Coronavirus Federal Response Update From
Congressman Andy Barr 

 

China Investigation

 

This week, House Concurrent Resolution 97, my legislation to establish a bipartisan, bicameral investigation into the origins and China’s handling of the COVID-19 pandemic, gained tremendous momentum with 57 of my colleagues signing on as co-sponsors.  Among my colleagues supporting this legislation are Minority Whip Steve Scalise, House Republican Conference Chair Liz Cheney, Congresswoman Elise Stefanik and Congressman Dan Crenshaw.  The joint select committee established by the legislation would investigate and report on the following issues:

  • The origins and causes of the 2019 novel coronavirus, including evidence the virus originated in the Wuhan Institute of Virology lab, as well as China’s response to the outbreak.
  • China’s suppression of information which enabled rapid spread of the disease, including censorship of whistleblowers like Dr. Li Wenliang who sounded the alarm before dying of COVID-19. 
  • The Chinese Communist Party’s campaign of propaganda and disinformation, including denials of human-to-human transmission and conspiracy theories regarding the spread of the virus, including blaming the United States military for its spread.
  • The Chinese government’s denial of humanitarian assistance by foreign governments, non-governmental organizations, charitable and faith-based organizations, which enabled the disease to spread.
  • China’s actions to influence the World Health Organization to cover up the outbreak and repeat the lie of no human-to-human transmission well into January.
  • China’s efforts to vacuum up and hoard critical personal protective equipment and pharmaceuticals, weaponizing the global supply chain against the international community, including the United States.
  • Recommendations regarding the United States’ response to China and policy changes to improve the resiliency of the domestic supply chain to reduce the United States’ dependence on critical medical supplies and pharmaceutical components from foreign sources.

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To help inform my legislation, I participated this week in a conference call with two well-respected experts on China: Rosemary Gibson, senior advisor for The Hastings Center and author of China Rx: Exposing the Risks of America’s Dependence on China for Medicine and Dr. Derek Scissors, a resident scholar at the American Enterprise Institute (AEI), where he focuses on the Chinese and Indian economies and on U.S. economic relations with Asia.  Their expertise and insight reinforced the fact that we must hold China accountable and break China’s medical supply chain monopoly to prevent this kind of pandemic and economic distress from ever happening again. 

Gibson pointed out that the United States is dangerously overdependent on China for generic drugs.  While China does not make the pills we take, they do control 80 to 90 percent of the market share of the raw materials and chemicals that go into our drugs.  Lower labor costs, limited regulations and government subsidies in China, in addition to Chinese cartels dumping these raw materials on the global market at below-market prices, have driven out U.S. competition over the years.  This explains why we do not make penicillin, aspirin or vitamin C in the United States anymore.  The result is a top Chinese Communist Party official who recently threatened to withhold critical antibiotics, sedatives and other drugs from export to “throw the American people into an ocean of coronavirus.”

Scissors reinforced and underscored the need for policy reforms to move supply chains out of China and back to the United States beyond just pharmaceuticals to other critical products and services, including rare earth elements, consumer electronics, 5G technology and telecommunications.  He pointed out that since China will always overmatch its adversaries with subsidies, relocating supply chains will require more than just tax incentives and will also require long term contracts with U.S. government agencies like the Department of Defense, the Department of Veterans Affairs and the Strategic National Stockpile.  It will also require imposition of secondary sanctions such that firms wishing to conduct business in the United States cannot also engage in production in China.

Conversation with Ambassador Kelly Craft

This week, I also participated in a tele-town hall with Kentucky native and Lexington resident Kelly Craft, the U.S. Ambassador to the United Nations to discuss the Trump Administration’s global and diplomatic response to the pandemic, her outstanding work at the U.N. on behalf of the American people and our mutual interest in holding China and the World Health Organization accountable for concealing the origins of and enabling the spread of the 2019 novel coronavirus.  You can listen to a recording of the entire tele-townhall by clicking here. 

Paycheck Protection Program & the Economy

Economic data for the first quarter of 2020 was released this week, showing a contraction of 4.8 percent, the biggest drop in quarterly economic output since the fourth quarter of 2008.  Given the unprecedented government-imposed shutdown of the economy, unfortunately, this is not a surprise.  The U.S. Department of Labor reported an additional 3.8 million Americans filed unemployment claims last week, meaning that since the beginning of the spread of the virus in the United States over six weeks ago, more than 30 million Americans have now filed for unemployment.  That’s why I strongly support and voted for the Paycheck Protection Program (PPP), a forgivable loan program for small businesses designed to keep workers on the payroll first approved as part of the Coronavirus Aid, Recovery and Economic Security (CARES) Act and then replenished as part of the Paycheck Protection and Health Care Enhancement Act.  

The first wave of PPP funding resulted in more than 1.6 million loans totaling $340 billion to American businesses.  This included over 17,000 approved loans, totaling $3.4 billion to Kentucky small businesses. 

The second round of PPP funding was opened up this week for small businesses in Kentucky and nationwide.  As of close of business on Wednesday, April 29, the U.S. Small Business Administration (SBA) had processed an additional 960,000 loans totaling $90 billion in PPP loans to small businesses from more than 5,300 lenders.  To date, more than 2.5 million small businesses nationwide have secured these job-saving forgivable loans, the average of which is $206,000 and 75% of which have been under $150,000, meaning the vast majority of these PPP loans are going to the smallest Main Street businesses.

Congress reserved $60 billion from the second tranche of PPP funds for small lenders and their customers, typically smaller Main Street businesses.  In addition, this week, the SBA set aside eight hours during which it only accepted PPP loans from the nation’s smallest lending institutions with asset sizes less than $1 billion to ensure relief funds reach small businesses that need it most.  The Treasury Department also announced earlier this week that any loan for $2 million or more will be reviewed before forgiveness.  As the Ranking Republican on the Oversight Subcommittee for the House Financial Services Committee, I sent a letter to the Treasury Department to request additional information about these loans to protect the taxpayer and make sure loans are only going to qualifying businesses.  You can read a copy of that letter here.

Additionally, at the end of last week, I received important guidance from the U.S. Department of Treasury regarding the eligibility of the horse racing industry for PPP funds.  I recently wrote a letter to Treasury Secretary Steven Mnuchin, and I spoke to him and Deputy Secretary Justin Muzinich personally, requesting clarity on this issue to ensure that businesses in Kentucky such as Keeneland and the Red Mile are eligible for this program.  I appreciate Secretary Mnuchin’s swift and favorable action on this issue which has saved hundreds of jobs in the horse industry here in central Kentucky.  Joe Costa, the President of the Red Mile, recently discussed the significance of this decision in a video, which you can see here.  

Lastly, this past year, I led the American Worker Task Force in the Republican Study Committee to develop policy initiatives to strengthen workforce development, improve resources for and flexibilities for education, and increase opportunities for American workers and families.  The policies outlined in this proposal are timely and will help provide a partial road map to engineer the great American comeback for workers, families, and businesses impacted by the COVID-19 pandemic.  You can read our proposals here. 

I will continue to work with my colleagues in Congress and the financial regulators on a whole-of-government fiscal and monetary policy response to this crisis.  The actions taken thus far by Congress and the Administration have saved millions of jobs, provided stability and will assist in engineering the great American comeback that is on the horizon as we continue to defeat this virus.

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Protecting the Nation’s Food Supply

According to the House Committee on Agriculture, America’s food supply chain is strained but not broken.  American farmers continue to step up and produce, as they always do, even in the face of this public health emergency, but the COVID-related closure of some beef, poultry and pork processing plants has interrupted demand.  Closure of a single large beef processing plant can result in the loss of over 10 million servings of beef in a single day.  Failure to process livestock could force millions of pounds of meat to disappear from the market, potentially leading to long-term disruptions in our supply chain.  To combat this crisis, to prevent additional “de-population” of beef, pork and poultry supplies and to ensure the adequate availability of food for the American people, it is vital that these processors and packing plants remain open and operating, while preventing the spread of COVID-19 in these facilities.  

That is why I applaud President Trump’s decision this week to issue an Executive Order under the Defense Production Act to protect the nation’s food supply.  The Order classifies meat and poultry processing plants as critical infrastructure that must remain open and provides that the government will provide additional protective gear for employees as well as guidance for them.  To ensure worker safety, these processors will continue to follow the latest guidelines from the Centers for Disease Control and Prevention (CDC) and the Occupational Safety and Health Administration (OSHA).

In addition, the U.S. Department of Agriculture (USDA), using Coronavirus Food Assistance Program (CFAP) funds that I supported as part of the CARES Act, will make available $19 billion to farmers, ranchers and food processors to allow for the purchase and distribution of agricultural products to those in need.  More specifically, the program will provide $16 billion in direct critical support based on actual losses for agricultural producers where prices and market supply chains have been impacted.  The USDA will use the remaining $3 billion to partner with regional and local distributors whose workforce has been impacted by food service closures to purchase fresh produce, dairy, and meat and distribute to food banks, community and faith-based organizations and other non-profit organizations. 

The CARES Act also provided emergency response funding to support agricultural producers who experience economic loss during this pandemic.  Because the gap between losses and relief extends across the entire spectrum of agricultural producers, I joined a number of my colleagues in signing a letter to President Trump urging that relief not be reduced by payment limitations that would harm family farmers of both specialty and row crops, ranchers, livestock and dairy producers.  The letter, which you can read here, asks USDA to use all of the resources at its disposal to maximize the impact combating these unprecedented challenges.

As we begin to reopen our economy, we must ensure America’s food supply remains strong and our workforce remains healthy and I support the Administration’s actions to reinforce our commitment to this great American industry.

Testing, Vaccines & Therapeutics

More than 6.2 million Americans have been tested for COVID-19, with almost 1.1 million confirmed cases of COVID-19 nationwide and a little over 4,700 cases in Kentucky.  During a briefing with the White House Coronavirus Task Force on Monday, President Trump released the “Opening Up America Again Testing Overview and Testing Blueprint,” which is designed to facilitate state development and implementation of the robust testing plans and rapid response programs described in the President’s “Opening Up America Again Guidelines.”  This proposal would establish a partnership between federal, state, local, and tribal governments, along with the private-sector and professional associations, all of which will play important roles in meeting the nation’s testing needs.

Since the beginning of this crisis, the Food and Drug Administration (FDA) has issued 70 emergency authorizations for new tests, including 8 for serological, or antibody, tests.  Last week, I voted to approve an additional $25 billion for additional diagnostic and serological test development and supply distribution as part of the Paycheck Protection Program and Health Care Enhancement Act.  I also recently spoke with Dr. Tammy Beckham, Director of the Office of Infectious Disease Policy at the U.S. Department of Health and Human Services (HHS), who is a key federal official coordinating testing and supplies.  I was able to convey to her the concerns and requests of Sixth District hospitals and medical providers regarding our specific needs for additional kits and supplies for the rapid through-put testing platforms we have been able to procure for central Kentucky.

With respect to immunizations, Pfizer has announced that an experimental vaccine for COVID-19 will begin testing next week.  Additionally, on Wednesday, federal officials also indicated a preliminary study shows Remdesivir, a therapeutic drug developed by Gilead Sciences, has the ability to shorten recovery times for COVID-19 patients by 31%.  This development proves that a drug can stop this virus.  Congress has appropriated significant amount of funding for the development of vaccines and therapeutics including over $4 billion in the emergency supplemental bill and $11 billion in the CARES Act.

Supplies

Since the beginning of this pandemic, I have been working diligently to ensure our hospitals and medical providers have the supplies they need for their frontline healthcare workers to continue to fight COVID-19.  In addition to coordinating three shipments of personal protective equipment (PPE) from the Strategic National Stockpile to central Kentucky area hospitals and provider offices, we also secured from the Centers for Medicaid Services (CMS) guidance that will allow the use of telehealth services in hospitals that will protect healthcare workers and conserve critical PPE.  In addition, I have directly advocated for more help for Kentucky hospital and nursing home workers with Admiral John Polowczyk, who is leading the federal government’s supply chain task force.  Here is where our efforts stand so far:

Through the Trump Administration’s “Project Airbridge,” Kentucky has received the following supplies:

✅103,100 N-95 masks

✅525,900 surgical and procedural masks

✅12,400 eye and face shields

✅746,600 isolation and surgical gowns

✅26,876,800 surgical and exam gloves

In addition, the Federal Emergency Management Agency (FEMA), has also sent Kentucky the following supplies:

✅143,939 N-95 masks

✅342,397 surgical masks 

✅45,990 medical gowns

✅1,869 coveralls

✅56,107 face shields 

✅256,546 gloves

Overall, Project Airbridge has completed 95 flights with an additional 22 scheduled, for a total of approximately 117 flights to bring critical personal protective equipment to the United States.  In addition to this project, FEMA, HHS, and the private sector combined have coordinated the delivery of or are currently shipping: 75 million N95 respirators, 107.7 million surgical masks, 7.2 million face shields, 15.3 million surgical gowns, 814.8 million gloves, 10,153 ventilators, and 8,450 federal medical station beds.

Economic Impact Payment Update

Economic Impact Payments (EIP) from the CARES Act are still being distributed.  If you are receive Social Security Supplemental Income (SSI) or you are a Department of Veterans Affairs (VA) beneficiary and you didn’t file a 2018 or 2019 tax return you must register your dependents information with the Internal Revenue Service (IRS) by Tuesday, May 5, to receive a full economic impact payment on-time.  You can fill out this information using the non-filer tool here. 

If you do not fall into the category above, but you haven’t received your EIP, the IRS and the Treasury Department launched the “Get My Payment” app to allow you to track the status of your payment.  You can click this link to access the app on your desktop, and it is free to download on any tablet or mobile device.  Please also stay vigilant against potential rebate check scams.  The IRS will not call you, text you, email you or contact you on social media asking for personal or bank account information for the purpose of delivering the economic impact payments. 

Keep in mind that these are only one-time payments.  Please note that if you have received your payment, you can’t receive any additional payments.  If you have not received your payment and you are having difficulty with the Get My Payment app, please don’t hesitate to contact my office (859) 219-1366.

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Conclusion

I continue to seek your feedback and ideas as Congress works on a bold agenda to guide America through the COVID-19 pandemic and engineer the great American comeback that is forthcoming.  Finally, you can always reach out to my Lexington office (859) 219-1366 or my Washington office (202) 225-4706 with your input.  If you would like to stay informed on what is happening in Washington, D.C. and around the Sixth Congressional District, again, I encourage you to sign up to receive my e-newsletter by visiting https://barr.house.gov/newsletter-subscription.  If you want to unsubscribe to my e-newsletter, you can do so by clicking here.