Coronavirus Government Response Update—Republicans Finalize Coronavirus Package

July 28, 2020

Welcome to the Coronavirus Government Response Update. This information is intended to keep ISSA members up to date on fast-moving government affairs related to the COVID-19 pandemic, as well as other public policy issues important to the cleaning industry. Today’s update touches on the White House and Republican Senators introducing a coronavirus package, the U.S. manufacturing sector regaining momentum but paired with virus surges, states using COVID-19 relief dollars to protect businesses from tax increases, and more. 

White House, Senate GOP Introduce Coronavirus Package
The White House and Senate Republicans rolled out an estimated US$1 trillion coronavirus relief package Monday evening. Senate Majority Leader Mitch McConnell, R-KY, introduced the plan that focuses on new funding for schools, a new round of stimulus payments to Americans, and allows for some additional wage replacement for unemployed workers. This relief bill also includes new legal protections for businesses against pandemic-related lawsuits. The introduction of the GOP proposal marks the start of bipartisan negotiations.

US Manufacturing Sector Regaining Momentum, but Surging Virus Cases Threaten Recovery
On Monday, the U.S. Commerce Department reported an improvement in manufacturing, driven by pent-up demand following the reopening of businesses. According to CNBC, the budding recovery is threatened by a resurgence in new cases of the coronavirus, which has led to some business closures and halted reopenings. “The manufacturing sector remains exposed to weak demand, which will impact investment and hiring decisions going forward,” said Rubeela Farooqi, Chief U.S. Economist at High Frequency Economics in White Plains, New York.

States Use COVID-19 Relief Dollars to Hold Down Business Taxes
Governors and lawmakers in at least eight states have used millions of federal coronavirus relief dollars to protect businesses from tax increases as unemployment skyrockets. According to The Pew Charitable Trusts, they’re pushing relief dollars into unemployment insurance trust funds, which are funded by business taxes and pay out benefits to laid-off workers. If the funds start to run out of money—as they now are in many states—state and federal law triggers tax increases to replenish the accounts.

Five Charts Illustrate U.S. Economic Trends Amid Coronavirus Pandemic
States are taking differing approaches to reopening and closing, and the economy is feeling the impact differently depending on the sector. Five charts illustrate trends in important industries that help track reopening progress in the U.S: direction requests, restaurant bookings, hotel occupancy, air travel, and home purchases.

Other links of interest:

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