals. Please continue to check the CDC dashboard where they post updated guidance daily.

The CDC will resume its regular briefings on COVID-19 following a three-month hiatus. The last regular

briefing was March 9th.

There are multiple COVID-19 hearings set for this week. **memo available upon request:

o Tuesday (6/2) 10 AM Senate Judiciary, "Best practices for incarceration and detention during

COVID-19"**

o Tuesday (6/2) 11:30 AM House Energy and Commerce, "On the Front Line: How Governors are

Battling the COVID-19 Pandemic"

o Tuesday (6/2) 2:30 PM Senate Finance, "COVID-19 and Beyond: Oversight of the FDA’s Foreign

Drug Manufacturing Inspection Process"

o Wednesday (6/3) 10 AM Senate Small Business, "Perspectives from Main Street: COVID-19’s

Impact on Small Business"

o Wednesday (6/3) 11 AM House Judiciary, "Protecting the Right to Vote During the COVID-19

Pandemic"

o Wednesday (6/3) 1 PM House Budget, "Addressing the Economic Impacts of COVID-19: Views

from Two Former CBO Directors"

o Wednesday (6/3) 2:30 PM Senate Commerce, "The State of Transportation and Critical

Infrastructure: Examining the Impact of the COVID-19 Pandemic"**

o Thursday (6/4) 10 AM Senate HELP, "COVID-19: Going Back to College Safely"**

o Thursday (6/4) 11 AM House Appropriations, "COVID-19 Response"**

o Thursday (6/4) 1 PM House Administration, "The Impact of COVID-19 on Voting Rights and

Election Administration: Ensuring Safe and Fair Elections"

Republicans have started putting together their priorities for the next COVID-19 supplemental appropriations

bill. For an in-depth briefing on the legislative landscape, please refer to the COVID-19 Legislative Update,

which is published on Mondays, Wednesdays, and Fridays. If you do not receive the Legislative Update and

would like to subscribe, email sfuller@cgagroup.com

Updates from the States

Out of the cases under investigation detected by U.S. surveillance, there are 1,787,680 total cases

and 104,396 deaths The CDC data closes out the day before reporting.

Houston Mayor Sylvester Turner declared Monday a day of mourning for all those who have lost their lives

to COVID-19.

Washington, D.C., reported a spike of COVID-19 cases, pushing back the timetable for moving to the

second phase of reopening additional businesses and public spaces. D.C. would need to record a 14-day

decline in cases of community spread in order to complete phase one and move on to phase two.

New Jersey Gov. Phil Murphy (D) announced that his state is on track to move to stage two in the reopening

process June 15th. Outdoor dining and nonessential retail will be permitted to open with limited capacity at

that time. Personal care businesses like salons will be allowed to open June 22nd, and Gov. Murphy said he

hopes fitness centers will be permitted to open in some capacity shortly after that. He stressed citizens

should continue social distancing and wearing face coverings.

Louisiana Gov. John Bel Edwards (D) said that the state can move to phase two of reopening on Friday.

Under phase two, bars and spas will be able to reopen, and restaurants and businesses that have been

operating at 25 percent capacity will be able to move to a 50 percent occupancy.

o New Orleans will stay in phase one per orders from Mayor LaToya Cantrell.

Atlanta Mayor Keisha Lance Bottoms issued an EO to extend the hazard pay for the city’s COVID-19 front

line employees.

Maine Gov. Janet Mills (D) signed an EO continuing but relaxing Maine’s “Stay Safer at Home” Order, which

has Maine people stay-at-home with exceptions, allowing people to visit more businesses and participate in

more activities as they reopen under the Restarting Maine’s Economy Plan.

Illinois Gov. JB Pritzker (D) announced that all four regions of Illinois can move to Phase 3 of the “Restore

Illinois” plan to reopen the economy. The city of Chicago will delay its reopening until June 3rd.

Washington Gov. Jay Inslee (D) announced the expansion of Safe Start — Washington’s Phased

Reopening plan. The expansion comes as the current Stay Home, Stay Healthy order ended midnight

Sunday. The expansion moves Washington through the phased reopening on a county-by-county basis.

With this new approach, counties will have more flexibility to demonstrate they can safely allow additional

economic activity based on targeted metrics.

Useful state data:

o The NYT is tracking which states are reopening and which are still shut down.

o These charts show cumulative coronavirus cases and deaths for metropolitan areas over time.

o Use Johns Hopkins University’s COVID-19 U.S. map as a resource for media, policymakers, and

communities to view a collection of critical public health data in one online destination and better

understand and track the COVID-19 pandemic in populations both large and small across the

country.

o NASHP has developed a COVID-19 State Action Center which serves as a state-level policy

dashboard. Governing is also keeping a running tally of coronavirus news and impacts at the

intersection of the health and economic crises in the states and localities.

o This site from the Kaiser Family Foundation provides state-level information on cases/deaths,

social distancing measures, health policy actions, and more.

o This resource from Bloomberg Law is a database of State Quarantine and Public Health Laws

related to the COVID-19 response.

o This series of maps shows how states are responding to COVID-19, and this tracker, created and

maintained by MultiState Associates, has an up-to-date list of executive orders and various travel

restrictions.

o Finally, this site offers COVID-19 projections assuming full social distancing and can be broken

down by state.

Military/Defense

More than 140 individuals training at Fort Benning, Georgia, and nearly 70 at Fort Leonard Wood, Missouri,

have tested positive for COVID-19. Both posts conducted mass tests when recruits reported having

symptoms after the end of their 14-day controlled monitoring phases, a new part of basic combat training.

Construction on the Navy’s top priority, a new nuclear-powered Columbia-class submarine, has been

delayed by several months due to COVID-19.

The DoD's Cooperative Threat Reduction Program has supported COVID-19 requests for assistance from

13 nations totaling about $2.9 million.

The House Armed Services and Senate Veterans’ Affairs committees this week will hold their first in-person

hearings since the start of the COVID-19 pandemic.

International Affairs

Italy has launched a voluntary contact tracing app after being approved by the national body that regulates

privacy. According to the Health Ministry, the app, called Immuni, "respects the Italian and European privacy

norms,” and can be downloaded for free from the Apple and Google stores.

Numbers of new reported cases in Italy have steadily decreased and some museums are starting to open.

The city of Rio de Janeiro will begin opening some nonessential businesses and activities tomorrow. The

gradual reopening will involve six phases. In the first phase, churches, car shops, and furniture stores will be

allowed to reopen. People will also be allowed to exercise on Rio’s beach-side promenade and swim in the

ocean.

Mexico has surpassed 10,000 coronavirus-related deaths.

The WHO and the Joint United Nations Programme on HIV/AIDS (UNAIDS) are warning about possible HIV-

related deaths as a result of COVID-19. The international groups say interruptions in health services and

supplies during the pandemic could lead to 500,000 additional deaths in sub-Saharan Africa from AIDS-

related illnesses, including from tuberculosis. That number would double the expected number of HIV-

related mortalities.

The Hong Kong police have stopped plans for a vigil on Thursday in memory of the people who died during

the 1989 crackdown on the Tiananmen Square protests, citing the need to enforce social-distancing rules.

Grade schools in the U.K. began a staged reopening today, welcoming back the first wave of students since

closing in late March to all but vulnerable children and children of essential workers.

Global Cases: 6,057,853 Total Deaths: 371,166

Lifestyle, Science, and Economy

The CBO wrote a letter addressed to Senate Minority Leader Chuck Schumer (D-NY) today stating that

COVID-19 is projected to reduce the U.S.’s cumulative nominal GDP by $15.7 trillion from 2020 to 2030.

The difference constitutes a 5.3 percent reduction in cumulative nominal GDP over the decade compared

with economic projections in January, before the virus spread to the U.S. The virus’s economic effects are

projected to continue to drag on productivity at least slightly into 2030.

CMS and CDC data show that nearly 26,000 nursing home residents have died from COVID-19 and more

than 60,000 have fallen ill. These figures do not account for all nursing homes across the country. According

to CMS, about 80 percent of nursing homes nationwide reported data to the CDC as is now required. The

remaining 20 percent could face fines if they don't comply.

The Metropolitan Opera said it is canceling its fall season.

The International Air Transport Association has laid out what it called a road map for restarting aviation. But

it rejected blocking off airplanes’ middle seats.

A new analysis of 172 studies, funded by the WHO found that N95 and other respirator masks are far

superior to surgical or cloth masks in protecting essential medical workers against COVID-19.

The WHO keeps a running list of COVID-19 vaccine candidates, which you can view here. STAT News also

has a resource tracking COVID-19 drugs and vaccines.

Continue to look at the NIH Office of Portfolio Analysis’s (OPA) expert-curated portfolio of COVID-19

publications and preprints. The portfolio includes peer-reviewed articles from PubMed and preprints from

medRxiv, bioRxiv, ChemRxiv, and arXiv. It is updated daily with the latest available data and enables users

to explore and analyze the rapidly growing set of advances in COVID-19 research.

Forbes is keeping a running list of all major international airline COVID-19-related change and cancellation

policies.

RetailDive tracks store reopenings in the U.S.

Helpful Articles/Media

Daily WHO Situation Report (5/30) (5/31) (6/1)

Here is last week’s COVIDView from CDC, a weekly summary and interpretation of key indicators that have

been adapted to track the COVID-19 pandemic in the U.S.

Anthony Fauci on Covid-19 reopenings, vaccines, and moving at ‘warp speed’

A third of Americans report anxiety or depression symptoms during the pandemic

Evidence for Limited Early Spread of COVID-19 Within the United States, January–February 2020

Universal and Serial Laboratory Testing for SARS-CoV-2 at a Long-Term Care Skilled Nursing Facility for

Veterans — Los Angeles, California, 2020

COVID-19 serology at population scale: SARS-CoV-2-specific antibody responses in saliva

Out-of-hospital cardiac arrest during the COVID-19 pandemic in Paris, France: a population-based,

observational study

Comparison of Clinical Characteristics of Patients with Asymptomatic vs Symptomatic Coronavirus Disease

2019 in Wuhan, China

Five Ways to Monitor the Coronavirus Outbreak in the U.S.

Antibody Tests Were Hailed As Way To End Lockdowns. Instead, They Cause Confusion.

Science vs. COVID-19: Vaccine trial wins and other hopeful findings

Research finds concerning drop in U.S. colorectal cancer screenings and surgeries (spoiler: it's because

non-urgent appointments and screenings have been put off due to COVID-19)

Contact Tracing Can Do a Lot More Than Find Coronavirus Cases

In the Pipeline: Coronavirus Vaccine Update, May 26

Fate of Global Economy Rests More Than Ever on Finding Vaccine

Study Reveals Coronavirus Immunity Only Lasts for 6 Months Casting Doubts on 'Immunity Passports’ for

Survivors

How the pandemic has changed the natural world, illustrated

Resolve to Save Lives has released, “Staying Alert: Navigating COVID-19 Risk Toward a New Normal.” In

the report, RSL recommends a four-tiered, color-coded system that grades the current state of risk from red,

“4-Very High Risk,” to green, “1-New Normal.” The system is summarized here.

Why do some COVID-19 patients infect many others, whereas most don’t spread the virus at all?

9 ways Covid-19 may forever upend the U.S. health care industry

"Looking for Clues" with CDC's CMO for COVID-19 response.

NIH Director: Defeating COVID-19 requires unprecedented action and collaboration

Watch a video replay of Clinical Trials in Public Health Emergencies: the Ebola and COVID Experiences

NIH Director's Blog: COVID-19 Brings Health Disparities Research to the Forefront

Soaring Prices, Rotting Crops: Coronavirus Triggers Global Food Crisis

From CDC's MMWR: Identification and Monitoring of International Travelers During the Initial Phase of an

Outbreak of COVID-19 — California, February 3–March 17, 2020

Virus Survivors Could Suffer Severe Health Effects for Years

A strategic approach to COVID-19 vaccine R&D, with Drs. Tony Fauci and Francis Collins as co-authors

When Coronavirus Hits Food Deserts

Watch an NIH video about COVID-19 Diagnostics: The Challenge of Rapid, High-Volume Detection of

SARS-CoV2

Effect of Convalescent Plasma Therapy on Viral Shedding and Survival in COVID-19 Patients

What Antibody Studies Can Tell You — and More Importantly, What They Can’t

Aerodynamic analysis of SARS-CoV-2 in two Wuhan hospitals (this would change the reopening of large

buildings if found to be consistent)

The Other COVID Risks: How Race, Income, ZIP Code Influence Who Lives Or Dies

The Implications of COVID-19 for Mental Health and Substance Use

COVID-19 exacerbating inequalities in the US

The characteristics of household transmission of COVID-19

Suicide Mortality and Coronavirus Disease 2019—A Perfect Storm?

The effective use of telemedicine to save lives and maintain structure in a health care system

Johns Hopkins data capture.

Other tracking data here.

Common Acronyms

Centers for Disease Control and Prevention (CDC), World Health Organization (WHO), National Institutes of Health (NIH), Personal Protective Equipment (PPE), Department of Health and Human Services (HHS), Department of Defense (DoD), Department of Homeland Security (DHS), U.S. Department of Agriculture (USDA), Central Command (CENTCOM), Department of Housing and Urban Development (HUD), Centers for Medicare and Medicaid Services (CMS), Transportation Security Administration (TSA), Department of Veterans Affairs (VA), Assistant Secretary for Preparedness and Response (ASPR), Biomedical Advanced Research and Development Authority (BARDA), U.S. Trade Representative (USTR), Supplemental Nutrition Assistance Program (SNAP), Emergency Use Authorization (EUA), Executive Order (EO)

WHO, 6.1.20

Map updated 6.1.20

(data from WHO daily situation reports)

For more information, visit CDC’s Novel Coronavirus 2019 website

David R. Adelman Principal & Director | Government Affairs