Washington Update Special Edition – March 23
In the email attachments you will find more detailed text on the House Democrats’ $2.5 trillion
stimulus proposal that was unveiled this afternoon. The Labor-H sections impacting education
and labor provisions remain unchanged. A section by section summary of the bill is also
The House bill would provide a direct payment up to $2,000/month for most adults and
$1000/month for each of their children for as long as the crisis and potential recession may last.
It also includes stronger paid and sick leave provisions for workers regardless of the size of the
employer for which they work, in contrast to the Senate bill which only applies to employers
with less than 500 employees with DOL discretion to eliminate such requirements for businesses
with less than 50 workers.
Like the Senate bill, it would create a Federal Pandemic Unemployment Compensation fund of
an additional $600 per week on top of a worker’s state UI allocation, for any worker affected by
the outbreak who is eligible for unemployment compensation benefits.
Self-employed workers, individuals whose job contracts were canceled due to the virus, and new
entrants to the job market would also be eligible for unemployment insurance.
For DOL programs, the bill provides an additional $1.4 billion:
- WIOA – $960 million
- Adult – $2212 million
- Youth +$227 million
- DW +261 million
- NEG +100 million
- Employment Service +$150 million
- SCSEP +$120 million
- Strengthening Community College Grants +$150 million
- VETS +$15 million
It also includes a new title for expanded UI:
- Federally funded $600 weekly additional UI payment, including for Gig workers and those about to start work;
- Expanded work sharing to reduce the number of laid off employees;
- 13 weeks of EB;
- $300 per week for recent grads or new entrants to the workforce;
- Nonprofit or governmental groups who are “reimbursable employers:” would have 50% of their share of UI payments to laid off workers provided by the federal government.
Department of Education- $39.8 billion increase:
- $30 billion for a State Fiscal Stabilization Fund for grants to States to support statewide and local funding for elementary and secondary schools and public postsecondary institutions
- $8 billion for Institutional Aid for impacted institutions of higher education (IHE)
In addition, there is a new Education Relief program included which would:
- Require the Secretary of Education to waive the match requirement for IHE’s under the campus-based aid programs, including the Supplemental Educational Opportunity Grants (SEOG) and the Federal-Work Study (FWS) program;
- Allow SEOG funding to be utilized for emergency grants to students;
- IHE’s could continue to make FWS payments to affected work-study students for up to one academic year to students who cannot fulfill their FWS job due to coronavirus;
- Provide significantly more flexibility with student loans:
- Require ED to make payments on behalf of FFEL, Perkins and direct loans borrowers for each month during the national emergency;
- Every borrower would receive at least $10,000 in benefits.
To read the entire update, please click the links below.