Middle Class Health Benefits Tax Repeal Act of 2019

Floor Speech

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Mr. THOMPSON of California. Mr. Speaker, this bill represents a critical compromise between both parties whose Members came together in light of the Corona virus pandemic. It is not perfect, but it is an important step forward. I have said since the start we had to help workers, small businesses, and the health care providers who have been hit and intense negotiations have produced a bill that prioritizes the needs of our health system and of working families ahead of big corporations.

I have spent the last several days reviewing the bill and discussing the fine points with leaders in our District who agree this is a good start--this bill will help our communities and get them the assistance they need right away. It gives hospitals a massive infusion of support, including medical supplies, such as personal protective equipment. It helps people who are struggling financially with rebate checks and a strong emergency unemployment program. And it boosts our small businesses with grants and emergency loans so they can keep going despite the economic toll this virus is taking on our communities.

I am proud to support this bill because it puts workers and their families first by providing direct, individual assistance to households. It includes rebates up to $2,400 for families, expands unemployment benefits by providing up to four months of an additional $600 per week of unemployment insurance, waives the 10 percent early withdrawal penalty on retirement account distributions for taxpayers facing virus-related challenges, protects the right to collective bargain, and ensures small businesses have the resources they need through the Small Business Administration.

Moreover, this legislation provides a massive and essential boost to our overall health care system. It provides $100 billion for hospitals and other facilities to cover the costs of the COVID-19 outbreak, $16 billion for the acquisition of personal protective equipment for medical personnel, and over $50 billion for state, local and tribal health departments.

I am particularly pleased that the bill expanded on legislation of mine signed into law earlier this month, expanding the use of telehealth and telemedicine for Medicare and Medicaid patients. This package not only broadened the scope of telehealth for these patients, but also adopted my legislation to ensure that beneficiaries can access telehealth services at Rural Health Clinics and Federally Qualified Health Centers.

I would also note the importance of language in the bill staving off scheduled cuts to Disproportionate Share Hospitals (DSH) through December 1, 2020. I am hopeful that Congress can come together to permanently address these cuts, but applaud legislators for ensuring that these harmful cuts do not take place at precisely the worst possible time.

As Chairman of the House Subcommittee on Select Revenue Measures, I am pleased the legislation establishes a refundable Employee Retention Tax Credit, to be taken against federal payroll taxes, for struggling businesses that retain and pay their workers, rather than lay them off. The amount of the credit is equal to 50 percent of an employee's qualified wages, up to a $10,000 per employee cap. Further, the bill includes modifications of the limitation on losses for taxpayers other than corporations, like sole proprietors; modifications of the credit for prior year minimum tax liability of corporations; modifications of the limitation on business interest; a technical amendment to allow businesses to write off costs associated with improving their facilities; and a temporary exception from the excise tax for alcohol used to produce hand sanitizer.

The bill provides $350 billion in loan forgiveness grants to small businesses and nonprofits to maintain existing workforce and help pay for other expenses like rent, mortgage, and utilities; $10 billion for SBA emergency grants of up to $10,000 to provide immediate relief for small business operating costs; and $17 billion for SBA to cover six months' worth of payments for small businesses with existing SBA loans.

In addition, the bill establishes a new guaranteed loan program at SBA for small businesses to cover payroll during the immediate crisis called the Paycheck Protection Program that would support $349 billion in 100 percent guaranteed, low interest, no fee loans of up to $10 million with repayment deferred for at least six months; and forgive up to 100 percent of the loan if the borrower has retained the same number of employees as when they received the loan.

Our law enforcement and first responders are on the front line of this crisis and I am proud that this bill provides $850 million for the Byrne-Justice Assistance Grant Program (Byrne-JAG). Byrne-JAG is the most flexible federal law enforcement grant program and will allow local police departments and jails to meet local needs, including the purchase of personal protective equipment and other needed medical items to support officers on the front lines.

For states and local governments this bill provides $1 billion for the Community Development Block Grant (CDBG) program to enable nearly 1,240 states, counties, and cities to rapidly respond to COVID-19 and the economic and housing impacts caused by it. This includes the expansion of community health facilities, child care centers, food banks, and senior services. To ensure resources are quickly deployed and meet the unique response needs to COVID-19, the bill eliminates the cap on the amount of funds a grantee can spend on public services, removes the requirement to hold in-person public hearings to comply with national and local social gathering requirements, and allows grantees to be reimbursed for COVID-19 response activities regardless of the date the costs were incurred.

I am continuously impressed with Americans' generosity during a crisis. However, during this particular emergency, we are asked to stay away from people. That brings a significant financial strain on many industries, especially those who supply/stock food. With many Americans losing their jobs and an inability to buy groceries, an increase to the Emergency Food Assistance Program (TEFAP) is a necessity to keep food banks fully stocked and supply Americans with nutritious meals. We must also ensure that our Supplemental Nutrition Assistance Program can provide food for our most vulnerable populations. While $15.5 billion was allocated to SNAP, we could use more.

The last thing students, especially Pell Grant recipients, need to worry about is how to pay for their student loans or if they can keep their grant. I am grateful this Act defers student loan payments for six months and allows students to keep their entitlements. The $30.750 billion that is allocated to the state's Education Stabilization Fund will ensure America's learners are still able to operate remotely and can continue to develop to their full potential, regardless of their learning location.

To alleviate the anticipated strain on our healthcare system, the bill provides funds for the Department of Defense to contribute its unique capabilities to the whole-of-government response to the pandemic. These funds will support the deployment of the USNS Mercy hospital ship to Los Angeles and the USNS Comfort to New York, deployments of the National Guard to support state and local response efforts, and the expansion of military hospitals and expeditionary hospitals. To help bolster the supply chains for medical equipment, the bill provides $1 billion for the Defense Production Act to help industry ramp up production of personal protective equipment, ventilators, and other urgently needed medical supplies for federal, state, and local health agencies.

The bill protects our veterans by ensuring the Department of Veterans Affairs (VA) has the equipment, tests, and services necessary to support a surge in demand and provide the additional care they need at facilities nationwide. In particular, I am pleased the bill supports the needs of veterans at an increased risk of infection. Funding is included for the Health Care for Homeless Veterans Program and for keeping veterans within VA-run nursing homes and community living centers safe from the coronavirus.

This is not our last legislative effort to help our Nation and the people we represent. I have already begun conversations with our local leaders and with my colleagues in Congress about what will be in our next relief package. We will get through this together.

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