House Democrats PHASE 4 Coronavirus Emergency Legislation

May 12, 2020

House Democrats just released their Phase 4 proposal entitled ‘The Heroes Act”.   Here is the bill text: https://docs.house.gov/billsthisweek/20200511/BILLS-116hr6800ih.pdf

Remember:  This is the opening round of a negotiations process that is likely to take many twists and turns.  Not a done deal!

Under “Substance Abuse and Mental Health Services Administration” there is a proposed $3 billion in funds to increase mental health support during this challenging time, to support substance abuse treatment, and to offer increased outreach, including:

  • $1.5 billion for the Substance Abuse Prevention and Treatment Block Grant;
  • $1 billion for the Community Mental Health Services Block Grant;
  • $100 million for services to homeless individuals;
  • $100 million for Project AWARE to identify students and connect them with mental health services;
  • $10 million for the National Child Traumatic Stress Network;
  • $265 million for emergency response grants to address immediate behavioral health needs as a result of COVID-19;
  • $25 million for the Suicide Lifeline and Disaster Distress Helpline; and
  • Not less $150 million for tribes, tribal organizations, urban Indian health organizations, or health service providers to tribes across a variety of programs.

This bill also includes the following additional provisions: Allow C6’s to participate in Paycheck Protection Program. Would allow not-for-profits with over 500 employees to participate .

The bill would:Expand access to the Paycheck Protection Program (PPP) for all nonprofits  -Not only would this bill lift the cap on eligibility for all 501(c) nonprofits (Division I, Small Business Provision), it also creates a dedicated 25% funding stream (set aside) reserved for nonprofits organizations as follows:

  • Half of that (12.5%) will go to charitable nonprofits with 500 or fewer employees, the current PPP standard 
  • Half (12.5%) will go to larger 501(c)(3) organizations and all other types of nonprofits, including social welfare organizations, labor unions, and chambers of commerce

Include nonprofits in the Main Street lending program

  • Division K, Title VI, would require the Main Street lending program to include nonprofits
  • The Federal Reserve would be required to create a low-cost loan option tailored to the unique needs of nonprofit organizations

In addition, the bill would appropriate funds to SAMHSA as follows:$3 billion in additional funds to increase mental health support,  to support substance abuse treatment, and to offer increased outreach, including:

  • $1.5 billion for the Substance Abuse Prevention and Treatment Block Grant;
  • $1 billion for the Community Mental Health Services Block Grant;
  • $100 million for services to homeless individuals;
  • $100 million for Project AWARE to identify students and connect them with mental health services;
  • $10 million for the National Child Traumatic Stress Network;
  • $265 million for emergency response grants to address immediate behavioral health needs as a result of COVID-19;
  • $25 million for the Suicide Lifeline and Disaster Distress Helpline; and 
  • Not less $150 million for tribes, tribal organizations, urban Indian health organizations, or health service providers to tribes across a variety of programs.

Fully fund private employer insurance premiums for laid-off or furloughed workers between March and next January.

Expand a temporary previous Medicaid enhanced FMAP bump to 14 percent. (Congress already approved a 6% bump in a previous relief package until the end of the Emergency Declaration period.)

Provide states and local governments nearly $1 trillion to replace drastic revenue shortfalls. This includes $540 billion for states, territories and tribes, and $375 billion for cities, counties and local governments.   (Note:   Today Governor Cuomo stated that NYS will need a total of $61B from the Feds.  Presumably this number is reduced by funds already received from the Federal government.)  

Other provisions:

Another round of $1,200 direct payments to Americans 

$10 billion in small business grants 

$175 billion would go to health care providers to reimburse them for coronavirus-related expenses and lost revenue, in addition to supporting testing efforts.

$100 billion in additional stimulus funding for education 

Up to $10,000 of loan forgiveness for borrowers of federal and private student loans.

Boosts funding for the Supplemental Nutrition Assistance Program (SNAP) by $10 billion 

Boosts child nutrition programs by $3 billion, among other food assistance.

The bill provides $75 billion in assistance for homeowners

$100 billion for emergency aid to help low-income renters avoid evictions and 

$750 million for people living in project-based rental assistance properties.

State departments of transportation and transit agencies would each receive about $15 billion.

Postal Service would receive $25 billion 

Census Bureau would receive $400 million to deal with pandemic-related delays to the 2020 count.