Washington Outlook by Robert L. Redding Jr.
House Leadership Introduces Fourth COVID-19 Stimulus Package
President Trump Signs Paycheck Program Flexibility Act
The U.S. House of Representatives passed the HEROES Act, what is now being touted as the fifth COVID-19 stimulus package by a vote of 208-199 largely along party lines. Previous COVID-19 economic stimulus legislation signed by the President included: • Coronavirus Preparedness and Response Supplemental Appropriations Act - March 6. • Families First Coronavirus Response Act - March 18; • Coronavirus Aid, Relief, and Economic Security (CARES) Act - March 27 • Paycheck Protection Program and Health Care Enhancement Act - April 24
A number of farmers and agribusinesses have participated in the Paycheck Protection Program (PPP) established in the third COVID-19 stimulus legislation or CARES Act. Congress has moved forward with additional reforms for the PPP program through the passage of the Paycheck Protection Program Flexibility Act. Key provisions: • Extends the forgiveness period to 24 weeks. • Replaces the 75/25 rule with at 60/40 rule. • Allows all new PPP loans to receive a 5-year maturity. Existing loans will remain at a 2-year maturity. • Allows businesses that receive forgiveness to also receive payroll tax deferment. • Ensures small businesses won’t be penalized by high unemployment benefits. • Creates a safe harbor for businesses that are required to open at only 50 percent capacity. The House and Senate Small Business Committees have held numerous hearings on the PPP and other USDA COVID19 stimulus related programs. At a June 10 Senate Small Business & Entrepreneurship Committee hearing, with U.S. Treasury Secretary Steven Mnuchin and Small Business Administration (SBA) Administrator Jovita Carranza testifying, the discussion included comments about the needs for additional economic stimulus assistance. Separately, there are coalitions in Washington seeking long-term capital economic assistance for businesses. Ahead of the fifth stimulus consideration in the Senate, Senate Small Business Committee Chairman Marco Rubio, R-Florida, is discussing moving an additional PPP reform bill. The Senate has not scheduled this legislation to date.
The HEROES Act bill expands upon current farm payment programs and provides for increased nutritional assistance. As reported last month, upon introduction, the following agricultural provisions are part of the legislation: • Expanded direct payment provisions for price losses due to the virus • Specialty crop block grants to state departments of agriculture • $50 million to support local farmers • $50 million for beginning farmers and ranchers • Assistance for food processing facilities • $20 million for mental health programs for farmers • Additional broadband funding • Additional $10 billion in SNAP funding • Additional $1.1 billion for Women Infants and Children (WIC) nutrition funding • Includes $150 million for The Emergency Food Assistance Program (TEFAP) • $3 billion for Child Nutrition Programs. The U.S. Senate is discussing their fifth COVID-19 economic stimulus legislation. It is not anticipated that the Senate will consider the HEROES Act but possibly use some of the House provisions as part of their package. The Senate will likely move their bill prior to leaving town for the August break.
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Southeastern Peanut Farmer July/August 2020
Congressional Committee Update House and Senate committees continue to meet with varying formats, including virtual hearings, limited member in-person attendance in committee rooms (speakers only) and special social distance spacing in the committee rooms. Both the House and Senate Agriculture Committees have been meeting and the House Agricultural Appropriations Subcommittee will mark-up their Fiscal Year 2021 legislation in early July. The U.S. Peanut Federation has requested peanut aflatoxin research funding for the U.S. Department of Agriculture’s Agricultural Research Service.
