Monday Morning Memo – July 13

Broader issues—of statewide interest and impact—are under consideration as you read this. Since July 1, lawmakers have introduced 178 bills (of various levels of ambition) related to public health, consumer protection, law enforcement, and local governments. Committee meetings are scheduled this week in anticipation of floor votes next week.

Fiscal issues—both relating to the state budget and any relief for business, workers, and the unemployed—are second only to public health these days but it is unlikely any of these issues will be touched, much less addressed, by the legislature until after the federal government acts (or chooses not to act) on further COVID relief.

Next week, Congress will also be back in Washington D.C. where they face increasing pressure to enact another aid package as coronavirus cases spike across the Sun Belt, economic re-openings sputter, questions remain about reopening schools in the fall, and supplemental unemployment benefits end in three weeks. The White House is pushing for legislation to be passed by the first week of August, but Senate Majority Leader Mitch McConnell (R-Ky.) and House Speaker Nancy Pelosi (D-Calif.) are still nowhere near an agreement on what should be included in that legislation or how much it should cost.

Senate lawmakers and staffers are working behind the scenes on legislation that can pass with bipartisan support. Democrats are pressing for a bold bill, similar to a $3 trillion package passed by the House in mid-May. The White House and Senator Mitch McConnell said they want to cap the next, and possibly the last, coronavirus aid legislation at $1 trillion—legislation that  McConnell said would focus on liability reform, reopening schools, jobs growth, and healthcare. As reliably Republican states see their coronavirus cases—and their costs and unemployment rates—rise, the pressure on McConnell and the Senate Majority rise as well.

One of the biggest sticking points is enhanced unemployment benefits, as the  Federal Pandemic Unemployment Compensation program passed under the CARES Act is nearing its expiration date of July 31. While most Democrats on Capitol Hill see an extension of the program as a necessary response to June’s 11.1% national unemployment rate, Republicans view enhancing benefits as a strong disincentive for people to return to work. Democratic House Speaker Nancy Pelosi has stated her confidence that lawmakers can find a compromise on extending jobless benefits and unemployment insurance for Americans struggling amid coronavirus pandemic shutdowns. “We have to find a compromise because we must extend it,” Pelosi said. Republican lawmakers are not so sure.

Nine of New York’s 10 regions are in the fourth and “final” phase of the reopening process; New York City, the last region to reopen, is expected to enter Phase 4 as early as next Monday, July 20, if the coronavirus infection rate stays under control. But not all industries are allowed to reopen; though indoor malls were finally given the green light to open in regions that are in Phase 4, provided they install filtration devices with a minimum rating of MERV-11 (MERV-13 required if functionally possible); gyms, casinos, racinos, and theaters have still not been included in reopening plans.

Governor Cuomo promised an announcement in August regarding schools reopening in the fall based on a comprehensive review of local conditions and plans from local school districts. Cuomo blasted President Donald Trump for pressuring state officials to reopen schools this fall, saying, “school re-openings are a state decision. Period. The president does not have any authority to open schools. We will open the schools if it is safe to open the schools.” Although dozens of states are struggling to contain a resurgence in COVID-19 cases, the President threatened to withhold federal funding from schools that do not resume in-person classes this fall. Trump likely does not have the ability to withhold federal aid, which makes up less than 10% of the funding for most local districts. 

New York’s travel quarantine list has gotten much longer as cases continue to rise across the nation, currently including 19: Alabama, Arizona, Arkansas, California, Delaware, Florida, Georgia, Iowa, Idaho, Kansas, Louisiana, Mississippi, Nevada, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, and Utah. The order, which requires anyone who has traveled for more than 24 hours to a state with a high rate of new coronavirus cases to quarantine for 14 days,  has created some tricky situations for employers and workers to navigate, like paid sick leave requirements through federal laws and employees with essential travel requirements to other states.

— Jack O’Donnell