Providing for Consideration of H.R. Restaurant Revitalization Fund Replenishment Act of and for Other Purposes
Floor Speech
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Mr. MORELLE. Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 1033 and ask for its immediate consideration.
The Clerk read the resolution, as follows: H. Res. 1033
Resolved, That upon adoption of this resolution it shall be in order to consider in the House the bill (H.R. 3807) to amend the American Rescue Plan Act of 2021 to increase appropriations to the Restaurant Revitalization Fund, and for other purposes. All points of order against consideration of the bill are waived. An amendment in the nature of a substitute consisting of the text of Rules Committee Print 117-39, modified by the amendment printed in the report of the Committee on Rules accompanying this resolution, shall be considered as adopted. The bill, as amended, shall be considered as read. All points of order against provisions in the bill, as amended, are waived. The previous question shall be considered as ordered on the bill, as amended, and on any further amendment thereto, to final passage without intervening motion except: (1) one hour of debate equally divided and controlled by the chair and ranking minority member of the Committee on Small Business or their respective designees; and (2) one motion to recommit.
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Mr. MORELLE. Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentlewoman from Minnesota (Mrs. Fischbach), my colleague and friend, pending which I yield myself such time as I may consume. During consideration of this resolution, all time yielded is for the purpose of debate only. General Leave
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Mr. MORELLE. Mr. Speaker, this morning the Rules Committee met and reported a rule, House Resolution 1033, providing for consideration of H.R. 3807, the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 under a closed rule.
The rule provides 1 hour of debate equally divided and controlled by the chair and ranking minority member of the Committee on Small Business, self-executes a manager's amendment from Chairwoman Velazquez, and provides one motion to recommit.
Mr. Speaker, I rise today to urge my colleagues to adopt the rule and support critical funding for restaurants and other small businesses across our Nation.
As we all know, small businesses--especially restaurants--are the backbone of our local economy. Not only for the revenue they bring in, but for the many local workers they employ; families that need their paycheck now more than ever. But sadly, restaurants have been some of the hardest-hit businesses throughout the COVID-19 crisis, and many have struggled to keep their doors open.
Many of us have made a promise to support workers, families, and businesses in their time of need, and that is why we established the Restaurant Revitalization Fund in the American Rescue Plan, which provided $28.6 billion in emergency assistance to eligible restaurants, bars, and qualifying businesses impacted by the COVID crisis.
This program was clearly a success, providing relief to more than 100,000 restaurants and food and beverage businesses across the Nation. Some recent estimates show the program saved over 900,000 jobs, and 96 percent of recipients said the grant made it more likely they would stay in business.
However, there is no question that our initial investment was not enough. The program ran out of funds in just 3 weeks, as the total funding requested exceeded $72 billion, far more than the $28.6 billion provided for in the American Rescue Plan.
This funding gap resulted in 178,000 restaurants who are unable to secure funding in this program, even though they applied to the program and met all of the eligibility requirements. Let me say that again, 178,000 restaurants, many of which are in danger of permanent closure if Congress does not provide them with the relief they need.
The underlying legislation, the Relief for Restaurants and other Hard Hit Businesses Act, would provide for $42 billion to replenish the Restaurant Revitalization Fund, giving the Small Business Administration the funding necessary to close this funding gap and process the applications of those entities who are deemed eligible in the initial application period, providing a lifeline for the restaurant industry that has faced so many challenges over the past 2 years.
In addition to this critical funding, the underlying legislation also provides $13 billion for a new Hard Hit Industries Award Program, which will grant much-needed relief to other small businesses across industries and sectors that were the hardest hit by the pandemic but were not eligible for the Restaurant Revitalization Fund or Shuttered Venue Operators Grant program.
This new program would prioritize those eligible small businesses that experience the heaviest pandemic-related losses, beginning with those that lost 80 percent of their revenue.
To pay for both the establishment of the new program and the replenishment of the Restaurant Revitalization Fund, this bill would use funds reclaimed, seized, or returned to the Federal Government from bad actors attempting to defraud previous recovery programs.
Back in October 2020, the Small Business Administration Office of the Inspector General had already identified $78 billion in potentially fraudulent loans and grants to ineligible entities, and more than 300 individuals have been brought to justice. This legislation also increases oversight and audit requirements, ensuring that this additional support goes to the businesses originally intended to receive assistance.
Mr. Speaker, I have always been an advocate of additional support for the restaurant and hospitality industry, and many of my colleagues on the other side of the aisle have demonstrated support for the Restaurant Revitalization Fund, as well. I hope we continue to see bipartisan support for this effort on the House floor.
I urge all of my colleagues to support the rule and the underlying legislation to deliver critical funding for restaurants and small businesses in communities across the country.
I always appreciate hearing from my colleagues and a distinguished member of the Rules Committee, Mrs. Fischbach. I do note, however, a couple of things before I yield some time.
The first is that as it relates to how the bill is funded, as I indicated, the inspector general himself, that office, indicated there is $78 billion in fraudulent claims that are being recouped by the Federal Government. This bill will cost $42 billion for the Restaurant Revitalization Fund replenishment, another $13 billion, $55 billion. There is plenty of money in those reclaimed dollars to be able to pay for this without having to appropriate new dollars. So this actually should be in line with the principles of some of our more conservative Members to have claimed dollars that are owed to the United States and to its taxpayers.
Secondly, as it relates to workforce shortages, and I think we all know in every industry, and the businesses I talk to back home, are struggling to find workers. Yet, I note yesterday in the Education and Labor Committee, of which I am a member, that we didn't get a single Republican vote for the Workforce Innovation and Opportunity Act, WIOA's reauthorization, which will do great things to continue to move people into the workplace as quickly as possible. Yet, we received no support for that.
So we are going to continue to work on these issues here in this Congress. We are going to continue to lead. This majority is going to continue to look out for small businesses, it is going to continue to look out for people looking for work, and it is going to continue to look out for employers who face worker shortages. So we will continue to support this, and I believe this bill will be a great victory for the 178,000 restaurants who desperately need our support.
I want to just reiterate, this is really a simple issue. And there may be attempts to distract from what is a simple issue, but the Office of Inspector General indicated that we had $78 billion in fraudulent claims. That is an estimate. Some estimates range as high as $200 billion.
It seems silly to me that we wouldn't take advantage of those dollars which are being reclaimed to continue to try to get relief for the many, many tens of thousands, hundreds of thousands of restaurants and their employees across the country.
And I dare say that when I talk to--I have sat down with many, many restaurant owners in the last several months who had made application, and, simply, didn't have the resources in the fund that we had allocated to get relief, continue to talk to me about this.
So this is really a very, very simple question. I know there are a lot of complicated, nuanced questions around here in Congress that we are always dealing with. This is a simple one: Do we want to help these small businesses, or do we choose not to help them? And I think we would argue here that they very much deserve and merit this support.
Ross), another distinguished member of the Rules Committee.
Mr. Speaker, frankly, I am a little perplexed. I think when I get home and talk to my restaurant owners, they are going to say: Why were you having a conversation about something not related to the restaurant revitalization act?
I will explain to them that as much as I would like to get into a conversation about how Putin's aggressive actions in Ukraine have affected gas prices around the world, as much as I would like to have the conversation about oil companies that have decided to continue to reap record profits and not increase supply to meet the demand around the world, as much as we can talk about all those things, that is not why we are here today. We should have that conversation in an appropriate venue.
This conversation and the venue right now that we are in is to talk about the Restaurant Revitalization Fund. It is to talk about the 178,000 restaurants owned by Republicans, Democrats, and Independents all across America in every single district that we have the privilege of representing.
Every single district has restaurants, and that is what we are here to talk about: how to get relief into the hands of those individuals who, for 2 years, have struggled under the most difficult economic circumstances any of us could ever imagine.
Let's make sure we keep our eye on the ball. Let's continue to focus on the question in front of the House.
Scanlon), my friend and distinguished member of the Rules Committee.
Mr. Speaker, I do want to just correct the record as it relates to the Energy and Commerce Committee. I think, just this morning, the committee held a hearing with the heads of oil companies, multinational oil companies, to bring them in to talk about why they refuse to increase supply, which would bring down the costs.
I didn't do exceptionally well in economics when I was in the State University of New York, but I do remember the old supply and demand issue. When demand is high and supply is low, prices rise. We are going to continue to work and push and urge those companies to increase supply to meet demand and bring the costs down.
There is not much we can do about what is going on in Ukraine, although we are desperately trying to help our brothers and sisters there defend their democracy, which has had an incredible impact on gas prices.
Let me also remind everyone who is tuning in, who is watching what is going on, that the issue before the House of Representatives today, the rule that is being considered, is dealing with the difficulties that have been faced by restaurants across this country during the pandemic, which has now lasted for nearly 2 years: the displacement of workers and the impact that it has had on communities all across this country. We are striving to achieve a solution here that will be good for everyone across all 50 States and these small businesses that continue to be the backbone of our local economies.
Mr. Speaker, I have been very grateful for the leadership of Mr. Blumenauer, who has led the charge on this issue for some time now. I think I have probably bothered him dozens of times to ask what we can continue to do to advance his efforts, and he has continued to provide leadership.
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Mr. MORELLE.
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Mr. MORELLE. Jackson Lee).
Ms. JACKSON LEE. Mr. Speaker, I thank the manager for yielding, and I thank him for his leadership. I thank, of course, the chairwoman of the Small Business Committee, Mr. Blumenauer, and the many supporters who have provided support for this legislation.
I am hoping that as my colleagues begin to see the light, that they will understand that it will be far worse for all of the employees who are in restaurants that may close that they will not even be employed to think about paying for any gas prices no matter how much they might be.
I stand with them to ensure that inflation goes down and that we respond to gasoline prices. But they are not clear in what we are doing today. We are helping small and hard-hit businesses--sole proprietors, independent contractors, and businesses that are not over 200 employees--to keep these employees who have suffered from the devastation of the pandemic.
We are doing more. We are not spending an extra penny because we are capturing those dollars from those who fraudulently used dollars before. So we are making good on our promise to spend the American tax dollars correctly. We are having a data collection. We are going to have oversight on this particular program to ensure that it is spent effectively.
We are going to respond, if you will, to the needs of the mom and pops, the really oldest and distinguished restaurants like This is It in Houston, Texas; Burns Original BBQ; and J&J; as people who have stood the storm yet, have kept employees but that didn't know whether they could keep their doors open.
This is an important and vital piece of legislation. I support the underlying legislation, which is the bill that deals with relief for restaurants and other hard-hit small businesses and the underlying rule.
Don't you get it?
We are keeping businesses open and keeping people employed. That is what we are doing today. Support the rule and the underlying bill.
Ms. JACKSON LEE. Mr. Speaker, I rise in strong support of the rule to consider H.R. 3807, the ``Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022,'' which provides $70.6 billion in FY2022 for the Restaurant Revitalization Fund.
Mr. Speaker, I am pleased that this committee is reconsidering this critical piece of legislation for America's restaurant owners. The American Rescue Plan made great progress in providing the funding in an equitable manner, prioritizing women, veteran, and economically and socially disadvantaged restaurant owners. In addition, the majority of funds were reserved for restaurants whose gross receipts were no more than $1,500,000 dollars.
It is essential to promote equity through the Restaurant Revitalization Fund Mr. Speaker, considering that only 8 percent of restaurants are owned by blacks and 23.8% of Asian owned businesses are restaurants. As legislators we must do everything we can to ensure their survival.
To underscore the personal importance this funding holds to me, I would like to mention a widely loved, black owned, and historic Third Ward restaurant: Cream Burger.
Cream Burger sits on the corner of Elgin and Scott and has been in operation for 60 years. It is a cash only restaurant that has only had two additions to the menu across the entirety of its existence: chili cheese fries and bacon.
The Greenwood family has been serving the residents of the Third Ward their delicious burgers and homemade ice cream for decades and has no plans of closing any time soon.
The original owners of the restaurant, Verna and Willie Greenwood, opened the restaurant to generate their own income and create generational wealth, which they certainly have done. Ever since their tragic passing, the business is now owned and operated by their daughters, Beverly and Sandra.
Beverly and Sandra hope to pass the business onto the next generation of children so they can, ``see it through. Maybe 100 years,'' Beverly said.
The restaurant sees a range of Third Ward customers every day, from the students at the University of Houston to the cashiers working at the historic Houston Food Mart just down the street.
Cream Burger is iconic in the city of Houston, and I hold it in the highest reverence. It, and so many restaurants like it, is one of those restaurants that would receive funds from this legislation.
It is for that reason Mr. Speaker I support the rule to consider H.R. 3807, the ``Relief for Restaurants and other Hard Hit Small Businesses Act of 2022.'' It will help save so many businesses like the beloved Cream Burger, so I urge my colleagues to support the rule as well.
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Mr. MORELLE. Mr. Speaker, I will say this, that I suspect when, hopefully, this bill becomes law and we have helped save the 178,000 restaurants around this country that a number of my colleagues on the other side of the aisle will be taking credit for it. I hope many of them vote for it despite their unwillingness to really have a conversation about it today and to talk about extraneous issues.
24, 2022] National Restaurant Association Asks Congress for More Grant Money as Omicron Hits Industry (By Amelia Lucas)
The National Restaurant Association is asking Congress to replenish the Restaurant Revitalization Fund as the Covid omicron variant hits operators' businesses.
Last year, lawmakers created the $28.6 billion fund to aid bars and restaurants struggling in the wake of the pandemic. The grants were designed to make up for a restaurant's full pandemic losses of up to $5 million for a single location or $10 million for a business with fewer than 20 locations. Publicly traded companies were ineligible, but their franchisees could still apply.
Since the fund was depleted, restaurants have been pushing for Congress to replenish it. Several lawmakers have introduced legislation to do so, but the bills haven't gained traction, and the Biden administration hasn't appeared interested in supporting the measures.
But the latest surge in Covid-19 cases and its impact on restaurants could change minds.
The National Restaurant Association's latest survey of operators found that 88% of restaurants saw indoor dining demand wane because of the omicron variant. More than three- quarters of respondents told the trade group that business conditions are worse now than three months ago. And the majority of operators said their restaurant is less profitable now than it was before the pandemic.
``Alarmingly, the industry still hasn't recreated the more than 650,000 jobs lost early in the pandemic, a loss 45 percent more than the next closest industry,'' the trade group's top lobbyist, Sean Kennedy, wrote in a letter to congressional leadership for both parties.
Kennedy also touted the benefits of the first round of RRF grants. The trade group estimates that more than 900,000 restaurants jobs were saved by the initial round of funding, and 96 percent of recipients said the grant made it more likely they could stay in business. A full replenishment of the fund would save more than 1.6 million jobs, according to the trade group's estimates.
Mr. Speaker, first let me thank my colleague and friend, Mrs. Fischbach. We spend a lot of time together in the Rules Committee, and I always appreciate our conversations. While we may not agree on issues from time to time, I always appreciate her earnestness, and I appreciate her good work.
I want to thank all of my colleagues for their words in support of the rule before us today.
As I mentioned earlier, Congress acted last year to provide much- needed relief for restaurants and other small businesses, but we must do much more. Our economy simply cannot survive without small businesses, and it is paramount that we redouble our commitment to ensuring their continued success.
I pledge to always be an ally in that fight, and I know my colleagues join me in that. I look forward to voting in favor of this effort to bring much-needed relief to local restaurants and the small business community.
The material previously referred to by Mrs. Fischbach is as follows: Amendment to House Resolution 1033
At the end of the resolution, add the following:
Sec. 2. Immediately upon adoption of this resolution, the House shall proceed to the consideration in the House of the bill (H.R. 6858) to strengthen United States energy security, encourage domestic production of crude oil, petroleum products, and natural gas, and for other purposes. All points of order against consideration of the bill are waived. The bill shall be considered as read. All points of order against provisions in the bill are waived. The previous question shall be considered as ordered on the bill and on any amendment thereto to final passage without intervening motion except: (1) one hour of debate equally divided and controlled by the chair and ranking minority member of the Committee on Energy and Commerce; and (2) one motion to recommit.
Sec. 3. Clause 1(c) of rule XIX shall not apply to the consideration of H.R. 6858.
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Mr. MORELLE. Mr. Speaker, I urge a ``yes'' vote on the rule and the previous question, I yield back the balance of my time, and I move the previous question on the resolution.
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