Sens. Coons, Warren aim to hold Trump Administration accountable for COVID relief spending

WASHINGTON – Today, U.S. Senators Chris Coons (D-Del.), Elizabeth Warren (D-Mass.), and Richard Blumenthal (D-Conn.), and Co-chair of the Congressional Progressive Caucus Representative Pramila Jayapal (D-Wash.), and the Chair of the House Democracy Reform Task Force Representative John Sarbanes (D-Md.) officially introduced the Coronavirus Oversight and Recovery Ethics (CORE) Act (S. 3855), legislation that would ensure stronger oversight, accountability, and transparency in the federal government’s response to the COVID-19 crisis. Since unveiling draft legislation on May 12, 2020, wide support has grown for Congress to pass the CORE Act which now has endorsements from 57 organizations, 8 Senate original co-sponsors and 18 House co-sponsors.

“Every single penny of taxpayer money allocated by Congress for COVID-19 relief should go to families, communities and businesses in need, period,” said Senator Coons. “We have to ensure that aid is going to workers and businesses who need it most, not just the businesses with the most political connections. This important legislation will ensure that inspectors general can do their jobs and provide real accountability for the trillions in taxpayer dollars we’re investing to keep our economy afloat.”

“The CORE Act would empower independent oversight, protect whistleblowers, and stop government-sanctioned corruption and profiteering to ensure the health and safety of Americans come first,” said Senator Warren. “Congress must pass our bill in the next relief package to hold the Trump administration accountable as they hand out trillions of dollars in response to the COVID-19 crisis.”

“President Trump’s war on independent oversight and his purging of the ranks of Inspectors General is a crisis – a pernicious and ongoing attack on the building blocks of our democracy. Just days ago, Secretary Mnuchin called the recipients of taxpayer COVID-19 relief ‘proprietary information’ while refusing to disclose which giant corporations and Trump donors had accessed money meant for small businesses. Strong oversight isn’t about political punishment, it’s about making sure that the people who really need relief are the ones who receive it. Real accountability demands a watchdog, not a lapdog, to stop the waste, fraud and favoritism pervading this Administration,” said Senator Blumenthal.

“As families and small businesses struggle to stay afloat during a historic mass unemployment crisis that has seen more than 40 million workers file for unemployment, President Trump and his administration have continued to do what they do best-spread corruption, enrich giant corporations, muzzle the truth and reward their megadonor allies,” said Congresswoman Pramila Jayapal. “I’m proud that our CORE Act boldly responds to this corrupt behavior by ensuring the public knows which businesses are getting COVID-19 relief, shining a light on big-money corporate lobbying for these funds and allowing whistleblowers who see illegal, dangerous or wasteful behavior by corporations and the government to speak out without fear.”

“COVID-19 relief must go to those who need it most. American families, small businesses, health care providers and state and local governments are hurting and we must do all we can to block special interests and corporate insiders from gaming the system,” said Congressman Sarbanes. “The CORE Act will establish robust oversight and anti-corruption standards to prevent just that and ensure the Trump Administration does not waste taxpayer dollars with giveaways to their wealthy and well-connected political donors.”

Joining the CORE Act as original cosponsors in the Senate are Senators Jeff Merkley (D-Ore.), Edward J. Markey (D-Mass.), Kamala Harris (D-Calif.), Tom Udall (D-N.M.), Bernie Sanders (I-Vt.), Ron Wyden (D-Ore.), Cory Booker (D-N.J.), and Martin Heinrich (D-N.M.).

“As our country continues to address the COVID-19 pandemic, it is crucial that federal assistance is used for its intended purpose rather than line the pockets of corporate executives. Those who come forward to report misuse of funds or wrongdoing must be protected from retaliation or punishment. I am proud to lend my whistleblower protections to this broad package of reforms. Now more than ever, we must maintain the American people’s faith that taxpayer dollars are not abused. This legislation will allow us to do that,” said Senator Harris.

Joining the bill as co-sponsors in the House of Representatives are Representatives Yvette D. Clarke (D-N.Y.), Eleanor Holmes Norton (D-D.C.), Raúl M. Grijalva (D-Ariz.), Max Rose (D-N.Y.), Mark DeSaulnier (D-Calif.), David Cicilline (D-R.I.), Susan Wild (D-Pa.), Chris Pappas (D-N.H.), Joe Kennedy III (D-Mass.), Stephen F. Lynch (D-Mass.), Joe Neguse (D-Colo.), Chellie Pingree (D-Maine), Katie Porter (D-Calif.), Josh Harder (D-Calif.), Mary Gay Scanlon (D-Pa.), Kim Schrier, M.D. (D-Wash.), and Kathy Castor (D-Fla.).

The CORE Act would:

Prohibit Conflicts of Interest: The bill addresses and eliminates conflicts in the selection or hiring of contractors or advisors and the distribution of relief grants and loans, similar to the conflicts provisions in the 2008 Troubled Asset Relief Program (TARP). The bill further requires Federal ethics officials to impose revolving door restrictions on officials involved in the administration of relief; requires White House task force members who work on pandemic response to file public reports detailing their financial interests; and expands the scope of CARES Act conflict of interest prohibitions on industry assistance going to certain companies affiliated with senior government officials to include small business aid and additional senior officials. The bill provides an additional $25 million to the Office of Government Ethics to administer these rules.
Empower & Protect Inspectors General: The bill requires that inspectors general (IGs) can only be fired for good cause and requires the President to inform Congress when any IG, including an acting IG, is removed from their post. The bill further requires that IG vacancies be filled automatically by the first assistant to the last IG, and that acting IGs enjoy civil service protections, ensuring that they have some recourse if they face retaliation. Any member of the staff of an unlawfully fired IG would be allowed to file suit to challenge the firing, as would any member of the public harmed as the result of such action. The President’s decision to fire or otherwise discipline an IG or acting IG would trigger an automatic, public review by the Council of the Inspectors General on Integrity and Efficiency Integrity.
Strengthen the Congressional Oversight Commission: The bill grants the Congressional Oversight Commission, which was established in the CARES Act, with subpoena authority for testimony and documents and expands its jurisdiction to include all COVID-19 relief funding, including the Small Business Administration’s Paycheck Protection Program.
Strengthen CARES Act Executive Branch Accountability & Oversight Entities: The bill requires the Treasury Secretary to submit a weekly list of any instances in which the Special Inspector General for Pandemic Relief (SIGPR) or the Pandemic Relief Accountability Committee (PRAC)-both established in the CARES Act-believe the executive branch has unreasonably denied them information in the course of their oversight. If the Treasury Secretary omits or misrepresents instances of wrongdoing to Congress, he would be liable for perjury. If the Treasury Secretary fails to provide a required filing, the bill prevents the Secretary and any other senior political appointee in the Treasury Department from being paid.
Protect Whistleblowers: The bill establishes strong whistleblower protections for private sector workers (including essential workers) and government contractors who may witness waste, fraud, or abuse or be victims of misconduct related to Coronavirus relief. These provisions, modeled after the whistleblower protections Congress included in the 2009 Recovery Act, would protect Americans who call out wrongdoing, protect against all retaliation, and establish a safe, secure, and anonymous process for whistleblowers’ claims to be investigated by OSHA. The bill also establishes a direct channel for whistleblowers to submit complaints directly to the SIGPR, PRAC, and the Congressional Oversight Commission. The provision to protect whistleblowers was drafted with Senator Harris.
Restrict and Disclose Lobbying & Political Spending: The bill requires lobbyists to make monthly disclosures regarding all lobbying related to COVID-19 relief spending or lending. The bill also codifies the Obama Administration’s restrictions on Recovery Act lobbying activity, which would restrict all COVID-19 relief lobbying activity to public, written submissions and prohibit closed door meetings and phone calls between government officials and companies seeking relief. Monthly disclosures would include any documents provided by those companies to government officials, including White House staff. Additionally, any company that receives a direct grant or loan from Treasury, after enactment of the bill, would be prohibited from engaging in political spending or lobbying expenditures for a least a year after any loan is fully repaid. Finally, the bill bolsters the ability of the Justice Department to enforce lobbying violations under this section.
Improve Transparency & Disclosure around Industry Stabilization Funds: The bill dramatically improves transparency about where industry stabilization funds are going. It requires recipients of emergency funding or support, including contractors and grantees, to provide regular, public reporting about how that money is being used. The bill codifies the Federal Reserve Board’s announcement that it will disclose the names and amounts borrowed for each participant in their lending facilities backstopped with CARES Act money and requires recipients to provide a detailed description of how the assistance was used. The bill requires recipients to disclose compensation and workforce data, including the mean, median, and minimum wages of all non-executive employees; the number of workers before and after the receipt of assistance; and the salaries of executives, including bonuses and capital distributions. The bill further requires certain corporations that receive financial assistance to disclose whether they have been charged with violations of federal law and the nature of those alleged violations. It also ensures more transparency for Paycheck Protection Program by requiring the Small Business Administration to publicly disclose on its website, on a weekly basis, basic information about lenders and recipients, including loan amounts. Finally, the bill automatically discloses the text of lucrative contracts held by companies involved in the administration of relief.
Strengthen Enforcement: The bill allows any individual harmed by a company’s misuse of industry stabilization funds to seek recourse through the courts to ensure that harmed parties, like workers fired after a company committed to not fire anyone after receiving funds, have the ability to bring private lawsuits and seek damages against aid recipients who do not adhere to aid terms. The bill also holds senior executives of companies that violate assistance terms personally liable to taxpayers, including by having their executive compensation seized.

CORE Act endorsements include Accountable.US; African American Ministers in Action; American Family Voices; Americans for Financial Reform; Campaign for Accountability; Center for Biological Diversity; Citizens for Responsibility and Ethics in Washington (CREW); Clean Elections Texas; Coalition to Preserve, Protect & Defend; Common Cause; Daily Kos; DemCast USA; Democracy Initiative; Democracy 21; Earthworks; Ambassador (ret.) Norman Eisen, White House Special Counsel for Ethics and Government Reform. 2009-11; End Citizens United/ Let America Vote Action Fund; Equal Justice Society; Financial Accountability and Corporate; Transparency Coalition (FACT); Fix Democracy First; Free Speech for People; Global Witness Government Accountability Project; Government Information Watch; Greenpeace USA; Indivisible; International Corporate Accountability Roundtable (ICAR); League of Women Voters of the United States; Livelihoods Knowledge Exchange Network (LiKEN); Main Street Alliance; Mainers for Accountable Leadership; Mount Zion Community Outreach; MoveOn.org; National Association of Social Workers; NETWORK Lobby for Catholic Social Justice; New Mexicans for Money Out of Politics; Oil Change International; Open the Government; Oxfam America; Norman J. Ornstein; Richard W. Painter; Patriotic Millionaires; Peace Action; People for the American Way; Progressive Democrats of America; Project on Government Oversight (POGO); Public Citizen; Publish What You Pay-US; Sierra Club; SMART Elections; Stand Up America; Transparency International U.S. Office; James A. Thurber; Union of Concerned Scientists; Voices for Progress; 20/20 Vision; and 350 Humboldt.

“The CORE Act offers commonsense oversight and transparency measures solely dedicated to ensuring that our taxpayer dollars are being awarded to those in need and spent according to the intent of the law,” the 57 organizations wrote in their letter of support. “Experience has taught us that corruption and waste can diminish the impact and cost-effectiveness of emergency spending programs by the government. Experience has also taught us that oversight measures like those contained in the CORE Act can prevent that corruption and waste.”

“The gravity of our current crisis demands a responsible allocation of bailout funds. The process must be free from conflicts that favor special interests, and that requires robust oversight. CARES Act implementation to-date has been fraught, with loopholes that have allowed large companies to get cash meant for smaller businesses. We must course-correct, and ensure that taxpayer dollars help the public, workers, and protect our health. Public Citizen strongly supports the reforms proposed by Senators Warren and Blumenthal and Representatives Jayapal and Sarbanes for the next relief package to make sure that this happens,” said Lisa Gilbert, Vice President of Legislative Affairs for Public Citizen.

“The funds provided in the CARES Act are critical to an effective pandemic response, which can mean the difference between life and death, but with such massive amounts of money involved, they will be a natural target for fraud and influence. So ensuring these funds go where Congress intended is equally critical. All members of Congress should want immediate and thorough oversight into whether taxpayer funds are being spent fairly and without fraud or influence; these provisions would be a crucial step toward that needed oversight,” said Noah Bookbinder, Executive Director, Citizens for Responsibility and Ethics in Washington (CREW).

A bill summary is available here. The bill text can be viewed here.

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Sen. Coons joins bipartisan group to call for permanent expansion of telehealth following pandemic

WASHINGTON – U.S. Senators Chris Coons (D-Del.) joined Senators Brian Schatz (D-Hawaii) and Roger Wicker (R-Miss.), and a bipartisan group of 27 other senators in calling for the expansion of access to telehealth services during the COVID-19 pandemic to be made permanent. Provisions from the CONNECT for Health Act that have allowed Medicare beneficiaries in all areas of the country, and in their homes, to utilize telehealth services, as well as more types of health care providers to provide telehealth, were included in previous COVID-19 legislation but will expire following the pandemic unless congressional leaders act now to make those measures permanent.

“Americans have benefited significantly from this expansion of telehealth and have come to rely on its availability,” the senators wrote in a letter to Senator Majority Leader Mitch McConnell (R-Ky.) and Senate Minority Leader Chuck Schumer (D-N.Y.). “Congress should expand access to telehealth services on a permanent basis so that telehealth remains an option for all Medicare beneficiaries both now and after the pandemic. Doing so would assure patients that their care will not be interrupted when the pandemic ends. It would also provide certainty to health care providers that the costs to prepare for and use telehealth would be a sound long-term investment.”

In their letter, the senators highlight the growing use and benefits of telehealth during the ongoing coronavirus pandemic, as patients seek to avoid traveling to hospitals and other providers and instead receive care at home. New data shows that the number of Medicare beneficiaries using telehealth services increased by 11,718 percent in just a month and a half during the pandemic.

The bipartisan and bicameral Creating Opportunities Now for Necessary and Effective Care Technologies (CONNECT) for Health Act, led by Senator Schatz, was first introduced in 2016. The bill, which is cosponsored by 36 senators, is considered the most comprehensive telehealth legislation in Congress.

In addition to Coons, Schatz, and Wicker, the letter was also signed by U.S. Senators Ben Cardin (D-Md.), Mark Warner (D-Va.), Cindy Hyde-Smith (R-Miss.), Doug Jones (D-Ala.), Shelley Moore Capito (R-W.Va.), Angus King (I-Maine), Bill Cassidy (R-La.), Krysten Sinema (D-Ariz.), Jeanne Shaheen (D-N.H.), Susan Collins (R-Maine), Jon Tester (D-Mont.), Mike Rounds (R-S.D.), Michael Bennet (D-Colo.), Lisa Murkowski (R-Alaska), Tim Kaine (D-Va.), Tim Scott (R-S.C.), Jacky Rosen (D-Nev.), Amy Klobuchar (D-Minn.), Martha McSally (R-Ariz.), Maggie Hassan (D-N.H.), Sheldon Whitehouse (D-R.I.), Steve Daines (R-Mont.), Chris Murphy (D-Conn.), Kevin Cramer (R-N.D.), Lindsey Graham (R-S.C.), Tina Smith (D-Minn.), and Cory Gardner (R-Colo.).

The full text of the letter is available here and below.

Dear Majority Leader McConnell and Minority Leader Schumer:

As you continue your work on critical legislation to respond to the COVID-19 crisis, we write to ask that you make permanent the provisions from our bipartisan CONNECT for Health Act that were included in previous COVID-19 legislation. These provisions have resulted in an important expansion of access to telehealth services for Medicare beneficiaries during the pandemic.

We have long advocated for increasing access to telehealth because of its potential to expand access to health care, reduce costs, and improve health outcomes. Telehealth has proven to be pivotal for many patients during the current pandemic, ensuring they receive the care they need while reducing the risk of infection and the further spread of COVID-19. We have all heard from our constituents about how effective and convenient it is. Expanded Medicare coverage of telehealth services on a permanent basis—where clinically appropriate and with appropriate guardrails and beneficiary protections in place—would ensure that telehealth continues to be an option for all Medicare beneficiaries after the pandemic ends.

As you know, the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 and the Coronavirus Aid Relief and Economic Security Act included provisions from the CONNECT for Health Act to increase access to telehealth services for Medicare beneficiaries during the COVID-19 pandemic. Specifically, these laws provide the Secretary of Health and Human Services the authority to waive telehealth requirements under Section 1834(m) of the Social Security Act, allow Federally Qualified Health Centers (FQHCs) and Rural Health Clinics (RHCs) to provide distant site telehealth services, and allow for the use of telehealth to conduct the face-to-face visit required to recertify a patient’s eligibility for hospice care.

Because of these new authorities provided by Congress, Medicare has expanded coverage of telehealth services for the duration of the pandemic to include all areas of the country—as well as allowing a patient’s home to serve as an originating site for telehealth. In addition, more types of health care providers—including FQHCs and RHCs that provide primary care in rural and underserved areas—are able to furnish and bill Medicare for telehealth services. These changes have already contributed to a dramatic increase in the use of telehealth services in Medicare. Available data show that the number of Medicare beneficiaries using telehealth services during the pandemic increased 11,718 percent in just a month and a half.

Americans have benefited significantly from this expansion of telehealth and have come to rely on its availability. Congress should expand access to telehealth services on a permanent basis so that telehealth remains an option for all Medicare beneficiaries both now and after the pandemic. Doing so would assure patients that their care will not be interrupted when the pandemic ends. It would also provide certainty to health care providers that the costs to prepare for and use telehealth would be a sound long-term investment.

In addition, given the recent flexibilities provided by both Congress and the Centers for Medicare & Medicaid Services and the increased use of telehealth during the pandemic, we believe now is an important time to measure the impact of telehealth on Medicare. Specifically, the federal government should collect and analyze data on the impact of telehealth on utilization, quality, health outcomes, and spending during the COVID-19 pandemic. There is currently a scarcity of data available regarding the impact of telehealth on the Medicare program. This data would assist Congress in crafting additional policies to improve health outcomes and use resources more effectively.

Thank you for your continued leadership during the present crisis. We look forward to continuing to work together to increase access to telehealth.

Sincerely,

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Sen. Coons, Rep. Blunt Rochester introduce bipartisan FLIGHT Act to bring new programs to HBCUs like Delaware State

WILMINGTON, Del. – U.S. Senator Chris Coons (D-Del.) and U.S. Representatives Lisa Blunt Rochester (D-Del.) and Anthony Brown (D-Md.) led the introduction of legislation to provide new resources for Reserve Officers’ Training Corps (ROTC) students at Historically Black Colleges and Universities (HBCUs) and minority institutions like Delaware State University. The bill was also introduced by Senators Tom Carper (D-Del.), Thom Tillis (R-N.C.), and Tim Scott (R-S.C.) and Representative Greg Murphy, M.D. (R-N.C.). The lawmakers hope to include the FLIGHT Act, or the Fostering Leadership and Inclusion by Growing HBCU Training Act, in this year’s National Defense Authorization Act (NDAA), which funds the Department of Defense.

The FLIGHT Act aims to expand diversity in the military by increasing opportunities at our nation’s HBCUs. People of color are underrepresented in American military leadership—particularly at higher ranks and in high-investment, training-intensive specialties like aviation. As a whole, the Air Force is almost 20% African-American. But that diversity is deceptive: only 1.7% of Air Force pilots (and less than 3% of civilian pilots) are black. Similar asymmetries affect other branches of the Armed Forces.

Aspiring military aviators can significantly improve their career prospects with undergraduate pilot training, but ROTC scholarships do not cover flight training costs. This makes it more difficult for low-income students to become pilots. The FLIGHT Actaddresses this by establishing two new programs.

The goals of the FLIGHT Act include:

Lowering the barriers to ROTC participation for students at HBCUs and minority institutions. Many ROTC students at HBCUs must commute to host institutions for classes—often over long distances. This bill would provide funding and resources to mitigate these barriers, in part by encouraging partnerships between the institutions and nearby military bases.
Supplementing flight training costs for ROTC members enrolled at HBCUs. While the funds appropriated by the FLIGHT Act can be used at commercial flight schools, priority is given to students who would also receive their flight training at HBCUs. This program also includes the students participating in the Coast Guard’s College Student Pre-Commissioning Initiative program.

“Now more than ever, we are reminded how vital it is that our leaders, our guardians, and our role models reflect the diversity of America itself,” said Senator Coons. “Our servicemembers come from all walks of life, but people of color remain underrepresented at the military’s highest levels. This undermines both our military readiness and our society as a whole. Today’s military aviators will become tomorrow’s best-trained commercial pilots. Our current officers in uniform will become our policy experts, our CEOs, and often our political leaders. The FLIGHT Act is just one of many steps we must take to ensure that those who lead our country also fully represent it.”

“We must do more to support the best and brightest that want to answer the call to serve as a military pilot,” said Representative Blunt Rochester. “For some, barriers like distance from ROTC units or financial challenges stymie their efforts to serve in the military. Ultimately, we must ensure those afforded the opportunity to serve reflect the racial, ethnic, and geographic diversity of the country. That’s why I am proud to lead with my colleagues in the House and Senate in the introduction of the FLIGHT Act. The FLIGHT Act will give students at historically black colleges and universities like Delaware State University seeking to be military pilots the ability to train to be an officer and afford the flight training programs needed to fly some of the world’s most advanced aircraft. Bills like this give all Americans the chance to serve their country in the capacity we need to safeguarding our national security.”

“Our military brings together brave men and women from across this nation to serve,”said Representative Brown. “Those leading our service members should reflect the power of this diversity. Minority groups are severely underrepresented in our officer corps, and even more so among military pilots and other critical units. This bill taps into the talent present at our HBCUs and other minority institutions by reducing barriers to participation in ROTC, creating partnerships between those schools and neighboring military installations and encouraging the pursuit of flight training prior to accession to train the next generation of pilots.”

“The formation of a more perfect union is an ideal that we must constantly strive to meet,” said Senator Carper. “As we as a nation continue to take important steps in promoting equality, we cannot overstate the importance of removing the barriers to serving in a leadership role in our military. As a former ROTC student who went on to serve as a naval flight officer, I understand the positive impacts that ROTC and aviation training, in particular, have on our nation. Today, the students at Delaware State University and at HBCUs across our country have a similar opportunity, and, with the FLIGHT Act, they’ll have a greater chance to succeed and serve in leadership roles in the military and in their civilian careers, as well. I want to thank Senator Coons and Congresswoman Lisa Blunt Rochester for leading the charge and introducing this bill, and I look forward to continue working to make sure that students who are eager to take flight and serve their nation will reap the benefits.”

Delaware State University’s Michael Casson, Ph.D., Dean of the College of Business, said: “Any increased focus and resourcing for ROTC Aviation Program participants at HBCUs like Delaware State University has the potential to return significant benefits to the female and minority success rates of pilot candidates, resulting in greater diversity among military pilots.” Casson noted that cultural competency among instructors often undermines flight instruction of female and minority candidates, citing a 2018 RAND study. “The necessary cultural competency of flight instructors at HBCUs or Minority-Serving Institutions is rated significantly higher than those providing the same instruction at US Air Force bases.” He concluded: “Aviation programs at HBCUs and Minority-Serving Institutions represent a strong, recommended investment in more successfully diversifying the cadre of military pilots by successfully retaining female and minority candidates. Delaware State University’s experience over the last thirty years directly supports this conclusion, both qualitatively and quantitatively, and we strongly support the assignment of greater resources to the programs best able to use them in a positive manner.”

“The FLIGHT Act recognizes America’s diversity and pluralism as key components of her competitive edge,” said Lezli Baskerville, President & CEO of the National Association for Equal Opportunity in Higher Education. “America cannot effectively defend the Nation’s security or its citizenry without a strong, diverse, and just military. If the leadership corps in the military does not fully reflect the diversity of those on the front lines of the enlisted ranks, and those across America, our military and our Nation will not thrive, and the world will not be at peace. The FLIGHT Act will better position HBCUs to help America to be her better self.”

“Any student that has a dream to serve in the United States Armed Forces should be able to carry out that dream and have every opportunity and resource available to them to be successful regardless of where they attend college, this is especially true for our students at our nation’s HBCUs. Because minorities are underrepresented in American military leadership, ROTC serves as a gateway to that level of leadership, and HBCU students should have easier access to the opportunity to not only serve in our military but to lead. UNCF is happy to endorse the Fostering Leadership and Inclusion by Growing HBCU Training (FLIGHT) Act and urges Congress to consider this bill in the next iteration of the National Defense Authorization Act,” said Dr. Michael L. Lomax, President and CEO, UNCF (United Negro College Fund, Inc.).

The bill text is available here.

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Sen. Coons, Reps. Brown, Blunt Rochester introduce bipartisan FLIGHT Act to expand diversity in military, support HBCUs

WASHINGTON – U.S. Senators Chris Coons (D-Del.) and Thom Tillis (R-N.C.) and U.S. Representatives Anthony Brown (D-Md.), Lisa Blunt Rochester (D-Del.) and Greg Murphy, M.D. (R-N.C.) led the introduction of legislation to provide new resources for Reserve Officers’ Training Corps (ROTC) students at Historically Black Colleges and Universities (HBCUs) and minority institutions, with special emphasis on support for flight training. The bill was co-sponsored by Senators Tim Scott (R-S.C.) and Tom Carper (D-Del.). The lawmakers hope to include the FLIGHT Act, or the Fostering Leadership and Inclusion by Growing HBCU Training Act, in this year’s National Defense Authorization Act (NDAA), which funds the Department of Defense.

The goals of the FLIGHT Act include:

Lowering the barriers to ROTC participation for students at HBCUs and minority institutions. Many ROTC students at HBCUs must commute to host institutions for classes—often over long distances. This bill would provide funding and resources to mitigate these barriers, in part by encouraging partnerships between the institutions and nearby military bases.
Supplementing flight training costs for ROTC members enrolled at HBCUs. While the funds appropriated by the FLIGHT Act can be used at commercial flight schools, priority is given to students who would also receive their flight training at HBCUs. This program also includes the students participating in the Coast Guard’s College Student Pre-Commissioning Initiative program.

“I recognized that our ROTC men and women across North Carolina’s HBCU’s and minority institutions needed additional support so they could successfully enter flight training,” said Senator Tillis. “This bipartisan legislation would make it possible for many well qualified students to serve our country in this capacity. Creating opportunities for our future servicemembers is not a partisan issue and I am proud to have worked across the aisle so that those willing to serve have the opportunity for a successful career.”

“As we seek more pilots for our military, encouraging underrepresented and minority students to fly is a timely and worthy initiative,” said Representative Murphy. “Students at an HBCU like Elizabeth City State University, in eastern North Carolina in particular, would greatly benefit should this bill be successful in becoming law. I thank Senators Coons and Tillis and my House colleagues Congressman Brown and Congresswoman Blunt Rochester for their leadership on this legislation.”

“ROTC is an important program for students across America, especially our future military leaders,” said Senator Tim Scott. “Having two brothers who are veterans, I understand how important it is to improve diversity in our Armed Forces. I am proud to support this bipartisan legislation and look forward to seeing more leaders who look like the country they serve.”

The bill text is available here.

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Coons, Romney seek more information from Treasury on jobs and labor markets

WASHINGTON — As Congress considers additional relief legislation, U.S. Senators Chris Coons (D-Del.) and Mitt Romney (R-Utah) today sought answers from the Secretary of the Treasury to better understand the economic impact of the Paycheck Protection Program (PPP). An accurate picture of the job growth resulting from PPP hiring incentives—rather than market conditions—will help Congress craft legislation better tailored to helping American workers.

“While an unemployment rate of 13.3% and a labor-force participation rate of 60.8% mean the nation still has a long road to recovery, we hope the additional 2.5 million jobs, as estimated by the Bureau of Labor Statistics (BLS), is an indicator that the labor market may have turned a corner,” the senators wrote. “Understanding exactly how and why the economy added these several million new jobs will be key to helping Congress understand how to best craft additional relief legislation.”

“The Paycheck Protection Program (PPP), which originally provided two months of payroll costs, is currently covering the wages for tens of millions of workers who are therefore counted as “employed,” but we have no idea how many of them would be unemployed in the absence of that support,” the senators continued. “As Congress debates future recovery options, it is crucial lawmakers understand the decisions made by employees and employers alike, including how they responded to the incentives created by the CARES Act, and what Congress should expect as its provisions expire.”

The full text of the letter can be found below.

Dear Secretary Mnuchin:

Earlier this week, Americans were given the tremendous news that, although analysts predicted May would see 7.5 million jobs lost, the country instead saw 2.5 million jobs gained. While an unemployment rate of 13.3% and a labor-force participation rate of 60.8% mean the nation still has a long road to recovery, we hope the additional 2.5 million jobs, as estimated by the Bureau of Labor Statistics (BLS), is an indicator that the labor market may have turned a corner. Understanding exactly how and why the economy added these several million new jobs will be key to helping Congress understand how to best craft additional relief legislation.

When looked at broadly, lockdown orders, supply constraints, and a massive demand shock created wide job losses during the last three months. However, it is less evident how the labor market may have turned the corner in May, particularly with states and localities reopening at different paces. The Paycheck Protection Program (PPP), which originally provided two months of payroll costs, is currently covering the wages for tens of millions of workers who are therefore counted as “employed,” but we have no idea how many of them would be unemployed in the absence of that support.

As Congress debates future recovery options, it is crucial lawmakers understand the decisions made by employees and employers alike, including how they responded to the incentives created by the CARES Act, and what Congress should expect as its provisions expire. An accurate understanding allows further legislation to be better tailored to successful policies for America’s workers.

Please provide answers to the following questions, which we believe will be central to the debate over any possible Phase 4 legislation. Note, for purposes of these questions, “unemployed” refers to people who are not employed, whether counted in or out of the labor force.

Reconnection to the Labor Force

How many workers were unemployed in April, but employed in May?
Of these “reemployed” workers, how many had been employed as of February?
Of these “reemployed” workers, how many returned to the firm that employed them in February?
Effect of the Payroll Protection Program on the Labor Market

How many of the 137 million Americans counted as “employed” in May worked for firms that received a PPP loan?
How many of these workers were on furlough or otherwise not actively working, but kept on payroll by PPP recipients?
How many firms receiving PPP loans hired new workers in May, and how many total workers did they hire?

Effect of Unemployment Insurance on the Labor Market

How many “reemployed” workers received Unemployment Insurance in April?
Of these workers reemployed from UI, how many earned a weekly wage in May lower than the weekly UI payments they received in April?
How many workers have received UI who otherwise would not have been eligible for benefits without the UI provisions enacted in the CARES Act?

Status of Small Business

How many workers were unemployed in April and then employed by small businesses (fewer than 500 employees) in May? Of these, how many were hired by PPP recipients?
How many workers were unemployed in May, but were employed by small businesses in April? Of these, how many had worked for PPP recipients?

Finally, for any answers you are unable to provide due to a lack of access to or unreliability of data sources, please identify actions that would need to be taken in order to make such data available for analysis.

Thank you in advance for your cooperation, and the dedicated service of your department, working to achieve an economic recovery for all Americans.

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[AUDIO] Sen. Coons on WDEL: ‘Allow the smallest businesses that have the biggest loss in revenue to apply for a second round of PPP loans’

WASHINGTON — Today, U.S. Senator Chris Coons (D-Del.), member of the Small Business Committee, joined WDEL’s Peter MacArthur to discuss his efforts to get more COVID-19 relief to Delaware small businesses. Senator Coons highlighted his proposed legislation to specifically direct aid to small businesses and nonprofits severely affected by the pandemic with Senators Ben Cardin (D-Md.) and Jeanne Shaheen (D-N.H.). Senator Coons also discussed yesterday’soversight hearing on the Paycheck Protection Program (PPP) with Steven Mnuchin, Secretary of the Treasury, and Jovita Carranza, Administrator of the Small Business Administration (SBA).

“There’s more than $100 billion in unspent PPP funds, so I’m introducing a bill with Senators Cardin and Shaheen that would allow the smallest businesses that have the biggest loss in revenue to apply for a second round of PPP loans,” said Senator Coons. “My concern is that just as our economy is starting to reopen, some of the businesses – particularly restaurants and hotels and others hardest hit by this pandemic – will be running out of these critical loans that become grants if they spend them on rehiring people, so the Prioritized Paycheck Protection Program (P4) would allow small companies that have taken a really hard hit to apply for, get, and use a second PPP loan.”

The upcoming legislation, referred to as the P4 Act, would:

provide eligible small businesses with as much as 250 percent of monthly payroll costs worth up to $2 million; and
allow P4 recipients to apply for forgiveness of their loans 8 weeks after the loans have been disbursed.

Full audio is available here. A transcript is provided below.

Q: Well as more businesses begin to reopen in Delaware, some need more help than others. Senator Chris Coons joining us this morning to talk about some legislation, Senator, that you have on the table to help those businesses that have been hardest hit by COVID-19.

Sen. Coons: Yesterday, we had an oversight hearing with the Small Business Administration about the Paycheck Protection Program (PPP). It’s already distributed hundreds of billions of dollars to small companies and nonprofits all over the country and in Delaware. But in many cases, they’re running out of those funds, and we already have appropriated funds that haven’t yet been spent. There’s more than $100 billion in unspent PPP funds, so I’m introducing a bill with Senators Cardin and Shaheen that would allow the smallest businesses that have the biggest loss in revenue to apply for a second round of PPP loans. My concern is that just as our economy is starting to reopen, some of the businesses – particularly restaurants and hotels and others hardest hit by this pandemic – will be running out of these critical loans that become grants if they spend them on rehiring people, so the Prioritized Paycheck Protection Program would allow small companies that have taken a really hard hit to apply for, get, and use a second PPP loan.

Q: Well, Senator, I think what a lot of people would characterize as a lack of guidance during that first round really left a mark; especially in small states like Delaware, in rural areas and such. Maybe this corrects some of that?

Sen. Coons: Well, Peter, I’ve been actively, aggressively engaged with the Small Business Administration and the Treasury Department on guidance. They did push out the door a record amount of loans in a small amount of time, but the guidance wasn’t as clear as it needed to be. To a lot of small businesses in Delaware I’ve heard from, it seemed to them that the rules kept shifting; that it wasn’t clear. We recently extended the repayment period for these loans. And one of the things I talked to the Secretary Mnuchin about yesterday — as did other members of the committee — was making the application to finalize the loan to grant process clearer, cleaner, swifter.

Q: You know what’s interesting is talking with one of the CBS News business analysts that we do on a weekly basis earlier this week, Senator, that the PPP is really in parts, responsible for some of the job gains we saw. A problem there is, this is money that’s going to run out, and the other problem is, could it slow down the fact that there was that job growth, further talk and progress on this second round of aid?

Sen. Coons: Well, Peter, one of the things I’ve really been surprised by this week here in Washington is the lack of a sense of urgency on the part of some of my colleagues. Majority Leader McConnell doesn’t seem interested at all in negotiating the next round of loans to keep businesses going; to keep businesses rehiring. Part of what’s made this PPP program, Peter, so important was that it’s a loan that can become a grant if you spend three-quarters of it on payroll; on re-hiring people. As I said, it’s starting to run out in terms of the initial period, so anyone who’s listening who works for a nonprofit or who has a small business, we have extended the period of that first round of PPP loans to grants. There is a longer period to use them; a much longer period to repay them, if they don’t become a grant, and we are working hard on making that guidance clearer because that is what’s putting a floor behind what growth there is underneath what growth there is in our economy.

Q: Let’s talk a couple of minutes about police reforms. Let me ask you this; when you hear the terminology, “defund the police,” what does that mean to you? Are there elements of that that need to be addressed, do you think? Or what path do we take moving forward?

Sen. Coons: Well, Peter, I listened to a group of advocates and activists from Delaware on this question yesterday. I don’t support closing police departments, eliminating police departments. And I don’t think responsible folks are advocating for that. What they’re really talking about is increasing the funding for critically-needed community services. For example, we rely too much on police and prisons to take care of mental health challenges, behavioral health challenges, to work with our homeless population. There are better ways we could spend money on social work, on engagement, on housing. Reduce the burden on police and policing, and provide appropriate alternative means of support for people in our community who are suffering from mental illness, who have behavioral health challenges or addiction, or who are out of housing at the moment. All of those are challenges that at the moment fall fairly heavily on police departments and that’s in large part because we don’t invest enough in human services and social services.

Q: What about direct dialogue on race with police officers within their departments, and backing on that financially somehow? Does that make sense?

Sen. Coons: I’m sorry. Could you repeat your question?

Q: Should there be more dialogue within departments, from leadership on down, about issues of race within police departments?

Sen. Coons: Yes, there should. Part of the bill that I’ve co-sponsored would require training in every department to make sure that folks are having conversations within the department and with the community. One of the things that I think made a difference in the New Castle County police when I was in county government was engagement with different faith community, engagement with different activists and community leaders. All departments need to be doing that sort of active, proactive, positive outreach.

Q: Very good. Senator Chris Coons joins us here on Delaware Morning News. We’ll talk again soon, Senator. Thanks very much.

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Sens. Coons, Cardin, Shaheen announce legislation to get capital to small businesses hardest hit by COVID-19

WASHINGTON, D.C. – U.S. Senators Chris Coons (D-Del.), Ben Cardin (D-Md.), and Jeanne Shaheen (D-N.H.), all members of the Senate Committee on Small Business & Entrepreneurship, today announced their intention to introduce the Prioritized Paycheck Protection Program (P4) Act. The bill authorizes new lending under the Paycheck Protection Program (PPP) to small businesses with 100 employees or less, including sole proprietorships and self-employed individuals. Eligible businesses must have already expended an initial PPP loan, or be on pace to exhaust the funding, and must demonstrate a revenue loss of 50 percent or more due to the COVID-19 pandemic.

“In conversations with small businesses up and down the state of Delaware, it’s become clear that many employers in vital sectors need more federal aid through the Paycheck Protection Program. Even as closures are ending, countless Delaware businesses are struggling to survive this crisis,” said Senator Coons. “That’s why I’m proud to work with Senators Cardin and Shaheen on this legislation that will provide substantially more aid to the smallest, most vulnerable businesses that have been hardest hit by this pandemic. Only by aggressively targeting aid can we save our small businesses, the jobs they provide, and the Main Streets that make our communities proud.”

“Many small businesses will continue to struggle in the weeks and months to come,” Ranking Member Cardin said. “Congress must once again act urgently to support our most vulnerable small businesses through this crisis, so our economy can recover as quickly as possible after the pandemic. Every business we prevent from failing now, is a business that will be in a position to create jobs during the recovery.”

“Even as our economy begins to recover, small businesses have a long way to go before they’re back on their feet,” said Senator Shaheen. “A second installment of PPP funding is the lifeline many businesses need to get them to the other side of this crisis while keeping employees on payroll. This legislation prioritizes smaller businesses, particularly those in the restaurant and hospitality industries, that have been hit especially hard in recent months. Every effort must be made to make sure federal relief reaches small businesses that need help most and this legislation is a vital next step towards that goal.”

The bill follows a “flash report” released by the Small Business Administration (SBA) Inspector General last month, which found that SBA’s failure to issue guidance to prioritize underserved and rural markets in PPP “did not fully align” with the Congressional intent of the CARES Act.

To ensure that underserved and hardest-hit businesses can access P4 loans, publicly traded companies are ineligible for the loans; hospitality and lodging businesses with multiple locations are limited to an aggregate loan amount of $2 million; and the bill would reserve the lesser of $25 billion or 20 percent of PPP funds for employers with 10 or fewer employees, as well as small businesses in underserved and rural communities. The bill also directs SBA to issue guidance to give priority to businesses with 10 employees or fewer in the processing and disbursement of P4 loans, and requires SBA to request demographic information of P4 loan recipients.

Additionally, the P4 Act would:

· provide eligible small businesses with as much as 250 percent of monthly payroll costs worth up to $2 million;

· prevent affiliated businesses with separate locations from receiving more than $2 million in aggregate P4 loans; and

· allow P4 recipients to apply for forgiveness of their loans 8 weeks after the loans have been disbursed.

A one-pager on the bill is available here.

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Sens. Carper, Coons join bipartisan push for community health center funding

WASHINGTON — U.S. Senators Tom Carper and Chris Coons (both D-Del.) joined Senators Debbie Stabenow (D-Mich.), Roger Wicker (R-Miss.) and 37 of their colleagues to urge Congress to support community health centers that provide Americans with critical health care, including testing and treatment of COVID-19. These centers, such as Westside Family Healthcare, La Red Health Center, and Henrietta Johnson Medical Center, are essential providers in Delaware and across the country.

“We write to express our support for additional emergency funding for community health centers in the next COVID-19 relief package. Community health centers are vital to our response to the coronavirus pandemic and need appropriate funding to continue their front-line health care work,” wrote the senators. “Community health centers provide affordable care to more than 29 million patients, including 385,000 veterans and 8.7 million children nationwide. These centers play a critical role in responding to the pandemic, offering coronavirus testing, primary care, dental care, behavioral health care, and other services to our nation’s most vulnerable patients.”

In the letter, the senators asked Senator Roy Blunt (R-Mo.) and Senator Patty Murray (D-Wash.), Chairman and Ranking Member of the Senate Appropriations Committee Subcommittee on Labor-HHS-Education, to support additional emergency funding for community health centers across the country. Over 2,000 centers have already had to close their doors, and many more remain concerned about how long they will be able to stay open.

The full text of the letter can be here and below.

Dear Chairman Blunt and Ranking Member Murray:

We write to express our support for additional emergency funding for community health centers in the next COVID-19 relief package. Community health centers are vital to our response to the coronavirus pandemic and need appropriate funding to continue their front-line health care work.

Community health centers provide affordable care to more than 29 million patients, including 385,000 veterans and 8.7 million children nationwide. These centers play a critical role in responding to the pandemic, offering coronavirus testing, primary care, dental care, behavioral health care, and other services to our nation’s most vulnerable patients. This care helps keep individuals out of emergency rooms, where beds are currently in particularly high need. It also helps manage chronic conditions that may exacerbate the symptoms of COVID-19.

Over the next six months, community health centers will see 34 million fewer appointments as Americans cancel primary and preventive care appointments or delay non-essential care. Health centers are anticipating $7.6 billion in lost revenue and 105,000 lost jobs. Over 2,000 centers have already had to close their doors and many more remain concerned about how long they will be able to stay open.

We appreciate the additional $2 billion in emergency funding provided to community health centers in recent COVID-19 response and relief packages, including $600 million dedicated to testing. However, despite this funding, health centers are still worried about how to keep their doors open to serve their patients. These valuable providers will continue to lose more revenue as the pandemic continues. Additional funding is critical for these centers to continue providing quality, affordable health care and front-line response efforts.

We look forward to working with you to reach a bipartisan agreement to enact legislation and ensure community health centers can continue to provide high quality and affordable care to those in need.

Sincerely,

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Sen. Coons backs historic policing reform legislation

WASHINGTON — U.S. Senator Chris Coons (D-Del.), a member of the Senate Judiciary Committee, announced that he is an original co-sponsor of the Justice in Policing Act of 2020, legislation introduced today by Senators Cory Booker (D-N.J.) and Kamala Harris (D-Calif.) and members of the Congressional Black Caucus in the House of Representatives.

“Two weeks ago, George Floyd was brutally killed by police in Minneapolis, joining a long line of African Americans who have been unjustly killed, too often at the hands of law enforcement. Thousands of Delawareans of all backgrounds and ages have taken part in protests from Wilmington to Dover, Middletown to Seaford, and millions have protested nationwide demanding justice and real change in our society. We must listen to those voices and take action – that’s why I’m joining this legislation as an original co-sponsor today. Addressing the long-standing racial injustices in our country will take more than one bill, and we must address much more than just policing, but I believe the Justice in Policing Act of 2020 is an important start to the change I hear Delawareans demanding in historic numbers.

“Policing is mainly a local issue, and much of the change we need to see will come at the state and local level. But there are areas where we can take federal action. This bill includes measures I have already cosponsored to make lynching a federal hate crime and end racial profiling. Additionally, it will enhance the ability of prosecutors to bring federal charges against police officers who criminally violate Americans’ constitutional rights and help the Department of Justice’s Civil Rights Division investigate systematic police misconduct. The bill will incentivize states to create independent investigative structures for police-involved deaths, ensure decertified officers are not able to change jurisdictions without disclosure of prior misconduct, mandate training on racial bias, and more.

“The legislative process on making policing reforms is just starting in the Senate. The bill introduced this morning is an imperfect bill that has a number of provisions that I will work on with the sponsors to focus and improve. Addressing injustice will take sustained effort at every level of government and society, and in the weeks ahead I will be working on legislation to address job opportunities, housing, youth programs, and access to opportunity. We still have work to do to refine this bill and pass it into law, but the Justice in Policing Act of 2020 is an important signal that we in Congress intend to begin this difficult work now, and it can begin to create the kind of systematic change we need.

“Today’s introduction is a vital first step to ensuring that the principle of equal justice under the law is realized for all, but it is just the beginning of the legislative process. I want to continue to hear from a wide range of Delawareans on how they want reform – across many areas – to move forward. We should also engage the many members of law enforcement who are working to bring positive change to their agencies and communities. As the co-chair of the Senate Law Enforcement Caucus, I recognize how difficult law enforcement officers’ responsibilities are. I also know that the vast majority of our law enforcement officers are committed to equal justice for all Americans. I’ve spoken with many police officers and law enforcement officials who are eager to improve relationships and build trust with the communities they serve while improving accountability for their departments. This bill will be stronger and more likely to pass if we can garner support from a wide range of Americans, including those in law enforcement. I look forward to hearing from Delawareans in the days and weeks ahead to ensure we advance legislation that can meet this moment and make a lasting difference.”

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Carper, Coons, Blunt Rochester applaud passage of bill to give small businesses using PPP loans more flexibility

WASHINGTON – Today, U.S. Senators Tom Carper and Chris Coons, along with Congresswoman Lisa Blunt Rochester (all D-Del.), applauded the passage of bipartisan legislation that would give businesses more flexibility when it comes to the Paycheck Protection Program (PPP). This increased flexibility will, among other things, help Delaware businesses and nonprofits keep employees on payroll during the coronavirus pandemic. The legislation, backed by Delaware’s Congressional Delegation, passed the U.S. Senate unanimously on Wednesday evening following passage in the U.S. House of Representatives last week, and was signed into law today.

Specifically, this legislation would extend the period during which borrowers must spend PPP funds in order to qualify for full forgiveness from 8 to 24 weeks. It would also push back the rehire date from June 30 to December 31, 2020, giving small businesses increased flexibility to rehire and reopen in accordance with state and local regulations. Additionally, the legislation shifts the caps on payroll and operating expenses, allowing borrowers to spend up to 40 percent of the loan funds on non-payroll operating expenses, including the purchase of Personal Protective Equipment (PPE), and still receive full forgiveness.

“Our small businesses drive our economy and employ millions in our region. If we want to get our economy back up and running in a safe way, we need to make sure we are really addressing their needs in a timely way,” said Senator Carper. “In conversations with small business owners up and down the state since the PPP loans were first made available, I’ve heard repeatedly that they need more flexibility in this program, especially as this pandemic continues. I’m glad we could come together, thanks to the leadership of those on the Committee on Small Business and Entrepreneurship like Senator Coons, to pass this common sense legislation that will help keep Delawareans employed and the lights on for small businesses as we continue to recover and rebuild in the wake of this unprecedented pandemic.”

“I’ve been talking every day with small business owners up and down the state of Delaware throughout this crisis, and I’ve consistently heard that the PPP program needed to be reformed and made more flexible so that it could help different businesses with different costs, staffing issues, and more,” said Senator Coons. “This isn’t about politics, this is about helping Delaware businesses get the resources they need to get through this crisis, and I’m proud that every single member of the Senate voted to support it.”

“As our country has embarked upon our economic recovery from COVID-19, one of the most important and consequential programs in our recovery effort has been the PPP program. While the program was successful in many ways, we heard from the outset that we were not getting enough money to under or unbanked businesses and that the smallest businesses, which constitute the backbone of our economy, needed additional flexibility when it came to the terms of the PPP loans,” said Rep. Blunt Rochester. “We know that we still have much more work to do, but I’m pleased that we’ve taken a meaningful step in ensuring those businesses have the flexibility they need.”

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[AUDIO] Sen. Coons on WDEL: ‘Allow the smallest businesses that have the biggest loss in revenue to apply for a second round of PPP loans’

Sens. Coons, Cardin, Shaheen announce legislation to get capital to small businesses hardest hit by COVID-19

Sens. Carper, Coons join bipartisan push for community health center funding

Sen. Coons backs historic policing reform legislation

Carper, Coons, Blunt Rochester applaud passage of bill to give small businesses using PPP loans more flexibility