Release of an interim coronavirus measure that would primarily provide more funding for the now-exhausted CARES Act Paycheck Protection Program (PPP) and for hospitals was delayed over remaining differences on provisions such as coronavirus testing and perhaps one Small Business Administration (SBA) issue. An announcement appears imminent. Senate Democratic leader Chuck Schumer (D-NY) said on CNN this morning that drafters are “still dotting the i’s and crossing the t’s but every major issue was resolved,” echoing House Speaker Nancy Pelosi’s (D-CA) comments last night that negotiators had “come to terms on the principles of the legislation” and were “down to the fine print.”

The Senate has set a pro forma session for 4 p.m. today in hopes of having something to pass by unanimous consent, and House Majority Leader Steny Hoyer (D-MD) announced that the House could meet as early as Thursday, April 23 at 10:00 a.m.

Reports continue to indicate that the emerging measure could provide:

• $310 billion for the PPP, with some directed to those who have struggled to get loans from banks
• $75 billion for hospitals
• $25 billion for testing
• $60 billion for disaster loans (Economic Injury Disaster Loan program)

Differences over testing funding seemed to mirror a broader dispute between the White House and lawmakers and governors of both parties that boils down to whether the approach should be at the national level or state driven. Senator Schumer yesterday tweeted that Democrats “are fighting for our $30 billion plan for a comprehensive national testing strategy. Because we need major new investments to bolster the supply and manufacturing chain and significantly expand free testing for all, reporting, and contact tracing.” The Washington Post reported that Treasury Secretary Mnuchin and the Administration were pushing for a state-driven approach to testing, with flexibility.

In his own tweets, President Trump ascribed the uproar over testing to “the Radical Left, Do Nothing Democrats,” and compared it to previous concerns over an insufficient number of ventilators. “Now they scream... ‘Testing, Testing, Testing,’ again playing a very dangerous political game. States, not the Federal Government, should be doing the Testing - But we will work with the Governors and get it done,” he said.

The President engaged in a back-and-forth with National Governors Association Chair Maryland Governor Larry Hogan (R), saying the governor “didn’t understand much about what was going on” in questioning the Administration’s efforts on testing. The governor tweeted, “I’m grateful to President Trump for sending us a list of federal labs and generously offering Maryland use of them for #COVID19 testing. Accessing these federal labs will be critical for utilizing the 500,000 tests we have acquired from South Korea.”

While Senate passage of an interim measure is expected to be quick and not require the presence of many members, House leaders are expecting an objection from the Republican side to moving any legislation on an expedited basis that will require bringing at least a quorum – more than 200 members – to Washington. During House passage of the CARES Act, a quorum of members was present, but a roll call vote was not required. A Fox News reporter tweeted that some Republicans are demanding a roll call vote this time even amid widespread concerns among House members – across the ideological spectrum – over the health risks of returning to Washington and convening, and that if a vote is required members would do so in groups.

Bloomberg Government this morning reported that Rep. Hoyer expects the House to, on the same day it processes an interim measure, consider a remote voting plan outlined by House Rules Committee Chairman James McGovern (D-MA) that would temporarily implement remote voting during the coronavirus pandemic, allowing members unable to travel to Washington to provide instructions for each vote to a member authorized to cast votes on their behalf. 

Yesterday, the IRS announced that those receiving Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) and Veterans Affairs beneficiaries who didn’t file a tax return in the last two years need to act to have $500 per eligible child added automatically to their soon-to-be-received $1,200 Economic Impact Payment. Also, Revenue Procedure 2020-28 provided two tax return filing procedures for certain individuals who are eligible for the economic impact payment but are not otherwise required to file 2019 Federal income tax returns.

EY Alerts and other resources are here.

The global EY Tax COVID-19 Response Tracker has been updated through April 20.

EY Webcasts this week include:

• Today, April 21. Tax in a disrupted market: Final and proposed hybrid arrangement regulations, 1:00 p.m. ET. In this fourth webcast in the series, please join our panelists for an in-depth discussion of the recently released final and proposed regulations under IRC Sections 245A, 267A and 881 on various hybrid arrangements and under IRC Section 951A on certain prepaid deductions. Register.
• Friday, April 24 at 12:00 EST. In addition to providing an update on the legislative and economic landscape, panelists will discuss what the economic downturn means for transfer pricing, the significance of the IRS's recent actions on net operating loss carrybacks and provide an update on the agency’s latest compliance activity. Register.

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