Van Hollen, Cardin, Warner, Kaine Urge Financial Regulators to Take Measures to Protect Hospitality and Tourism Industry Workers During Coronavirus Outbreak

Statement

Today, U.S. Senator Chris Van Hollen (D-Md.) as well as Senators Ben Cardin (D-Md.), Mark Warner (D-Va.) and Tim Kaine (D-Va.) sent a letter to the financial regulators asking them to take action to mitigate the adverse impacts of the coronavirus on workers in the hospitality and tourism industry. The letter was sent to Jerome Powell, Chairman of the Federal Reserve; Joseph Otting, Comptroller of the Currency; Jelena McWilliams, Chair of the Federal Deposit Insurance Corporation; Mark McWatters, Chairman of the National Credit Union Administration; and John Ryan, President and CEO of the Conference of State Bank Supervisors.

The Senators write, "As Americans take necessary precautions to protect the well-being of their families, their workplaces and their communities from the novel coronavirus (COVID-19), the economic fallout on workers and businesses is becoming increasingly severe. Given the recent guidance and bans on travel, the millions of workers who serve in sectors like hospitality, travel, special events, and tourism are particularly hard hit. To that end, we urge you to take all actions within your power to ensure that workers do not lose their jobs or wages as a result of this public health crisis while also using your authority to maintain the safety and soundness of our banking system."

They note, "This is of particular concern to our regional economy, which relies heavily on tourism and business travel, especially during this time of year. To put this into context, the Maryland Department of Commerce estimates that in 2018 alone, visitor spending contributed $18.1 billion to Maryland's economy. Virginia's tourism industry generated $26 billion in visitor spending in 2018. And, in 2018 the District of Colombia saw tourists spend $7.8 billion."

They continue, "We appreciate your recent joint agency statement to encourage financial institutions to meet the needs of customers and members affected by the novel coronavirus/COVID-19 outbreak. We encourage you to apply similar guidance for businesses in the travel, hospitality, and tourism sectors so they can continue to pay their employees and provide them with full pay and benefits, including paid sick leave, during the ongoing coronavirus health crisis. Enacting this guidance would help employees, lenders, and businesses alike -- lenders would not have to write-off loans, businesses could continue paying their employees, and employees would continue receiving paychecks."

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