House Democrats led by Speaker Nancy Pelosi (D-Calif.) have released $3 trillion 1,800-page legislation packed with a wishlist of partisan liberal priorities.
The legislation, known as the “Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act,” is being rushed through Congress and has no chance of being approved by the Senate and signed by President Trump.
This legislation would spend trillions of dollars on liberal priorities that are not directly related to the COVID-19 pandemic.
This is the wrong approach for Congress to address the crisis.
ATR Urges a NO vote.
Some key provisions in the bill include:
- Extends the additional $600 unemployment benefit through Q1 of 2021. This benefit is in addition to existing unemployment benefits, creating an incentive for Americans to choose welfare over work.
- Suspends the $10,000 cap on deducting state and local taxes, a proposal that almost exclusively benefits wealthy blue states and does almost nothing to help the middle class.
- Provides almost $1 trillion in funding for states, localities, territories, and tribes.
- Expands the refundability of several tax credits, using the tax code to provide direct cash subsidies.
- Retroactively increases taxes on struggling businesses by denying net operating loss carrybacks before 2019.
- Expands Obamacare by creating a special enrollment period.
- Provides $10,000 in student loan forgiveness to public and private loans.
- Provides $25 billion in funding to the United States Postal Service without structural reforms and would force Treasury to lend $10 billion to the Postal Service without appropriate conditions sought by the Treasury Secretary.
- Provides $15 billion for state-level infrastructure spending. Despite claiming to replace reduced state revenues caused by COVID-19, the funds would be distributed through a funding formula based upon factors as they existed in 2007 while ignoring actual state revenues as they currently exist.
- Bails out numerous Department of Housing and Urban Development programs and public housing agencies at the state and local level and includes a 120-day moratorium on evictions for nonpayment of rent for a one-year period beginning on the date of enactment of the HEROES Act. Applies to all dwelling units, regardless of whether they are subsidized or backed by a federal mortgage program, and regardless of whether a signed lease is in place.
- Suppresses all negative information for credit reporting and bans new credit scoring models during COVID-19 and major disaster periods. This will punish borrowers who most need access to credit during the health emergency.