The NCSL Blog

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By Tres York and Haley Nicholson

The Senate passed the Paycheck Protection Program and Health Care Enhancement Act on Tuesday, which provides $310 billion to the Paycheck Protection Program for small businesses, $100 billion to hospitals for aid and more testing capability, and $60 billion for small business disaster loans. The House is expected to pass the measure Thursday. Details:

Illustration: Aïda Amer/AxiosPaycheck Protection Program

  • Increases the appropriation for Paycheck Protection Program for small business loans by $310 billion, from $349 billion to $659 billion total.
  • Sets aside $60 billion of the $310 billion specifically for:
    • $30 billion in loans issued by insured depository institutions or credit unions with between $10 billion and $50 billion in assets.
    • $30 billion in loans issued by insured depository institutions or credit unions with less than $10 billion in assets, or community lenders such as community development financial institutions and minority depository institutions.

Disaster Loans

  • Provides an additional $10 billion for Emergency EIDL Grants (the original appropriation for the program in the Coronavirus Aid, Relief and Economic Security Act was also $10 billion).
  • Provides an additional $50 billion for the Disaster Loans Program Account, which is the Small Business Administration’s broader disaster loan program.
  • Clarifies that agricultural enterprises with not more than 500 employees are eligible for disaster loans and grants.

 Hospital and Provider Funding

  • Provides an additional $75 billion for health care providers through the Public Health and Social Services Emergency Fund, which was created under the CARES Act, and is available to reimburse providers for COVID-19 related expenses and lost revenue.
  • Additional funding set-aside includes $600 million for community health centers and federally qualified health centers as well as $225 million for rural health clinics, $22 million for the Food and Drug Administration and $6 million for the U. S. Department of Health and Human Services (HHS) inspector general for oversight of the bill’s funds.

Testing Funding and Requirements

  • Provides $25 billion for COVID-19 testing including for active infections and those with previous exposure, along with $1 billion to be used to cover tests for the uninsured.
  • Testing funding can be used for: manufacturing and distributing tests, procuring supplies like personal protective equipment for administering tests, developing rapid point-of-care tests and conducting surveillance and contact tracing.
  • Includes $11 billion for states, localities, territories and American Indian tribes. Disbursement will be based on the following:
  • At least $4.25 billion would be allocated to states, localities and territories based on their relative number of COVID-19 cases.
  • At least $2 billion would be allocated to states, localities and territories based on a formula that applied to the Public Health Emergency Preparedness cooperative agreement in fiscal year 2019.
  • At least $750 million would be allocated to tribes in coordination with the Indian Health Service.
  • Requires anyone receiving funds to submit a testing plan to the HHS including the number of tests needed, monthly estimates of lab and testing capacity and information on how testing will be used to ease community mitigation policies.
  • Provides $1 billion to the Centers for Disease Control and Prevention (CDC) for surveillance, contact tracing and lab capacity expansion. The CDC and several other agencies will receive funding to develop testing, accelerate research, work on manufacturing and purchase tests.

Source for health information: Bloomberg Government

Tres York is a policy specialist in NCSL's State-Federal Relations Division.

Email Tres

Haley Nicholson is senior policy director in NCSL's State-Federal Relations Division.

Email Haley

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This blog offers updates on the National Conference of State Legislatures' research and training, the latest on federalism and the state legislative institution, and posts about state legislators and legislative staff. The blog is edited by NCSL staff and written primarily by NCSL's experts on public policy and the state legislative institution.