House Democratic leaders and the Administration are compiling ideas for the next congressional bill to respond to the coronavirus crisis and economic recovery, and Speaker Nancy Pelosi (D-CA) signaled an increased urgency, saying March 30, "this isn't about how fast we can do it, it's how fast we must do it."

The Speaker also signaled that a deal on a congressional response bill #4 would not be expected before the week of April 20, after a previously scheduled holiday recess. Guidance to members from House leaders yesterday said the House is not expected to meet sooner than Monday, April 20, aligning with the next voting day for the Senate. House leaders had not previously set a timeframe for a possible return to Washington, and leaders of both chambers have said lawmakers could be brought back to session sooner if necessary. Speaker Pelosi said while Congress would be out for a few more weeks, House committees could work on the next package in the interim.

Speaker Pelosi also said in a New York Times interview that one idea under consideration for the next package is rolling back the TCJA $10,000 annual limit on the State and local tax deduction, saying acting to "retroactively undo SALT" could provide cash to people. "We could reverse that for 2018 and 2019 so that people could refile their taxes" and get more money back, Pelosi said. "They'd have more disposable income, which is the lifeblood of our economy, a consumer economy that we are." The House approved a two-year SALT cap repeal bill in December, but Republicans have been opposed. The Speaker is also calling for additional direct payments to individuals.

In a call with reporters, House Democrats laid out other ideas for a next package, including more strongly signaling they want investment in infrastructure, going beyond roads and transit systems to include broadband and water supply. Ways and Means Committee Chairman Richard Neal (D-MA), who advocated infrastructure above other stimulus ideas in a hearing with Treasury Secretary Steven Mnuchin about a month ago, said in the New York Times report that it was time to act and that infrastructure could be treated as an economic investment. President Trump March 31 also called for infrastructure investment.

House Democrats continue to call for the fourth bill to include priorities they have repeatedly stated, including personal protective equipment and OSHA rules that protect workers, additional family medical leave, more money to states, food program assistance, and multiemployer pension relief. With regard to health care, Energy & Commerce Chairman Frank Pallone (D-NJ) said the next legislative package may create a federal point-person for the medical equipment supply chain and a database in addition to providing free treatment for COVID-19, Bloomberg Government reported.

BGOV also reported that proposals under consideration by the Administration include more state aid as well as financial assistance for mortgage markets and the travel industries. President Trump has talked about proposals to provide hazard pay to those on the frontlines of the crisis, as well as restoring the ability for corporations to deduct the full cost of meals and entertainment from their taxes.

House Republicans have been expressing some trepidation over pursuing a fourth response now. However, on the Senate side, Senator Ted Cruz (R-TX) said March 30 on Bloomberg Television, "if the crisis continues for substantially longer I have no doubt that the Congress will have to act again."

CARES Act implementation

Meanwhile, implementation of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law No. 116-136) continues, with one focus being the Paycheck Protection Program to provide $350 billion worth of loans up to $10 million in conjunction with the Small Business Administration (SBA), with loan forgiveness tied to employee retention. Secretary Mnuchin said on Fox Business March 30 that the program with the SBA "is one of the most exciting parts of this package" and that "these loans will be available starting on Friday."

The IRS March 30 provided a news release, "Economic impact payments: What you need to know."

The IRS also released draft instructions for Form 7200, Advance Payment of Employer Credits Due to COVID-19.

The Treasury Department early March 31 released guidelines and procedures for support under the CARES Act for "passenger and cargo air carriers, eligible businesses and businesses critical to maintaining national security that have experienced losses as a result of coronavirus."

In addition, Politico reported March 31 that dozens of trade groups are proposing a federal COVID-19 recovery fund to help affected businesses. A letter to President Trump and congressional leaders said beyond loan programs in the CARES Act, "additional liquidity will be required for impaired industries and businesses to avoid an unprecedented systemic, economic crisis."

For reference, EY Alerts on corporate and international implications and more are available.

EY Webcasts this week include 'Tax in the time of COVID-19' — Tax implications and opportunities stemming from the CARES Act, on Friday, April 3 from 1-2 p.m. Topics include:

• Details of the employee retention credit made available by the Coronavirus Aid, Relief and Economic Security (CARES) Act
• Opportunities to use losses
• Accounting method and filing considerations

Register here.

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