WASHINGTON, D.C.– This afternoon, the Senate released its deficient, limited plan for additional Coronavirus stimulus relief. The so-called “skinny bill” focuses on providing widespread corporate immunity to employers whose workers and staff get sick on shift and extends Trump’s flawed, fraud-ridden Paycheck Protection Program (PPP). Meanwhile, the legislation fails to provide adequate support to families in the form of rental assistance or unemployment insurance and leaves public schools high and dry.
Here are some of the bill’s key failures:
The bill extends the flawed Paycheck Protection Program (PPP).
- It includes:
- An additional $257 billion for the program and extends it to the end of the year.
- Greater protections for lenders (banks).
- A reaffirmation of the Trump administration’s interim final rule allowing churches and religious organizations to receive PPP loans.
- Provisions allowing some businesses to take out second loans, even though many businesses were excluded from the first round.
- It includes:
- The bill hangs public schools out to dry.
- The bill codifies extra relief for private schools that has been overturned by several federal courts over the last few weeks.
- The bill withholds two-thirds of aid to local education agencies until governors approve reopening plans.
- There is a tax credit for individuals and corporations that make contributions to scholarship granting organizations for private schooling.
- The bill does not include an extension of the $600/week boost to unemployment insurance.
- It instead includes language providing $300/week, through December 27, 2020.
- The bill includes more Restrictions for the U.S. Postal Service (USPS).
- The bill withholds USPS’ ability to spend its CARES Act funds unless USPS has less than $8 billion in cash on hand.
- The bill provides for blanket corporate immunity for businesses that contribute to their employees or customers getting sick.
- 63 pages of the bill (22%) deals just with the corporate immunity proposal, which is expansive and permits companies to gain a safe harbor simply for making a “reasonable effort” to follow any government standard or guideline, regardless of conflicts amongst guidance between federal, state and local authorities.
- The bill includes a $184 million bailout for the coal industry and removes public lands protections and fast-tracks non-energy fuel mining
- The legislation would authorize the Department of Energy to spend $23 million per fiscal year starting in 2021 through 2028 to develop coal and coal byproducts.
- It would also grant the Secretary of the Interior broad authority to fast-track critical mineral mining on public lands.
- The bill would ask more of states but would give more to pharmaceutical companies.
- It would requires states to agree to provide matching funds to medical stockpiles starting 2022/FY2023.
- The bill says the Public Health and Social Services Emergency Fund “may be used for the construction, alteration, or renovation of non-federally owned facilities for the production of vaccines, therapeutics, diagnostics, and medical supplies where the [HHS] Secretary determines that such a contract is necessary […]”
Charlie Munger: Invert And Use “Disconfirming Evidence”
Charlie Munger is considered to be one of the best investors and thinkers alive today. His thoughts and statements on investment research, investment psychology, and general rational behavior are often incredibly insightful. Anyone can learn something from this billionaire investor and philosopher. Q2 2020 hedge fund letters, conferences and more If you’re looking for value Read More