Detroit Regional Chamber urges Congress to enact COVID relief

The Detroit Regional Chamber wrote late Tuesday to Michigan's congressional delegation urging lawmakers "in the strongest possible manner" to adopt another coronavirus relief package that includes aid for struggling businesses.

"The situation is urgent and can’t wait until the new Congress and administration are seated in 2021," wrote Sandy K. Baruah, the chamber's president and CEO. 

He said the "alarming spike" in COVID-19 cases and deaths is causing businesses to "suffer at an unprecedented scale due to either actions deemed necessary by governments to protect public health and by individuals self-selecting to curtail activities to guard their family’s safety."

Michigan on Tuesday surpassed 10,000 deaths linked to COVID-19 since the virus was first detected in March, and a surge in infections in the last month has raised staffing and capacity concerns at area hospitals.

Baruah, a former administrator of the U.S. Small Business Administration under President George W. Bush, urged action by lawmakers so that as many businesses as possible can survive the crisis to keep the economy going until the COVID vaccine becomes available in 2021.

The letter comes as bipartisan negotiations continue on Capitol Hill over a potential deal on COVID relief, though lawmakers are hung up on provisions over stimulus payments for families and liability protections for businesses. It's unclear whether party leaders will come to an agreement before recessing for the Christmas holiday. 

The Detroit chamber said Congress should prioritize a package that includes an extension of the Paycheck Protection Program to help ailing businesses and specifically small businesses and a legal liability shield for businesses to protect from COVID-related lawsuits. 

The chamber also wants to see enhanced unemployment assistance for workers and direct aid for state governments, in part so they may effectively distribute vaccines next year, Baruah said. 

Several Michigan delegation members support a $908 billion plan that was proposed last week by a bipartisan group of senators and House members, including the Problem Solvers Caucus. 

That proposal included $160 billion for state and local governments, $288 billion in PPP loans for hard-hit businesses and restaurants, and $180 billion to boost unemployment insurance by $300 a week for 18 weeks, retroactive to Dec. 1. It did not include stimulus payments for families.

The bipartisan proposal included $45 billion for airlines, airports, transit and Amtrak, as well as $82 billion for education, $25 billion for rental housing aid and $26 billion for nutrition assistance. It sets aside $16 billion for vaccine development and distribution and contact tracing.

Senate Majority Leader Mitch McConnell on Tuesday suggested dropping from consideration the two areas where lawmakers can't seem to agree — liability protection and state and local aid.

The Trump administration late Tuesday sent House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer a proposal for a $916 billion COVID relief deal that included $160 billion for state and local aid, $320 billion for business aid, $150 billion for direct stimulus checks and $16 billion for vaccines and virus testing. 

But Schumer and Pelosi in response indicated a preference to use the bipartisan proposal as the basis for a deal, saying it was "unacceptable" the White House proposal cuts the unemployment insurance in the bipartisan framework from $180 billion to $40 billion.  

"The President’s proposal must not be allowed to obstruct the bipartisan Congressional talks that are underway," Pelosi and Schumer said in a statement.

"Members of the House and Senate have been engaged in good-faith negotiations and continue to make progress. The bipartisan talks are the best hope for a bipartisan solution."

mburke@detroitnews.com