Policy Corner: July 2, 2020

House Sends Paycheck Extender Bill to President

The House of Representatives and the Senate have both passed the brief extension of the Paycheck Protection Program (PPP), which was set to expire June 30, to assist small business and nonprofits through Aug. 8, 2020. The bill has now been sent to President Trump for his signature. The PPP offers low-interest loans to small businesses and nonprofit organizations to pay staff and cover operating costs. These loans are eligible for debt forgiveness if they are used to retain workers or hire back those who have been laid off. The PPP received $670 billion in funding through the CARES Act, which passed in March, and April’s relief package provided more money for small businesses. The money had not all been spent yet, however, so Congress passed this extension bill.

Senators Introduce Bill to Encourage Personal Giving to Nonprofits

Sens. James Lankford (R-Okla.), Chris Coons (D-Del.), Mike Lee (R-Utah), Jeanne Shaheen (D-N.H.), Tim Scott (R-S.C.) and Amy Klobuchar (D-Minn.) introduced the Universal Giving Pandemic Response Act, S.4032, June 22 to expand the cap on and extend the availability of the universal charitable deduction that was included in the CARES Act. The bill would allow all Americans to deduct their charitable giving, up to about $8,000 for a married couple, in both 2019 and 2020, to encourage Americans to give more money to organizations that are delivering critical services during the current crisis. The Universal Giving Pandemic Response Act increases the $300 cap on the temporary universal charitable deduction to one-third of the standard deduction, so $4,026 for individuals and $8,052 for married couples. It also enables taxpayers to claim the deduction on their 2019 tax returns, if gifts were made before the July 15 deadline. Lawmakers are aware that nonprofits are experiencing a decline in revenue during this pandemic.

Senator Introduces Bill to Increase Federal Match for Medicaid

Sen. Robert Casey, Jr. (D-Pa.), along with 16 co-sponsors, introduced the Coronavirus Medicaid Response Act, S. 4108, yesterday. The bill would automatically connect the Medicaid Federal Medical Assistance Percentage (FMAP) to state unemployment levels, so that increased federal aid would ebb and flow with a state’s economy. This is in recognition that state budgets and Medicaid resources have been strained as people turn to Medicaid for coverage and states struggle to meet unexpected expenses and higher unemployment rates. Under current law, states rely on Congress to obtain an FMAP increase. This bill allows decisions to be made solely on the economic needs of a state.

Congress Recesses for Holiday

The House and Senate plan to be in their home districts for the Independence Day holiday. The House is scheduled to convene remotely for committee work July 6 – 17 and is scheduled for in-person votes July 20 – 31. The Senate has indicated that members will return to Washington, D.C. July 20. Have a safe holiday!

BIAA gratefully acknowledges the Centre for Neuro Skills and Avanir Pharmaceuticals for their support for legislative action.