Policy update: New bipartisan COVID-19 relief bill and FY 2021 spending bill gain momentum

This Friday, December 18, 2020, is the new deadline for Congress to pass a FY 2021 spending bill (or another short-term continuing resolution) to ensure the federal government continues to operate. To meet that deadline, both House and Senate leadership are convening this week in an effort to build agreement and support for both a sweeping trillion dollar FY 2021 omnibus spending bill as well as a coronavirus relief package – with the hope that both would pass together before the Friday deadline.

A bipartisan groups of senators who are working on a new COVID-19 relief bill released a detailed summary and legislative text on December 14. This compromise bill includes an extension of unemployment insurance and funding for schools, vaccine distribution, and small businesses, among other provisions. The bipartisan coalition was not able to reach an agreement on the two COVID-19 relief issues that have been the most contentious for Congress to solve: liability protections for businesses, schools, nonprofits, and other entities operating during the pandemic, as well as more funding for state and local governments. Instead, the bipartisan group of senators broke the package into two parts, a $748 billion bill bundling together education, child care, broadband access, small business support, and other less-controversial proposals; and a second more targeted bill that includes liability protections backed by Republicans and $160 billion in state and local aid sought by Democrats.

From an afterschool and summer learning program perspective, the first of the two new COVID-19 relief bills, known as the Emergency Coronavirus Relief Act of 2020, includes the following:

• Education funds to be distributed in the same manner as the CARES Act, including:
  • $54 billion for the Elementary and Secondary School Emergency Relief Fund (up from $13.5 billion in the CARES Act)
  • $7.5 billion for the Governors Emergency Education Relief Fund (up from $3 billion in the CARES Act), including $2.5 billion for private schools
  • $20 billion for the Higher Education Emergency Relief Fund (up from $14.25 billion in the CARES Act)
  • The Elementary and Secondary School Emergency Relief Fund allowable uses of funds are modified from those in the CARES Act, and include afterschool, stating that the funds can be used for, “Meeting the social and emotional needs of students and educators, including providing mental health services and trauma-informed supports, including using diagnostic assessments to identify students’ needs, supporting access to school-age child care, and services provided by afterschool programs and community learning centers.” This new language should help get more education funds to community learning center and hubs, as well as programs operating during virtual school days.
• The flexibility language from the bipartisan 21st Century Community Learning Centers Coronavirus Relief Act (S. 4868) is included in the new package. This language provides the flexibility to use 21st CCLC funds during the virtual school day in the 15 states that have not been granted 21st CCLC flexibility waivers from the Department of Education. Unfortunately the additional funding for 21st CCLC was not included in this package.
• Second round of Paycheck Protection Program (PPP) funds with an additional $300 billion provided to the Small Business Administration. Funding is targeted to hardest-hit nonprofits and small businesses to receive a second forgivable Paycheck Protection Program (PPP) loan. Eligibility criteria differs from that in the CARES Act.
• For Child Care, the bill appropriates $10 billion for a new Child Care Stabilization Fund grant program at the Department of Health and Human Services to provide grants for child care providers, including school-age providers:
  • Grants would be available to child care providers that are currently open or temporarily closed due to COVID-19, regardless of whether they had previously received funding through the existing Child Care and Development Block Grant (CCDBG) program.
  • Providers could use stabilization grants for a variety of purposes, including personnel costs; sanitization and cleaning; personal protective equipment; fixed costs, including mortgage obligations, rent, utilities and insurance; and modifications to child care services as a result of the COVID-19 pandemic.

• The proposed bill would provide $3 billion for an Emergency Educational Connectivity Fund to provide E-rate support for educational and distance learning providers. The funds can be used for hotspots, devices, and other connected devices. The bill also includes $6.25 billion for State Broadband Deployment and Connectivity grants to expand affordable access to broadband.
• $200 million to Institute of Museum and Library Services (IMLS) to purchase and distribute Internet-connected devices to libraries in low-income and rural areas.
• Provides increased funding for school and child care meal programs.

The second measure, the Bipartisan State and Local Support and Small Business Protection Act of 2020, would provide $160 billion for state, local, and tribal assistance. The bill would provide $152 billion through the Coronavirus Relief Fund (CRF) established in the CARES Act, which would be distributed at governors’ discretion. Several states have put CARES Act CRF funds toward afterschool, school-age care, and other education initiatives. It would also extend the deadline to use funds to Dec. 31, 2021. Currently, those funds are set to expire at the end of this year. This second bill also provides limited liability protection to businesses, schools, and other institutions.

The current plan is for the Emergency Coronavirus Relief Act of 2020 (and possibly the Bipartisan State and Local Support and Small Business Protection Act of 2020) to be attached to the FY 2021 Omnibus spending bill with votes on the entire package to be held in the House of Representatives the afternoon of Thursday, December 17, and votes in the Senate on Friday, December 18. It is also possible Congress will have to work into the weekend to complete these votes. Check back for updates this week, particularly after the legislative text of the FY 2021 spending bill is released.