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Morning Briefing

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Tuesday, Apr 21 2020

Full Issue

Testing Dispute Throws Wrench In Small Business Deal, But Lawmakers Say They're Just 'Working On Fine Print'

Republicans and Democrats have agreed to allocate $25 billion for testing in the newest stimulus funding legislation. But Democrats want a national system put into place, while Republicans think the money should be given to the states. The deal is also set to include $75 billion in assistance for hospitals. Meanwhile, banks say the new $500 billion plan still won't be enough to meet the demand from small businesses.

The White House and Congress on Monday tried to design another giant bailout package aimed at combating the coronavirus pandemics economic and health fallout, scrambling to resolve last-minute snags over loan access and testing. We have I believe come to terms on the principles of the legislation, which is a good thing, but its always in the fine print, House Speaker Nancy Pelosi (D-Calif.) said on CNN Monday evening. And so now were down to fine print, but I feel very optimistic and hopeful that well come to a conclusion. Votes on the agreement are expected as early as Tuesday afternoon in the Senate and Thursday in the House. (Werner, 4/21)

A dispute between Democrats and the White House over how to handle coronavirus testing emerged on Monday as one of the most significant sticking points as negotiators struggled to finalize a nearly $500 billion bipartisan agreement to replenish a loan program for small businesses and provide more funding for hospitals and testing. Democrats are pushing to include a requirement in the measure, which is likely to include $25 billion for testing, that the Trump administration establish a national testing strategy, a move the president and Republicans have resisted, insisting on leaving those decisions to each state. (Cochrane, 4/20)

The deal is also set to include $75 billion in assistance for hospitals and $25 billion to expand testing for the virus across the country. All sides agreed to the $25 billion in funding, according to lawmakers and aides, but the negotiations bogged down in a dispute over how much the agreement should detail its uses. Democrats have pushed to attach the testing funds to a strategic plan that would put the federal government at the center. (Duehren, 4/20)

Democrats are also waiting to hear back on whether Republicans will agree to give states and localities more flexibility to use funds in the last rescue package to make up for lost revenue. The issue was one of the last major hangups, delaying a potential deal for more than a week as Democrats refused to relent on more aid for local governments despite unwavering Republican opposition. (Everett, Caygle and Levine, 4/20)

Testing supply shortages across the country have prompted Democrats to demand a national testing program to standardize the process across the country. They are pushing for a clear set of metrics to chart the country's progress in expanding testing, and to hold the administration accountable for any ongoing shortages, according to a Democratic source. The White House has pushed back on a national plan, arguing that testing is best left up to the states, while Republicans want the process to continue as a partnership between private industry and the government. (Khan and Siegel, 4/20)

Majority Leader Mitch McConnell, R-Ky., set up another Senate session for Tuesday in the hope that an agreement will be finished by then. Its now been four days since the Paycheck Protection Program ran out of money. Republicans have been trying to secure more funding for this critical program for a week and a half now, McConnell said. Our Democratic colleagues are still prolonging their discussions with the administration, so the Senate regretfully will not be able to pass more funding for Americans paychecks today. (Taylor and Mascaro, 4/21)

Speaker Nancy Pelosi (D-Calif.) said Monday evening that lawmakers are in the final discussions regarding the language foran interim stimulus package in response to the coronavirus outbreak. In an interview on CNN's "Anderson Cooper 360," Pelosi indicated lawmakers were nearing a final draft of the bill, which aims to refill the coffers of a popular small business loan program that was included in the $2.2 trillion stimulus package and in which Democrats had aimed to include funds for hospitals, coronavirus testing and state and local governments.(Bowden, 4/20)

Rep. Alexandria Ocasio-Cortez (D-N.Y.) said Monday that she opposes the latest version of an interim relief package to address the coronavirus pandemic, while acknowledging that the legislation hasn't been finalized yet. "We have not seen the final text of this bill. But what I can say is that if it matches up with what has been reported, I will not support this bill, personally," Ocasio-Cortez said during a call with progressive groups. (Marcos, 4/20)

Lawmakers are nearing a deal to restart an emergency small-business loan program that exhausted its funding last week but it may buy only a few days before the program screeches to a halt once again. Lenders are warning their customers they might not be able to secure loans even if Congress provides an additional $300 billion as soon as this week. Banking industry representatives say the program has a burn rate of $50 billion per day and needs closer to $1 trillion to meet demand, with hundreds of thousands of applications pending. (Warmbrodt, 4/20)

And in news on the CARES Act

Health-care companies say they are unable to use hundreds of millions of dollars of federal pandemic-relief funds already disbursed, citing uncertainty about rules governing the use of the $30 billion package. Health care is one of several industries that received immediate infusions of cash from the federal treasury. (Gold, 4/20)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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