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Leading Contenders for Next Aid Package?Tuesday April 21, 2020 Courtesy of WSW, Washington, DC?As soon as the ink dries on this COVID aid package, work will begin on the next.? Some of the issues discussed include infrastructure spending, tax incentives for the restaurant and entertainment industries, and payroll tax cuts.?In addition, a bipartisan duo of Senators from states hit particularly hard by the pandemic, Senator Bob Menendez (D-NJ) and Senator Bill Cassidy (R-LA), are leading the charge on behalf of states and localities, asking for $500 billion in aid to prop up budgets cratering from increased expenses and decreased tax revenues.? States, counties, and localities are already sounding the alarm that layoffs and service reductions are being planned for the very near-term.?The "Big 7" state and local government associations urged "robust, flexible" federal relief in the next COVID-19 funding package. There is ongoing concern within the Administration and among some in Congress that if aid to states and municipalities is "too generous," those locations will be less motivated to reopen their economies quickly, weakening or stalling the overall effort.?Additional pending requests for aid from key sectors of the economy include:Increased pay and support for frontline responders (known as the "Heroes Fund").Support for Institutions of Higher Education (IHEs), including direct institutional and student aid, funding to support IHEs' research enterprises, IHE tax relief and institutional loans, and student loan forgiveness. Without assistance in these key areas, many IHEs are voicing doubts about their ability to reopen in the fall. Adjusting unemployment insurance (UI) provisions to ensure employees won't make more money from unemployment than they will make if they return to work. Restaurateurs?in particular highlighted their frustration.Additional direct cash contributions to individuals and families. For example, Reps. Tim Ryan (D-OH) and Ro Khanna (D-CA) proposed legislation last week to give $2,000 a month to Americans over the age of 16 who make less than $130,000/year.Fixing Implementation ChallengesUnsurprisingly, there have also been significant challenges in the rollout of massive new federal aid programs.? To name a few:Restrictive timelines and insufficient guidance on the requirements to secure loan forgiveness for Paycheck Protection Program (PPP) loans, and confusion on whether IHEs can exempt student workers for purposes of meeting the 500 employee threshold.? Confusing and inconsistent guidance on the use of Higher Education Relief Funds, specifically regarding the direct emergency assistance to students funding that has been released, including whether DACA students are eligible.Unclear eligibility for the Main Street Lending Program, including whether nonprofit private and public institutions of higher education? can participate, and whether those IHEs can exempt student workers for purposes of the 10,000 employee threshold.Frustration from municipalities and counties with fewer than 500,000 residents who do not qualify for direct payments under the CARES Act.More Things You Should KnowCongress has?made?a historic move to "remote" voting and Committee proceedingsThe President has?suspended?all immigration to the U.S. by Executive OrderAs some states, including Georgia, South Carolina, and Tennessee, move to partial reopening, Washington's focus on issues of testing and health surveillance will intensify; Congress in particular will be keeping a close eye on employer actions to ensure they are protecting employees and their customers ................
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