DC Tax Flash: McConnell Sketches Out Phase-Four Relief Legislation

Tax Alert
07.21.2020

In remarks on the Senate floor today, Majority Leader Mitch McConnell (R-KY) outlined the major policy goals for the phase-four coronavirus relief package he is assembling with Senate Republicans and the White House. In addition to liability protections, he said the next bill will focus on kids, jobs and healthcare.

Sen. McConnell hinted that the forthcoming bill will not be "another CARES Act to float the entire economy, nor a typical stimulus bill." He made the following key points about the legislation:

Education 

"This majority is preparing legislation that will send $105 billion so that educators have the resources they need to safely reopen."

Jobs

"Our bill takes several specific incentives to hire and retain workers and turn the dials on those policies way up. The legislation will help reimburse for safe workplaces, so that Main Street can afford the PPE, testing, cleaning, or remodeling to protect workers and entice customers."

"[W]e'll also be proposing a targeted second round of the PPP [Paycheck Protection Program] with a special eye toward hard-hit businesses."

Relief

"[W]e want another round of direct payments to help American families keep driving our national comeback."

Health Care

"Our proposal will dedicate even more resources to the fastest race for a new vaccine in human history, along with diagnostics and treatments. Our bill will also protect seniors from a potential spike in premiums. And the federal government will continue to support hospitals, providers, and testing."

Sen. McConnell said he will unveil the GOP proposal "very soon" and then pivot to discussions with Democrats on a bipartisan compromise.

Treasury Sec. Steve Mnuchin and White House Chief of Staff Mark Meadows are meeting with Sen. McConnell today to discuss the emerging package. Meadows and Mnuchin are also meeting with House Speaker Nancy Pelosi (D-CA) and Senate Minority Leader Chuck Schumer (D-NY) this afternoon. 

The full text of Leader McConnell's remarks on the Senate floor today is posted here.


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