Coronavirus Federal Response Update From Congressman Andy Barr 

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Economy Recovery, Reopening America and Liability Reform

The American economy showed tremendous resilience, adding 2.5 million jobs last month, exceeding employment expectations for May by 10 million.  As a result, the unemployment rate fell by nearly two percent.  According to the Bureau of Labor Statistics and the White House Council of Economic Advisors, hours are increasing for workers and nearly 75 percent of small businesses have reopened. 

This is all powerful evidence of the labor market comeback that is possible as more states begin to reopen.  But in order to get back to pre-pandemic levels of economic growth, more states must ease restrictions and safely reopen, allowing all Americans to return to work. 

Some states that avoided large rates of infection during the early days of the COVID-19 pandemic are now experiencing a rise in hos­pi­tal­iza­tions, caus­ing some officials to warn that easing restrictions will result in a second wave of infections.  

Obviously, a moderate rise in infections and hospitalizations should be expected as total lockdowns end and more social interaction picks up.  That’s why basic public health habits, such as hand hygiene, social distancing and masking, continue to be important and helpful to reopening the economy.

But a return to comprehensive government-mandated shutdowns or further delays in reopening efforts is not only unnecessary, it would be a disaster.  We simply cannot shutdown our country again. 

That’s why I’ve voted for and will continue to support funding to build resiliency within our health care system, making sure our doctors, nurses and frontline healthcare workers have the personal protective equipment (PPE) they need, to continue the immense progress on the availability of both diagnostic and antibody testing, and to advance the incredible public-private partnership in support of an unprecedented research and development enterprise that will produce therapies, treatments and, ultimately, an effective vaccine. 

This progress is a credit to the bipartisan efforts of this Administration and Congress, which together, along with Governors and local officials, have accomplished the goal of the federal guidelines put in place over the last three-and-a-half months to “slow the spread.”

Now that we have accomplished that goal, our health care system is more prepared, and as we move toward ubiquitous testing, therapies and a vaccine, our next goal should be focused like a laser on getting every able-bodied, work-capable American back to work. 

Just four short months ago our economy was the strongest it has ever been, with unemployment rates under four percent and millions of jobs available.  Now, after avoiding the expectation of 20 percent unemployment, our nation is poised to recover faster than ever before. 

Millions of workers are being rehired and small businesses are recovering, thanks in large part to the Paycheck Protection Program, which has provided crucial funding to keep businesses open and employees on the payroll. 

Now we must keep it going.  June can provide even better news for the millions who have been displaced due to the COVID-19 pandemic and their families.  But for that to happen, states need to continue the reopening process and make it possible to get our economy back to where it needs to be.  

In addition, Congress must include liability protections in any additional legislation to ensure hospitals, doctors, businesses, schools, colleges and universities, as well as nonprofits, have confidence to resume operations without fear of costly litigation.  

Our heroic health care workers shouldn’t have to deal with lawsuits just because of delays in treatment for patients with symptoms un-related to COVID-19, just because of workforce shortages that forced physicians to provide care outside of their general practice area, just because of shortages of equipment resulting in providers having to ration care, or just because of delayed or inaccurate diagnoses due to inadequate testing supplies.

Likewise, employers who comply with federally-mandated safety guidelines should be immune from junk lawsuits.  Just because someone is diagnosed with the virus, doesn’t mean a trial lawyer should be able to file a lawsuit against a business.  Such protections would not shield employers from claims of gross negligence and reckless or intentional misconduct, nor would they replace or preempt the state-based tort system.  But they would limit liability in time and scope to deal with a COVID-19 related reopening without rewarding bad actors. 

Federal Medical Center Outbreak 

Over the past few weeks, I have been working diligently to assist in containing the COVID-19 outbreak at the Federal Medical Center (FMC) prison Lexington.  Recently, I discussed the FMC outbreak with Lexington Herald-Leader reporter Beth Musgrave, and you can read her reporting here.  To summarize my efforts, I held a call with FMC Warden Frank Quintana and encouraged communication between FMC, the city of Lexington and the University of Kentucky Hospital, which is treating some prisoners who have contracted the virus.  I also held a call with the U.S. Bureau of Prisons (BOP) Mid-Atlantic Regional Director Ralph Maldanado regarding the safety of the prison’s staff and inmates.  My office has been working to ensure that FMC Lexington receives the support they need from the BOP.  

To that end, FMC Lexington has received PPE from the BOP to protect the corrections officers and staff.  The prison also received testing platforms to test inmates.  The FMC has not made testing available to corrections officers and staff but testing in the community, including at the Fayette County Health Department is available to staff.  I have recommended to the FMC leadership and BOP that testing be expanded for prison staff to protect against spreading the virus outside the prison into our communities but have been advised by the Department of Justice (DOJ) that they cannot mandate testing because of the Health Insurance Portability and Accountability Act (HIPPA) and other privacy laws.  Nevertheless, because of our intervention, the BOP and FMC leadership have committed to encouraging the corrections officers and staff to seek and obtain testing for their health and safety, and for the health and safety of their families and the community.  I stand ready to assist FMC and the BOP going forward in any way necessary. 

Protect our Children from COVID-19 Act

Recently, I co-sponsored the Protect Our Children From COVID-19 Act, legislation that would require the U.S. Department of Health and Human Services (HHS) to conduct a study to identify best practices and safely send our kids back to school.  As our economy begins to reopen, it is critical that work is done to ensure we are ready to send our kids back to school in September, or perhaps even earlier.  The longer we wait, the more risk we take in setting our children back in their education.  There are other consequences for children not attending school, and some of the most concerning of these include:  

  • Children who rely on school provided meals not receiving the nutrition and food they need;
  • Rural areas lacking broadband access struggling to or not being able to conduct tele-classes at all; and
  • Child abuse going undetected, because children are not seeing their teachers in person, who are mandated reporters

Preliminary research by Johns Hopkins University shows that the severity of COVID-19 in children is less than that of adults.  This is good news, but as this study states—more robust research is necessary and that is what this legislation would provide.  I will continue to provide updates on the status of this initiative. 

Main Street Lending Program

This week, the Federal Reserve Board announced updated terms to its Main Street Lending Program (MSLP), which Congress authorized through the Coronavirus Aid, Relief, and Economic Securities (CARES) Act, to provide assistance to small and medium-sized companies. The Federal Reserve will expand the universe of businesses eligible to participate in the program to include a greater number of firms and provide more favorable terms for borrowers. Specifically, the Federal Reserve reduced the minimum loan amount from $500,000 to $250,000 and increased the term of the loan from four years to five, among other changes.

These low-interest loans will be available through commercial banks for an amount based on the company’s 2019 earnings. The MSLP is expected to officially launch in the coming days. More information from the Federal Reserve and the term sheets for the MSLP may be found here.

As a senior member of the House Financial Services Committee, which has jurisdiction over the Federal Reserve, I have been in regular communication with the Federal Reserve regarding the terms of the MSLP and its potential positive impact for small and mid-size businesses in Kentucky.

Appreciation

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. You can always reach out to my Lexington office (859) 219-1366 or my Washington office (202) 225-4706 with your input. Lastly, 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.