Official Name: Dramatic Intervention to Relieve the Economy Act IINickname: DIRE II, DIRE II ACT
Sponsor(s): Senator Tim Westra (D-NJ), Representative Kathleen Nez (D-AZ-7)
House Co-Sponsors(s): Represenative Carrie Simone (D-NY-12), Representative Philip Crawford (D-KY-3), Representative Ibrahim Simpson (D-CA-33), Representative Dan Ziegler (D-CO-1), Representative Julia Piotrowska (D-IL-5), Representative Alexander Santiago (D-FL-27), Representative John Garfield III (D-MI-9), Representative Mac Faulhaber (D-TN-9), Representative Linda Lazare (D-TX-7), Representative Fiona Lowell (D-WI-3), Representative Malcom Douglas (D-NJ-9)
Senate Co-Sponsor(s): Senator Karel Volek (D-NY), Senator Sean Kelly (D-RI), Senator Jillian Dayton (D-VA), Senator Suraj Shah (D-TX), Senator Francine Sullivan (D-AK), Senator Erika Goldman (D-CT), Senator Rafael Navarro (D-CA), Senator Nickolai Dernilski (D-OH), Senator Buster Bunker (D-CA), Senator Agatha Cragin (R-ME), Senator James Moore (D-MI), Senator Levi Murphy (D-MN), Senator Torrie Volker (R-MO) Senator Charlotte Windsor (D-RI)
TITLE I: DIRECT ASSISTANCE FOR AMERICAN WORKERS AND FAMILIES
SUBTITLE A – Unemployment Insurance Provisions
Section 1: EMERGENCY INCREASE IN UNEMPLOYMENT COMPENSATION BENEFITS
(a) FEDERAL-STATE AGREEMENTS.—All States will enter into and participate in an agreement under this section with the Secretary of Labor (in this section referred to as the ‘‘Secretary’’).
(b) PROVISIONS OF AGREEMENT.—
(1) FEDERAL EMERGENCY UNEMPLOYMENT COMPENSATION.—Any agreement under this section shall provide that the State agency of the State will make payments of regular compensation to individuals in amounts and to the extent that they would be determined if the State law of the State were applied, with respect to any week for which the individual is (disregarding this section) otherwise entitled under the State law to receive regular compensation, as if such State law had been modified in a manner such that the amount of regular compensation (including dependents’ allowances) payable for any week shall be equal to—
(A) the amount determined under the State law (before the application of this paragraph), plus
(B) an additional amount of $600 (in this section referred to as ‘Federal Emergency Unemployment Compensation’’).
(2) ALLOWABLE METHODS OF PAYMENT.—Any Federal Emergency Unemployment Compensation provided for in accordance with paragraph (1) shall be payable either—
(A) as an amount which is paid at the same time and in the same manner as any regular compensation otherwise payable for the week involved; or
(B) at the option of the State, by payments which are made separately from, but on the same weekly basis as, any regular compensation otherwise payable.
(c) PAYMENTS TO STATES.—
(1) IN GENERAL.—
(A) FULL REIMBURSEMENT.—There shall be paid to each State which has entered into an agreement under this section an amount equal to 100 percent of—
(i) the total amount of Federal Emergency Unemployment Compensation paid to individuals by the State pursuant to such agreement; and
(ii) any additional administrative expenses incurred by the State by reason of such agreement (as determined by the Secretary).
(B) APPROPRIATION.—There are appropriated from the general fund of the Treasury, without fiscal year limitation, such sums as may be necessary for purposes of this subsection.
(d) EXPIRATION.— All provisions under this section will terminate not later than 6 months after the passage of this act, subject to extension by Congress.
SUBTITLE B - Wage Insurance Provisions
Section 2: ESTABLISHMENT OF EMERGENCY WAGE COMPENSATION BENEFITS
Section 32(b) of subchapter A of chapter 1 of subtitle A of U.S. Code: Title 26, also known as the Internal Revenue Code of 1986, is amended by inserting the following new subsection:
"(m) Federal Emergency Wage Compensation 2020.
"(1) Federal emergency wage compensation benefits are payable for a maximum of 4 months.
(2) ELIGIBILITY. — Any individual eligible for state and/or federal unemployment insurance qualifies for this program.
(3) IN GENERAL.— Wage compensation benefits shall be paid in an amount sufficient to pay to the individual 50% of the difference between current wage and the wage received by the individual at the time of separation from the employer by which the individual was previously employed."
SUBTITLE C – Supplemental Nutrition Assistance Program Expansion
Section 3: INCREASE IN BENEFITS
(a) Maximum Benefit Increase.—In general.--Beginning the first month that begins not less than 25 days after the date of enactment of this Act, the value of benefits determined by operators of the Supplemental Nutrition Assistance Program and consolidated block grants for Puerto Rico and American Samoa shall be calculated using 115 percent of the June 2008 value of the published "thrifty food plan" of 2019.
(b) Funding.—There are appropriated to the Secretary out of funds of the Treasury not otherwise appropriated such sums as are necessary to carry out this section.[/b]
SUBTITLE D – Stimulus Checks
Section 4: RECOVERY REBATES FOR INDIVIDUALS
(a) IN GENERAL.—Subchapter B of chapter 65 of subtitle F of the Internal Revenue Code of 1986 is amended by inserting after section 6427 the following new section:
"SEC. 6428. 2020 RECOVERY REBATES FOR INDIVIDUALS.
‘‘(a) IN GENERAL.—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount equal to the sum of—
‘‘(1) $2,000 ($4,000 in the case of eligible individuals filing a joint return), plus
‘‘(2) an amount equal to the product of $500 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer.
‘‘(b) TREATMENT OF CREDIT.—The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1.
‘‘(c) LIMITATION BASED ON ADJUSTED GROSS INCOME.—The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (e)) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer’s adjusted gross income as exceeds—
‘‘(1) $150,000 in the case of a joint return,
‘‘(2) $112,500 in the case of a head of household, and ‘‘(3) $75,000 in the case of a taxpayer not described in
paragraph (1) or (2).
‘‘(d) ELIGIBLE INDIVIDUAL.—For purposes of this section, the term ‘eligible individual’ means any individual other than—
‘‘(1) any nonresident alien individual,
‘‘(2) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and
‘‘(3) an estate or trust.
TITLE II: HEALTHCARE ASSISTANCE
SUBTITLE A - Medicare Emergency Coverage
Section 5: PUBLIC HEALTH PLAN ESTABLISHMENT
The Social Security Act is amended by adding at the end of the following:
"TITLE XXII - MEDICARE PART E PUBLIC HEALTH PLANS"
"Sec. 2201. Public Health Plans.-
(a) The Secretary shall establish public health plans (to be known as "Medicare part E plans") that are available in the individual market;
(b) Benefits. -
(1) Each Medicare part E plan shall be a qualified health plan within the meaning of section 1301(a) of the Patient Protection and Affordable Care Act that-
(A) Meets all requirements applicable to qualified health plans under subtitle D of title I of the Patient Protection and Affordable Care Act;
(B) Provides coverage of the essential health benefits described in section 1302(b) of the Patient Protection and Affordable Care Act;
(C) Provides coverage of all items and services for which benefits are available under title XVII; and
(D) Provides gold-level coverage described in section 1302(d) of the Patient Protection and Affordable Care Act.
(c) Eligibility and Enrollment.-
(1) The Medicare part E plans shall be offered through the Federal and State Exchanges.
(2) The Department of Health and Human Services shall make available a form on the website "healthcare.gov" to apply for benefits under a Medicare part E plan.
(3) ELIGIBILITY. -
(A) The Medicare part E plans will be available to any individual who is a resident of the United States, as determined by the Secretary, and is either:
(i) Receiving or has received federal unemployment benefits as described by this Act; or
(ii) Has selected a recently dissolved insurance company as their insurer on the "healthcare.gov" form (subject to a DHS background check).
(B) Exclusions. - An individual described in this subparagraph is any individual who is-
(i) Enrolled for benefits under title XVIII;
(ii) Eligible for medical assistance under a State plan under title XIX; or
(iii) Enrolled for child health assistance or pregnancy-related assistance under a State plan under title XIX.
(d) Premiums. - The Secretary shall establish premium rates for the Medicare part E plans that are at a level to sufficiently finance—
(1) The cost of health benefits provided by such plans; and
(2) Administrative costs related to operating the plans.
(e) Providers and Reimbursement Rates.—
(1) The Secretary shall establish a rate schedule for reimbursing types of health care providers furnishing items and services under the Medicare part E plans at rates that are consistent with the negotiations described in paragraph (2) and are necessary to maintain network adequacy.
(2) MANNER OF NEGOTIATION.—The Secretary shall negotiate the rates described in paragraph (1) in a manner that results in payment rates that are not lower, in the aggregate, than rates under title XVIII, and not higher, in the aggregate, than the average rates paid by other health insurance issuers offering health insurance coverage through an Exchange.
(f) Appropriations.—
(1) For purposes of establishing and operating the Medicare part E plans, there is appropriated to the Secretary, out of any funds in the Treasury not otherwise obligated, $50,000,000,000, for fiscal year 2020;
(2) There is appropriated to the Secretary, out of any funds in the Treasury not otherwise obligated, such sums as may be necessary, based on projected enrollment in the Medicare part E plans in the first plan year in which such plans are offered, to provide reserves for the purpose of paying claims."
SUBTITLE B - Existing Public Health Services
Section 6: EMERGENCY INCREASE IN INDIAN HEALTH SERVICE APPROPRIATIONS
(a) Findings.—
(1) The Indian Health Service has been chronically underfunded since its establishment in 1955.
(2) American Indians face higher rates of diabetes, alcohol dependency, liver disease, and mental illness compared to other Americans of all races.
(3) American Indians have lower life expectancy compared to other Americans of all races.
(4) The Indian Health Service is currently facing an employment crisis, with as many as 50% or more positions remaining unfilled for extended lengths of time in various service areas.
(5) As the Recession of 2020 continues, American Indians across the United States are at high risk of losing employment-based health insurance.
(b) APPROPRIATIONS.—
(1) For purposes of increasing funding for the Indian Health Service and improving healthcare outcomes for its clients during the Recession of 2020, there is appropriated to the Indian Health Service, out of any funds in the Treasury not otherwise obligated, $6,524,800,000, for the fiscal year 2020 on top of what has already been appropriated.
(2) Of the $6,524,800,000 appropriated to the Indian Health Service in this bill, the Director of the Indian Health Service shall be obligated to distribute 50% of this funding to the individual healthcare systems run by Federally Recognized Tribes.
(3) There is appropriated to the Director of the Indian Health Service, out of any funds in the Treasury not otherwise obligated, such sums as may be necessary, based on projected increased cliental at Indian Health Service locations and projected enrollment in the Purchased/Referred Care programs run by the Indian Health Service.
Section 7: EMERGENCY INCREASE IN THE VETERANS HEALTH ADMINISTRATION APPROPRIATIONS
(a) Findings.—
(1) The Veterans Healthcare Administration has been unfunded for some time now.
(2) Veterans, due to their service to the United States, face a number of health-related problems that are otherwise relatively rare within the general population of the United States, ranging from PTSD to the after-effects of the loss of one or more limbs.
(3) As we fund and expand access to healthcare for many Americans as we prepare for the many effects of the Recession of 2020 to unfold, we must also take to the time to fund and expand access to healthcare for the many Americans who were willing to give their lives in service to our nation.
(b) APPROPRIATIONS.—
(1) For the purposes of increasing funding for the Veterans Health Administration and improving healthcare outcomes for its clients during the Recession of 2020, there is appropriated to the Veterans Health Administration, out of any funds in the Treasury not otherwise obligated, $6,800,000,000, for the fiscal year 2020 on top of what has already been appropriated.
(2) There is appropriated to the Under Secretary of Veterans Affairs for Health, out of any funds in the Treasury not otherwise obligated, such sums as may be necessary, based on projected increased cliental at Veterans Healthcare Administration locations and due to projected increases in Veterans taking advantage of their benefits to receive healthcare at Veterans Healthcare Administration locations.
TITLE III: HOUSING ASSISTANCE
SUBTITLE A - Eviction Moratorium
Section 8: AMENDMENT TO U.S. CODE
In Title 15 of the US Code, the following shall be inserted as Section 9001, as part of Chapter 116 titled 'FEDERAL EVICTION PROHIBITION ACT';
"
During the 90-day period beginning on the enactment of this Act, the lessor of a covered dwelling may not:
(a) make, or cause to be made, any filing with the court of jurisdiction to initiate a legal action to recover possession of the covered dwelling from the tenant for nonpayment of rent or other fees or charges; or
(b) charge fees, penalties, or other charges to the tenant related to such nonpayment of rent; or
(c) require the tenant to vacate the covered dwelling unit before the date that is 30 days after the date on which the lessor provides the tenant with a notice to vacate; or
(d) issue a notice to vacate under subsection (c) until after the expiration of the 90-day period. "
Section 9: DEFINITIONS
For the purposes of this act;
(a) The term "lessor" shall mean any person who leases or lets a property to another, that another person being defined as a "tenant" for the purposes of this Act.
(b) The term "covered dwelling" shall mean any dwelling that is occupied by a tenant, pursuant to a residential lease or otherwise, that is on or in a covered property ("covered property" meaning any property that participates in a covered housing program (as defined in section 12491(a) of title 34 of the US Code) or the rural housing voucher program under section 1490r of title 42 of the US Code, or that has a federally backed mortgage loan or federally backed multifamily mortgage loan).
Section 10: POSSIBILITY OF EXTENSION OF PERIOD
Via Act of Congress with a majority vote, pursuant to Article I, Section 1 of the Constitution of the United States, Congress may extend the 90-day period provided for in Section 1 of this Act with regard to the prohibition of evictions, if and when it deems necessary.
SUBTITLE B - Foreclosure Prevention
Section 11: MORTGAGE RELIEF
(a) Forbearance and foreclosure moratorium for covered mortgage loans. -
(1) Except with respect to a vacant or abandoned property, a servicer of a Federally backed mortgage loan may not initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale for not less than the 30-day period beginning after the enactment of this Act.
(2) Any borrower whose covered mortgage loan became 60 days delinquent between March 10th, 2020, and the date of enactment of this paragraph, and who has not already received a forbearance under this subtitle, shall automatically be granted a 60-day forbearance that begins on the date of enactment of this paragraph, provided that a borrower shall not be considered delinquent for purposes of this paragraph while making timely payments or otherwise performing under a trial modification or other loss mitigation agreement; and
(3) any borrower whose covered mortgage loan becomes 60 days delinquent between the date of enactment of this paragraph and the end of the 30 day covered period, and who has not already received a forbearance under this subtitle, shall automatically be granted a 30-day forbearance that begins on the 30th day of delinquency, provided that a borrower shall not be considered delinquent for purposes of this paragraph while making timely payments or otherwise performing under a trial modification or other loss mitigation agreement.
(b) The mortgagee shall not request due and payable status from the Secretary of Housing and Urban Development nor initiate foreclosure during the 90-day period described under section 6, which shall be considered a forbearance period.
SUBTITLE C - Rental Relief
Section 12: EMERGENCY RENTAL ASSISTANCE
(a) There is authorized to be appropriated to the Secretary of Housing and Urban Development (referred to in this section as the Secretary) $60,000,000,000 for an additional amount for grants under the Emergency Solutions Grants program under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act, to remain available until expended, to be used for providing short- or medium-term assistance with rent and rent-related costs (including tenant-paid utility costs, utility- and rent-arrears, fees charged for those arrears, and security and utility deposits).
(b) Definition of at risk of homelessness.- Notwithstanding section 401(1) of the McKinney-Vento Homeless Assistance Act, for purposes of assistance made available with amounts made available pursuant to subsection (a), the term at risk of homelessness means, with respect to an individual or family, that the individual or family—
(1) has an income below 80 percent of the median income for the area as determined by the Secretary; and
(2) has an inability to attain or maintain housing stability or has insufficient resources to pay for rent or utilities due to financial hardships.
(c) Each State recipient of such amounts shall use—
(1) not less than 40 percent of the amounts received only for providing assistance for individuals or families experiencing homelessness, or for persons or families at risk of homelessness who have incomes not exceeding 30 percent of the median income for the area as determined by the Secretary;
(2) not less than 70 percent of the amounts received only for providing assistance for individuals or families experiencing homelessness, or for persons or families at risk of homelessness who have incomes not exceeding 50 percent of the median income for the area as determined by the Secretary; and
(3) the remainder of the amounts received only for providing assistance to individuals or families experiencing homelessness, or for persons or families at risk of homelessness who have incomes not exceeding 80 percent of the median income for the area as determined by the Secretary, but such recipient may establish a higher percentage limit for purposes of subsection (b)(1), which shall not in any case exceed 120 percent of the area median income, if the recipient states that it will serve such population in its plan.
TITLE IV: ASSISTANCE FOR AMERICAN BUSINESSES
SUBTITLE A – Regarding the Small Business Disaster Loan as Established by the American Assistance and Relief Act of 2020
Section 13: AMENDMENT TO THE AMERICAN ASSISTANCE AND RELIEF ACT OF 2020
(a) The American Assistance and Relief Act of 2020 shall be amended by inserting the following after Section 3D:
"Section 3E: The amount of wages (excluding any benefits) provided by an employer to any covered employee or covered former employee of the employer which may be taken into account to determine a loan amount under this subsection shall not exceed $90,000 in annual salary (excluding any benefits) per employee.
Section 3F: If a covered employee or covered former employee of an employer receiving a grant under the Program quits or is terminated for cause during a month for which the employer receives grant funds, the employer shall be required to repay to the Department of Treasury, on a no-interest basis and by the date that is not later than two years after the date on which such employee quits or is terminated, the pro rata grant amount received with respect to the wages of such employee.
Section 3G: The Administrator shall terminate the Program on the date on which the seasonally adjusted unemployment rate has remained below seven percent, as measured by the Bureau of Labor Statistics, for four consecutive months. The Administrator shall publish in the Federal Register notice of potential termination of the Program on any date on which the seasonally adjusted unemployment rate has remained below seven percent, as measured by the Bureau of Labor Statistics, for two consecutive months.
Section 3H: An employer receiving a loan under the Program may not purchase an equity interest of the employer on a national securities exchange. An employer receiving a loan under the Program may not use funds awarded under the Program to make any distribution of funds, including stock dividends, to shareholders or bondholders of the employer. An employer receiving a loan under the Program may not award an executive bonus to an employee of the employer during the period beginning on the date on which the employer receives an initial grant under the Program and ending on the date on which the Secretary terminates the Program.
Section 3I: If an employer receiving a grant under the Program employs a chief executive officer, during the period beginning on the date on which the employer receives an initial grant under the Program and ending on the date on which the Secretary terminates the Program, the employer may not provide to the chief executive officer annual wages in excess of the amount that is for an employer that is not a new employer, 50 times the median of the wages provided by the employer to employees of the employer in 2019; or for a new employer, 50 times the annual median of wages provided by the employer to employees of the employer (calculated by determining the median amount of monthly wages paid during the months for which the new employer has been in existence and multiplying the amount by 12); and in the case of termination of employment with the employer, severance pay or other benefits relating to the termination in excess of twice the amount of for an employer that is not a new employer, wages provided by the employer to the chief executive officer in 2019; or for a new employer, the projected annual median of wages provided by the employer to the chief executive officer (calculated by determining the median amount of monthly wages paid during the months for which the new employer has been in existence and multiplying the amount by 12).
Section 3J: During the period beginning on the date on which an employer receives an initial loan under the Program and ending on the date that is 90 days after the date on which the Secretary terminates the Program the employer shall make a good-faith effort to rehire and maintain covered former employees who were employed by the employer on or prior to March 1, 2020; the employer shall compensate the covered former employees rehired and maintained under paragraph at a level that is not less than the level of wages received by the covered former employees prior to March 1, 2020; the employer may not abrogate any collective bargaining agreement entered into by the employer and the authorized representatives of the employees of the employer and in force on March 1, 2020; the employer shall remain neutral in any union organizing effort; and the employer shall refrain from conducting involuntary furloughs or reducing pay rates of the employees of the employer."
Section 3K: Payment Program for Natural Resource Harvesting and Hauling Businesses:
a) The term “eligible entity” means any timber & wood, iron, copper, salt, and rare earth metals harvesting business or hauling business that harvested or hauled unrefined products in calendar year 2020.
b) The term “gross revenue” means the gross revenue generated by an eligible entity from harvesting or hauling services within the normal range of operation of the eligible entity, as determined by the Secretary of Agriculture otherwise referred to as Secretary.
c) The Secretary shall make payments in accordance with this section to eligible entities that, as a result of the economic downturn, experienced a loss of not less than 10 percent in gross revenue during the period beginning on January 1, 2020, and ending on September 30, 2020, as compared to the gross revenue of the eligible entity during the same period in 2019.
d) The amount of a payment made to an eligible entity under paragraph (c) shall be equal to 10 percent of the gross revenue of the eligible entity during the period beginning on January 1, 2019, and ending on September 30, 2020. The Secretary shall only make a payment under subsection (c) to an eligible entity that certifies to the Secretary that the payment will be used only for operating expenses or employee retention, including continuation of benefits.
e) Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the relevant committee of the House of Representatives and of the Senate a report describing the payments made under this section, including the identity of each recipient of a payment; and the amount of each payment provided to each recipient described in paragraph (c) and (d).
f) Except as otherwise provided in this section, not later than 30 days after the date of enactment of this Act, the Secretary shall prescribe such regulations as are necessary to carry out this section. The promulgation of regulations under, and administration of, this section shall be made without regard to the notice and comment provisions of section 553 of title 5, United States Code; and chapter 35 of title 44, United States Code.
g) There are appropriated, out of any amounts in the Treasury not otherwise appropriated, such sums as are necessary to make payments to eligible entities under this section.
SUBTITLE B – Debt Stabilization Provisions
Section 16: DEBT STABILIZATION FUND
(a) Establishment and duties.—There is authorized, within the Department of Treasury, the creation of a fund operated by the Secretary of the Treasury to:
(1) Enter into agreements with local governments, tribal governments, and businesses to cover debt service and losses in revenue;
2) such agreements will be fostered in the manner of a loan with a maximum interest rate of 1.5 percent;
3) borrowers will have to repay loan balance by a maximum maturity date of 5 years after entrance into said agreement; and
4) borrowers may opt to enter into a shorter maturity loan of 2 years.
(b) Eligibility.—All borrowers in a Debt Stabilization Agreement must be either:
(1) A state, local, or tribal government with debt obligations in excess of 25% of local output; or
2) A business with:
(A) A debt-to-equity ratio in excess of 2.5:1;
(B) Less than $2 billion in revenue; and
(C) Fewer than 10,000 employees.
(c) Appropriations.— For purposes of establishing and operating the Debt Stabilization Fund, there is appropriated to the Secretary, out of any funds in the Treasury not otherwise obligated, $50,000,000,000, for fiscal year 2020.
TITLE IV: ON THE AMERICAN ASSISTANCE AND RELIEF ACT OF 2020
Section 17: ON THE AMERICAN ASSISTANCE AND RELIEF ACT OF 2020
(a) Nothing in this bill shall be seen as overriding the American Assistance and Relief Act of 2020 as written in law unless otherwise amended.
This bill is then honorably presented to the House of Representatives for consideration in order to tackle the Recession of 2020 to improve the United States Law and is backed by Kathleen Nez and Tim Westra on May 7, 2020.