March 26, 2020

COVID-19 Policy Update: DPA And Stimulus Summaries

As the country continues to cope with the ongoing COVID-19 emergency, the President and Congress have taken several actions to assist in response.

Congressional Action

Congress has passed two bills in response to COVID-19. A third package has passed the Senate and is expected to pass the House some time tomorrow. Following final passage of the third package, both chambers are expected to be in recess until at least April 20. Over the next several weeks, Congress is expected to begin to put together a fourth package aimed at long term recovery to COVID-19.

The third response package totals over $2 trillion, and as passed by the Senate includes:

• Provides over $100 billion for hospitals, community health centers, and public health funding
• Increases preparedness funding by $27 billion
• Expands FEMA disaster assistance fund by $45 billion
• Cuts business taxes
• Expands unemployment benefits
• Provides small business loans and grants

HIDA Government Affairs will provide more in-depth analysis following final passage.

Executive Action

The President has also invoked several Executive Orders to assist in the Agency response including the Defense Production Act (DPA) which grants the President the authority, in the interest of national defense, to direct what the private sector produces. At this time, while the President has invoked part of the DPA, he has not yet used it to direct additional manufacturing efforts. There have been increased calls for the President to implement DPA by certain members of Congress as well as some private sector industries. At this time, the Administration has said the private sector has been cooperative and the use of DPA is not yet necessary.

HIDA will continue to stay engaged with our Congressional and Federal partners as the industry continues to respond to COVID-19. Please feel free to reach out to us at HIDAGovAffairs@HIDA.org or 703-549-4432.