COVID-19 Policy Update - Summary of Key Policies-HEALS Act vs. HEROES Act - Akin Gump Strauss Hauer & Feld LLP

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COVID-19 Policy Update

Summary of Key Policies—HEALS Act vs.
HEROES Act
July 28, 2020

Health Provisions
                                            Senate                       House
                                            HEALS Act                    HEROES Act
 COVID-19                                   Requires the Department      Requires the Centers for
 Testing/Contact Tracing                    of Health and Human          Disease Control and
                                            Services (HHS) to publish    Prevention (CDC) to
                                            procedures and policies to   create a new “nationwide
                                            expand access to samples     evidence-based system”
                                            to support the               for COVID-19 testing,
                                            development of COVID-19      contact tracing,
                                            diagnostics, therapeutics    surveillance and
                                            and vaccines. No national    mitigation. Grants would
                                            testing/contact tracing      be allocated to provide a
                                            program is required.         minimum level of funding
                                                                         for each state, with
                                                                         additional funds flowing to
                                                                         high-impact areas.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                              1
Senate                         House
                                            HEALS Act                      HEROES Act
 Telehealth                                 Allows the Centers for         Authorizes the Department
                                            Medicare and Medicaid          of Veterans Affairs to
                                            Services (CMS) to extend       make telehealth
                                            Medicare telehealth            capabilities available to
                                            flexibilities through          homeless veterans. No
                                            December 31, 2021 or the       Medicare telehealth
                                            end of the public health       policies.
                                            emergency (PHE),
                                            whichever is later. Extends
                                            telehealth flexibilities for
                                            federally qualified health
                                            centers (FQHCs) and rural
                                            health clinics (RHCs) for
                                            five years beyond the end
                                            of the PHE.
 Medicare                                   Provides up to 270 days        Reduces the interest rate
 Advance/Accelerated                        before offsetting claims       for providers to one
 Payments                                   and 18 months for Part A       percent, limits recoupment
                                            providers and at least 14      to no more than 25
                                            months for Part B              percent of Medicare
                                            providers and suppliers to     reimbursement claims,
                                            pay the full balance and       and provides one full year
                                            before interest accrues.       before offsetting claims
                                            No change to the interest      and two years for
                                            rate. Allows employers to      providers to pay the full
                                            offer telehealth as an         balance.
                                            excepted benefit to
                                            employees who are not
                                            full-time or do not qualify
                                            for their employer’s
                                            coverage.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                               2
Senate                          House
                                            HEALS Act                       HEROES Act
 Nursing Homes                              Authorizes the creation of      Directs HHS to allocate
                                            federal nursing home            funds to states to create
                                            strike teams to supplement      nursing home “strike
                                            state efforts.                  teams.”
                                            Requires the Secretary to:      Requires HHS to provide
                                            develop online training         additional assistance
                                            courses for nursing             through Medicare Quality
                                            facilities, survey agencies,    Improvement
                                            the long-term care              Organizations (QIOs) to
                                            ombudsman in each state         facilities struggling with
                                            and other individuals;          infection control.
                                            enhance diagnostic
                                            testing; and develop
                                            training materials for
                                            personnel of nursing
                                            homes.
                                            Requires the Secretary to
                                            provide governors with a
                                            list of nursing facilities in
                                            which the reported cases
                                            of COVID-19 increased
                                            during the previous week.
                                            Authorizes the Secretary
                                            to create a website and
                                            seek input on developing
                                            training courses and best
                                            practices in infection
                                            control and prevention,
                                            including cohorting,
                                            strategies and use of
                                            telehealth to mitigate the
                                            transmission of COVID-19.
                                            Authorizes HHS to work
                                            with the Elder Justice
                                            Coordinating Council to
                                            promote testing and
                                            infection control in nursing
                                            facilities.
 Medicare Part B                            Maintains 2021 Medicare         No applicable language.
                                            Part B premiums and
                                            deductible at 2020 levels.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                3
Senate                    House
                                            HEALS Act                 HEROES Act
 Consolidated Omnibus                       No applicable language.   Provides full premium
 Budget Reconciliation                                                subsidies, through January
 Act (COBRA)                                                          2021, to allow workers to
                                                                      maintain their employer-
                                                                      sponsored coverage if
                                                                      they are eligible for
                                                                      COBRA due to a layoff or
                                                                      reduction in hours, and for
                                                                      workers who have been
                                                                      furloughed but are still
                                                                      active in their employer-
                                                                      sponsored plan.
 Affordable Care Act                        No applicable language.   Provides a two-month
 (ACA) Special                                                        special enrollment period
 Enrollment                                                           on the ACA Exchanges for
                                                                      individuals who are
                                                                      uninsured for any reason.
 Private Insurance                          No applicable language.   Requires coverage of
                                                                      COVID-19 treatment with
                                                                      no patient cost-sharing in
                                                                      group and individual
                                                                      market insurance plans.
 Medicaid                                   No applicable language.   Provides a further
                                                                      temporary increase to the
                                                                      Federal Medical
                                                                      Assistance Percentage
                                                                      (FMAP) rate and delays
                                                                      implementation of the
                                                                      Medicaid Fiscal
                                                                      Accountability Regulation.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                           4
Tax Provisions
                                            Senate                       House
                                            HEALS Act                    HEROES Act
 Federal Pandemic                           The CARES Act provided       Extends the $600 per
 Unemployment                               additional payments of       week supplement to state
 Compensation (FPUC)                        $600 per week to             and federal
                                            individuals receiving        unemployment benefits
                                            unemployment insurance       through January 31, 2021.
                                            (UI) through July 2020.
                                            Beginning in August, the
                                            HEALS Act proposes a
                                            reduced UI payment of
                                            $200 per week through
                                            September 2020.
                                            Beginning in October, the
                                            program would be
                                            replaced with a payment
                                            (up to $500) that when
                                            combined with the state
                                            UI payment would replace
                                            70 percent of lost wages.
 Supplemental                               Provides payment to          Extends the financial relief
 Emergency                                  states to reimburse          provided to reimbursable
 Unemployment Relief                        nonprofits, government       employers in the CARES
 for Governmental                           agencies and Indian tribes   Act through January 31,
                                            for half of the costs they
 Entities and Nonprofits                                                 2021, and make technical
                                            incur through December
                                            31, 2020 to pay              corrections to ensure that
                                            unemployment benefits.       states can simply waive
                                            This provision increases     50 percent of the amount
                                            the percentage from 50 to    owed by such employers.
                                            75 percent.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                               5
Senate                        House
                                            HEALS Act                     HEROES Act
 Employee Retention Tax                     The CARES Act provided        Increases the per-
 Credit (ERTC)                              an ERTC in the form of a      employee limit for the
                                            refundable payroll tax        Employee Retention
                                            credit equal to 50 percent    Credit (ERC) from 50
                                            of certain wages paid by      percent of $10,000 (or
                                            employers to employees        $5,000 for the year) to 80
                                            during the crisis. The        percent of $45,000 (or
                                            Senate legislation            $36,000 for the year) per
                                            increases the applicable      employee.
                                            percentage of qualified
                                            wages reimbursed
                                            through the credit to 65
                                            percent and enhances
                                            coordination between the
                                            credit and the PPP by
                                            allowing employers to be
                                            eligible for both programs.
                                            The maximum credit
                                            amount was also
                                            increased from $10,000
                                            per year to $10,000 per
                                            quarter (with a maximum
                                            of $30,000 per year).
                                            Also, lowers the amount
                                            of reduction in gross
                                            receipts to qualify from a
                                            50 percent decline to a 25
                                            percent decline.
 Stimulus Payments                          Qualifying individuals        Provides additional
                                            earning an adjusted gross     economic stimulus
                                            income up to $75,000          payments in the form of a
                                            ($150,000 married), who       refundable tax credit of
                                            are not a dependent are       $1,200 for single filers,
                                            eligible for a $1,200         $2,400 for joint filers, plus
                                            ($2,400 married) rebate;      $1,200 for each
                                            additional $500               dependent (up to three
                                            dependent rebate will now     dependents per
                                            be provided to taxpayers      household), with a phase-
                                            with dependents of any        out for higher incomes.
                                            age. Phases-out once the
                                            income exceeds $99,000
                                            ($146,500 head of
                                            household with one child
                                            or $198,000 joint filers
                                            with no children).

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                 6
Senate                        House
                                            HEALS Act                     HEROES Act
 Earned Income Tax                          No applicable language.       Expands the eligibility and
 Credit (EITC)                                                            the amount of the earned
                                                                          income tax credit for
                                                                          taxpayers with no
                                                                          qualifying children.
                                                                          Increases the maximum
                                                                          credit amount from $538
                                                                          to $1,487.
 Child Tax Credit (CTC)                     No applicable language.       Makes the CTC fully
 and Child and                                                            refundable for 2020 and
 Dependent Care Tax                                                       increases the amount to
 Credit (CDCTC)                                                           $3,000 per child ($3,600
                                                                          for a child under age 6).
                                                                          Puerto Rico will receive
                                                                          the refundable CTC by
                                                                          having its residents file for
                                                                          the CTC with the IRS.
                                                                          Makes the CDCTC fully
                                                                          refundable for 2020 and
                                                                          increases the maximum
                                                                          credit rate to 50 percent.
 Work Opportunity Tax                       Temporarily adds 2020         No applicable language.
 Credit (WOTC)                              qualified COVID-19
                                            unemployment recipients
                                            as a new WOTC targeted
                                            group; increases the
                                            credit amount applicable
                                            to the new targeted group
                                            to 50 percent of the first
                                            $10,000 of qualified first-
                                            year wages. This
                                            provision also removes
                                            the limitation on rehires
                                            for 2020 qualified
                                            recipients.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                 7
Senate                         House
                                            HEALS Act                      HEROES Act
 Safe and Healthy                           Establishes a refundable       No applicable language.
 Workplace Tax Credit                       payroll tax credit equal to
                                            50 percent of an
                                            employer’s qualified
                                            employee protection,
                                            workplace configuration
                                            and workplace technology
                                            expenses; cap is equal to
                                            $1,000 for each of the first
                                            500 employees, plus $750
                                            for each employee
                                            between 500 and 1,000,
                                            plus $500 for each
                                            employee that exceeds
                                            1,000.
 Payroll Credit for Fixed                   No applicable language.        Provides a 50 percent
 Expenses of Employers                                                     refundable payroll tax
 Subject to Closure by                                                     credit for qualified fixed
 COVID-19                                                                  costs, which include
                                                                           covered rent obligations,
                                                                           covered mortgage
                                                                           obligations and covered
                                                                           utility payments, limited to
                                                                           employers with no more
                                                                           than 1,500 full-time
                                                                           equivalent employees or
                                                                           no more than $41.5
                                                                           million in gross receipts in
                                                                           2019.
 State and Local Taxes                      No applicable language.        Eliminates the $10,000
 (SALT)                                                                    cap on SALT deductions.
 Business Meal                              Provides temporary             No applicable language.
 Deduction for                              allowance of 100 percent
 Restaurants                                deduction for business
                                            meals through 2020.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                 8
Senate                         House
                                            HEALS Act                      HEROES Act
 Retirement and                             Clarifies that money           Creates an expanded
 Pensions                                   purchase plans are             partition program allowing
                                            included in the retirement     the Pension Benefit
                                            plans qualifying for           Guarantee Corporation
                                            Section 2202 of the            (PBGC) to take on
                                            CARES Act, which               increased financial
                                            temporarily allows             obligations in distressed
                                            individuals to make            multi-employer pensions
                                            penalty-free withdrawals       plans; provides relief to
                                            from certain retirement        single-employer plans by
                                            plans for COVID-19             extending amortization.
                                            related expenses.
 Independent                                Establishes a safe harbor      Provides a 90 percent
 Contractors                                allowing marketplace           refundable individual
                                            platform companies to          income tax credit for
                                            provide certain COVID-19       certain self-employed
                                            related assistance to          individuals who have
                                            service providers without      experienced a significant
                                            jeopardizing their             loss of income.
                                            independent contractor
                                            status.
 Paid Sick and Family                       No applicable language.        Extends the refundable
 Leave                                                                     payroll tax credits for paid
                                                                           sick and family leave
                                                                           through the end of 2021.
 Net Operating Loss                         Allows farmers who             Limits NOL carrybacks to
 (NOL)                                      elected a two-year NOL         taxable years beginning
                                            carryback rather than          on or after January 1,
                                            claim the five-year            2018. Prohibits taxpayers
                                            carryback provided by the      with excessive executive
                                            CARES Act. Also allows         compensation or
                                            farmers who previously         excessive stock buybacks
                                            waived an election to          and dividends from
                                            carry back NOL to revoke       carrying back losses.
                                            the new waiver. Applies        Reinstates and makes
                                            retroactively as if included   permanent a limit on the
                                            in the CARES Act.              ability of pass-through
                                                                           business owners to
                                                                           deduct business net
                                                                           operation losses over
                                                                           $250,000 ($500,000 for
                                                                           joint filers).

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                 9
Senate                       House
                                            HEALS Act                    HEROES Act
 Carryover for Health and                   Allows FSA/Dependent         Permits health and
 Dependent Care Flexible                    Care Flexible Spending       dependent care flexible
 Spending Arrangements                      Account (DCFSA) unused       spending arrangements to
 (FSAs)                                     2020 contribution            allow participants to carry
                                            amounts to be rolled over    over up to $2,750 in
                                            into the 2021 plan year.     unused benefits and the
                                                                         annual maximum amount
                                                                         of unused dependent care
                                                                         assistance benefits,
                                                                         respectively, from 2020 to
                                                                         2021.
 Health Savings                             Allows employer on-site      No applicable language.
 Accounts (HSAs)                            clinics to be an eligible
                                            HSA expense through
                                            December 31, 2021.

Paycheck Protection Program (PPP)
                                            Senate                       House
                                            HEALS Act                    HEROES Act
 Program Extension                          Extends authorization for    Extends authorization for
                                            the PPP through              the PPP through
                                            December 31, 2020.           December 31, 2020.
 7(a) Loans to Recovery                     Authorizes $100 billion in   Includes proposals to
 Sector Businesses                          long-term, low-cost loans    better support SBA’s core
                                            to recovery sector           programs, including
                                            businesses, which include    waiving fees associated
                                            seasonal businesses and      with the SBA 7(a) and 504
                                            businesses located in low-   loan programs for
                                            income census tracts that    borrowers and lenders
                                            meet the applicable SBA      and increasing the annual
                                            revenue size standard,       lending limit of the 7(a)
                                            have no more than 500        program from $30 billion
                                            employees, and               to $75 billion.
                                            demonstrate at least a 50
                                            percent reduction in gross
                                            revenues.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                              10
Senate                        House
                                            HEALS Act                     HEROES Act
 PPP Second Draw                            Provides $190 billion of      Appropriates an additional
 Loans                                      committed and                 $10 billion for Emergency
                                            appropriated funds to         EIDL Grants to remain
                                            support PPP and PPP           available until expended.
                                            Second Draw Loans.
                                                                          Sets aside funds
                                            Eligibility for PPP Second
                                                                          specifically for small
                                            Draw loans is defined as
                                                                          Community Development
                                            small businesses that
                                                                          Financial Institutions
                                            meet the applicable SBA
                                                                          (CDFIs), Minority
                                            revenue size standard,
                                                                          Depository Institutions
                                            have no more than 300
                                                                          (MDIs), SBA microlenders
                                            employees and
                                                                          and SBA Certified
                                            demonstrate at least a 50
                                                                          Development Companies
                                            percent reduction in gross
                                                                          (CDCs), and mandates
                                            revenues.
                                                                          that 25 percent of the
                                            Includes a $25 billion set-   funds be used for small
                                            aside for entities with 10    businesses with 10 or
                                            or fewer employees and a      fewer employees and that
                                            $10 billion set-aside for     another 25 percent of the
                                            loans made by community       funds be used solely for
                                            lenders.                      nonprofits.
                                            The maximum loan size         Removes regulatory
                                            would equal 2.5 times         actions that limited
                                            average total monthly         forgiveness of non-payroll
                                            payroll costs, up to $2       operating expenses to 25
                                            million. Businesses that      percent of total
                                            received a PPP loan may       forgiveness.
                                            not receive another PPP
                                            loan that aggregates to
                                            more than $10 million.
                                            The 60/40 cost allocation
                                            for payroll and nonpayroll
                                            costs to receive full PPP
                                            forgiveness continues to
                                            apply.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                              11
Senate                          House
                                            HEALS Act                       HEROES Act
 PPP Improvements                           Expands forgivable              Adds flexibility in the
                                            expenses to include             covered period for
                                            covered supplier costs,         borrowers by extending
                                            covered worker protection       the eight-week period to
                                            expenditures, and               24 weeks and extends the
                                            covered operations              covered period from June
                                            expenditures.                   30 to December 31.
                                            Allows borrowers to select      Expands eligibility for the
                                            a preferred 8-week period       PPP to all 501(C)
                                            through 2020 to use the         nonprofits.
                                            forgivable loan proceeds.
                                            Simplifies the forgiveness
                                            application process for
                                            loans under $2 million.
                                            Expands PPP eligibility to
                                            include certain 501(c)(6)
                                            organizations, including
                                            Chambers of Commerce
                                            and Destination Marketing
                                            Organizations with 300 or
                                            fewer employees.

Liability Reform
                                            Senate                          House
                                            HEALS Act                       HEROES Act
 Liability Reform                           Includes personal injury        No applicable language.
                                            liability limitation, medical
                                            malpractice liability
                                            imitation, product liability
                                            limitation and
                                            labor/employment liability
                                            protection.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                 12
State/Local Government Assistance
                                            Senate                        House
                                            HEALS Act                     HEROES Act
 Coronavirus Relief                         The CARES Act provided        Includes $500 billion for
 Funds                                      $150 billion in               state governments and
                                            “Coronavirus Relief           $375 billion for local
                                            Funds” to state and local     governments to mitigate
                                            governments to cover          the fiscal impacts of
                                            COVID-19 related              COVID-19.
                                            expenditures through the
                                            end of 2020.
                                            While Republicans have
                                            not proposed additional
                                            funding for state and local
                                            governments, they have
                                            proposed extending the
                                            end date that states and
                                            localities may use these
                                            funds from December 30,
                                            2020, to 90 after the last
                                            day of a government’s
                                            fiscal year (FY) 2021.

Critical Supply Chains and Expanding Manufacturing Capacity
                                            Senate                        House
                                            HEALS Act                     HEROES Act
 State Stockpiles                           Establishes state             No applicable language
                                            stockpiles of medical
                                            products (PPE,
                                            ventilators, etc.)

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                             13
Senate                         House
                                            HEALS Act                      HEROES Act
 Strategic National                         Aims to improve the SNS        Enhances medical supply
 Stockpile (SNS)                            by partnering with medical     chain elasticity, improves
                                            product manufacturers,         the domestic production of
                                            distributors or other          PPE and partners with
                                            entities to increase the       industry to refresh and
                                            stockpiling and                replenish existing stocks.
                                            manufacturing capacity of
                                                                           Allows the SNS to sell
                                            reserve amounts of
                                                                           products to other federal
                                            medical products to be
                                                                           departments/agencies
                                            provided during or in
                                                                           within six months of
                                            advance of a public health
                                                                           product expiration.
                                            emergency.
                                                                           Requires the Secretary of
                                            Requires that any
                                                                           HHS to report weekly on
                                            purchases by HHS of
                                                                           the inventory status of the
                                            covered items for the SNS
                                                                           SNS during a public
                                            be manufactured
                                                                           health emergency.
                                            domestically within five
                                            years except for               Requires the SNS to
                                            purchases under                develop improved
                                            $150,000 and those that        processes for requests
                                            the Secretary determines       and future
                                            is not available. Covered      communications between
                                            PPE items include              the SNS and states, as
                                            clothing, sanitizing           well as report to Congress
                                            supplies and ancillary         about every request made
                                            medical supplies such as       to the SNS during COVID-
                                            disinfecting wipes, privacy    19.
                                            curtains, beds and             Launches a Government
                                            bedding, testing swabs,        Accountability Office
                                            gauze and bandages,            (GAO) study on user fees
                                            tents, tarpaulins, covers or   for the SNS.
                                            bags. The component
                                            parts must also be grown,
                                            reprocessed, reused or
                                            produced in the U.S.
 Guidance for States and                    Requires HHS to publish        Guarantees the Indian
 Indian Tribes on                           guidance on how states         Health Service (IHS) and
 Accessing the SNS                          and tribes can request         other tribal health
                                            and access resources           organizations direct
                                            from the SNS.                  access to the SNS.
 Credit for U.S.                            Establishes a 30 percent       No applicable language.
 Manufacturers                              credit for U.S.
                                            manufacturers against
                                            equipment costs
                                            associated with PPE
                                            manufacturing.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                14
Senate                        House
                                            HEALS Act                     HEROES Act
 Foreign Researchers                        Requires sponsors of          No applicable language.
                                            foreign researchers to
                                            disclose information about
                                            foreign researchers to the
                                            State Department to
                                            prevent unauthorized
                                            access of export
                                            technologies.
 Microelectronics                           Establishes a grant           No applicable language.
                                            program under the
                                            Department of Commerce
                                            for the purpose of
                                            constructing, expanding
                                            and modernizing
                                            commerce semiconductor
                                            manufacturing facilities in
                                            the U.S.
                                            Requires the Department
                                            of Defense to work with
                                            private sector
                                            microelectronic
                                            manufacturers to support
                                            collaborative research and
                                            a secure supply chain.
                                            Establishes a Multilateral
                                            Microelectronics Security
                                            Fund to incentivize
                                            multilateral participation
                                            and a secure
                                            microelectronics supply
                                            chain.
 National Centers of                        No applicable language.       Creates the National
 Excellence in                                                            Centers of Excellence in
 Continuous                                                               Continuous
 Pharmaceutical                                                           Pharmaceutical
 Manufacturing                                                            Manufacturing.
 Supply Chain Flexibility                   No applicable language.       Establishes a supply chain
 Manufacturing Pilot                                                      flexibility manufacturing
 Program                                                                  pilot program to enhance
                                                                          medical supply chain
                                                                          elasticity and establish
                                                                          and maintain domestic
                                                                          reserves of medical
                                                                          supplies.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                              15
Senate                      House
                                            HEALS Act                   HEROES Act
 Supply Chain                               No applicable language.     Requires the President to
 Vulnerabilities                                                        produce a detailed plan to
                                                                        ensure the supply of
                                                                        medical materials
                                                                        essential to national
                                                                        defense, analyze existing
                                                                        supply chains for
                                                                        vulnerabilities and detail
                                                                        measures that can be
                                                                        taken to diversify supply
                                                                        chains.
 Public Health and Social                   No applicable language.     Allocates additional
 Services Emergency                                                     funding to the Public
 Fund                                                                   Health and Social
                                                                        Services Emergency Fund
                                                                        for expanding
                                                                        manufacturing to respond
                                                                        to the COVID-19
                                                                        pandemic.

Education and Workforce Development
                                            Senate                      House
                                            HEALS Act                   HEROES Act
 Simplifying Student                        Reduces current             Provides up to $10,000 in
 Loan Repayment                             repayment options to two    debt relief to be applied to
                                            options: a standard 10-     a private student loan.
                                            year mortgage-style
                                                                        Requires private student
                                            payment plan and an
                                                                        servicing companies that
                                            income-based payment
                                                                        receive funds to offer
                                            plan that limits payments
                                                                        income driven repayment
                                            to 10 percent of
                                                                        plans.
                                            discretionary income (the
                                            income amount above 150
                                            percent of the federal
                                            poverty line).
 Emergency Education                        Authorizes one-time,        No applicable language.
 Freedom Grants                             emergency appropriations
                                            funding for scholarship-
                                            granting organizations
                                            (SGOs) in each state.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                              16
Senate                        House
                                            HEALS Act                     HEROES Act
 Waivers for Career,                        Provides the Secretary        Provides legislative
 Technical and Adult                        with the authority to         flexibility for programs
 Education                                  provide waivers from the      under the Carl D. Perkins
                                            Carl D. Perkins Career        Career and Technical
                                            and Technical Education       Education Act of 2006, the
                                            Act of 2006, the Adult        Adult Education and
                                            Education and Family          Family Literacy Act, and
                                            Literacy Act and the          allows Perkins CTE and
                                            General Education             Adult Education eligible
                                            Provisions Act.               agencies to apply for
                                                                          waivers under the General
                                                                          Education Provisions Act
                                                                          for the 2019-2020
                                                                          academic year.
 Additional Workforce                       Authorizes 40 percent of      Provides additional
 Activities                                 funds provided under the      eligibility and enrollment
                                            Workforce Innovation and      length flexibilities for Job
                                            Opportunity Act to be         Corps participants.
                                            used on incumbent worker
                                                                          Expands age and
                                            training or transitional
                                                                          enrollment length eligibility
                                            jobs.
                                                                          requirements for
                                            Provides the Secretary of     YouthBuild activities.
                                            Labor with the authority to
                                                                          Requires the Secretary to
                                            waive age and program
                                                                          identify strategies to
                                            length requirements for
                                                                          support virtual and online
                                            Job Corps and
                                                                          learning and training for
                                            YouthBuild.
                                                                          apprenticeships.
                                            Authorizes additional
                                            funding to support youth
                                            activities under the
                                            Workforce Innovation and
                                            Opportunity Act, the
                                            Reentry Employment
                                            Opportunities program at
                                            the Department of Labor,
                                            National Dislocated
                                            Worker grants, and
                                            apprenticeship.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                 17
Senate                         House
                                            HEALS Act                      HEROES Act
 Workforce Recovery and                     Authorizes funding for a       Allocates $485 million for
 Training Services                          formula grant to states to     grants to states for adult
                                            support job training,          employment and training
                                            including through activities   activities, including
                                            authorized under the           incumbent worker
                                            Workforce Innovation and       trainings, transitional jobs,
                                            Opportunity Act such as        on-the-job training,
                                            customized training, on-       individualized career
                                            the-job training, Individual   services and more.
                                            Training Accounts or
                                            transitional jobs.
 Amendments to                              Clarifies that the CARES       Waives the nonfederal
 Education Provisions of                    Act waiver for matching        match requirement for
 CARES                                      funds in Federal Work          nonprofit employers for
                                            Study extends to               award years 2019-2020
                                            participating nonprofit        and 2020-2021.
                                            organizations.
                                                                           Extends flexibility to allow
                                            Extends CARES authority        institutions to pay federal
                                            to reallocate                  work-study students
                                            Supplemental Education         unable to complete their
                                            Opportunity Grant or           jobs.
                                            Federal Work Study funds
                                                                           Clarifies that a foreign
                                            through the end of the
                                                                           institution is eligible to
                                            2020-2021 award year.
                                                                           offer courses via distance
                                            Extends CARES waivers          declaration and allows
                                            to foreign institutions        foreign institutions to enter
                                            through the end of the         into agreements with U.S.-
                                            2020-2021 award year.          based institutions.
                                            Clarifies that CARES Act
                                            relief for federal student
                                            loan borrows also applies
                                            to students in in-school
                                            deferment.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                  18
Tribal Provisions
                                            Senate                    House
                                            HEALS Act                 HEROES Act
 Guidance for States                        Requires HHS to publish   Requires a process
 and Indian Tribes on                       guidance on how states    developed that shall
 Accessing the SNS                          and tribes can request    include the form and
                                            and access resources      manner in which states,
                                            from the SNS.             localities, tribes and
                                                                      territories are required to
                                                                      submit requests for
                                                                      supplies from the SNS;
                                                                      the criteria used by the
                                                                      Secretary in responding to
                                                                      such requests, including
                                                                      the reasons for fulfilling or
                                                                      denying such requests;
                                                                      and the circumstances
                                                                      that result in prioritization
                                                                      of distribution of supplies
                                                                      from the Stockpile to
                                                                      states, localities, tribes or
                                                                      territories.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                             19
Coronavirus Relief                         No additional funding for      Provides $20 billion in
 Fund                                       the Coronavirus Relief         funding to assist tribal
                                            Fund, but provides             governments with the
                                            expansion of allowable         fiscal impacts from the
                                            use of Coronavirus Relief      public health emergency
                                            Fund payments by states        caused by the
                                            and tribal and local           Coronavirus. The Act
                                            governments, and               affirms the April 27, 2020
                                            expands the end date for       decision in the Chehalis
                                            allowable necessary            lawsuit and clarifies the
                                            expenditures from              intent of Congress that
                                            December 30, 2020 to 90        only federally recognized
                                            days after the last day of a   tribal governments are
                                            government’s FY 2021.          eligible for payments from
                                                                           the Coronavirus Relief
                                            Allows Coronavirus Relief
                                                                           Fund and not Alaska
                                            Funds to be used for
                                                                           Native Corporations.
                                            “revenue shortfalls,”
                                            defined as shortfalls of       The bill requires the
                                            revenue from taxes, fees       Treasury Secretary to
                                            or other sources of funds      redistribute any returned
                                            for a state, local or other    amounts from the CARES
                                            government relative to FY      Act to eligible tribal
                                            2019 levels. To be able to     governments and requires
                                            use relief funds to cover      redistribution of amounts
                                            revenue shortfalls, a          received or recouped from
                                            government must certify        prior payments for tribal
                                            that it has distributed at     governments. The bill
                                            least 25 percent of            requires the Treasury
                                            Coronavirus Relief Funds       Secretary to disclose a
                                            it received to downstream      detailed description of the
                                            governments. A                 allocation formula, and the
                                            government can use no          process and methodology
                                            more than 25 percent of        used to determine the
                                            relief funds it has received   funding allocation.
                                            to cover revenue
                                                                           The term “Indian Tribe” is
                                            shortfalls.
                                                                           deleted and the term
                                            Tribal government under        “Tribal Government” is
                                            the HEALS Act means a          defined as “the recognized
                                            tribal government              governing body of any
                                            identified pursuant to the     Indian or Alaska Native
                                            Federally Recognized           tribe, band, nation,
                                            Indian Tribe List Act of       pueblo, village,
                                            1994.                          community, component
                                                                           band, or component
                                                                           reservation, individually
                                                                           identified (including
                                                                           parenthetically) in the list
                                                                           published most recently
                                                                           as of the date of

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                 20
Senate                        House
                                            HEALS Act                     HEROES Act
                                                                          enactment of this Act
                                                                          pursuant to the Federally
                                                                          Recognized Indian Tribe
                                                                          List Act of 1994.”
                                                                          The bill provides more
                                                                          flexibility for tribal, state
                                                                          and local governments to
                                                                          use the funds, and says
                                                                          that funds can be used to
                                                                          replace lost, delayed or
                                                                          decreased revenues
                                                                          stemming from the public
                                                                          health emergency with
                                                                          respect to COVID-19. The
                                                                          bill also extends the date
                                                                          range of allowable
                                                                          expenses from January 1,
                                                                          2020 through December
                                                                          31, 2020. The prior law
                                                                          only allowed for expenses
                                                                          incurred after March 1.

Time to Rescue United States’ Trusts (TRUST) Act
                                            Senate                        House
                                            HEALS Act                     HEROES Act
 Federal Trust Funds                        Requires the Treasury         No applicable language.
                                            Secretary to submit a
                                            report to Congress
                                            identifying each federal
                                            trust fund program
                                            projected to have
                                            inadequate balances at
                                            any point prior to the end
                                            of fiscal year (FY) 2035
                                            and establishes a “Rescue
                                            Committee” for each trust
                                            fund to provide for the
                                            solvency of that trust fund
                                            and simply and improve
                                            the program.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                 21
COVID-19 Heroes Fund
                                            Senate                        House
                                            HEALS Act                     HEROES Act
 Premium Pay for                            No applicable language.       Proposes establishing a
 Essential Workers                                                        $200 billion Heroes Fund.
                                                                          Under the provision,
                                                                          theTreasury would award
                                                                          grants to essential
                                                                          employers to provide
                                                                          premium pay to essential
                                                                          workers.

Additional Supplemental Appropriations
                                            Senate                        House
                                            HEALS Act                     HEROES Act
 Agriculture, Rural                         Allocates $20 billion of      Allocates $20 billion to
 Development, Food and                      direct payments to            strengthen activities and
 Drug Administration and                    growers, producers and        services that connect
 Related Agencies                           processors who are            farmers and ranchers to
                                            impacted by COVID-19.         stress assistance
                                                                          resources and programs.
 Commerce, Justice,                         Allocates $448 million for    Allocates $400 million to
 Science and Related                        the Bureau of the Census,     the Bureau of the Census
 Agencies                                   including additional          for expenses due to
                                            funding for field             delays in the 2020
                                            operations and data           Decennial Census.
                                            processing related to the
                                                                          Allocates $200 million for
                                            2020 Decennial Census.
                                                                          the Federal Bureau of
                                            Allocates $200 million for    Prisons.
                                            Federal Bureau of
                                            Prisons.
 Financial Services and                     No additional funding for     Allocates $500 billion for
 General Government:                        state and local               state governments and
                                            governments, instead          $375 billion for local
                                            allows them to use            governments to mitigate
                                            CARES Act funds to make       the fiscal impacts of
                                            up lost revenues.             COVID-19.
 Homeland Security                          Allocates $1.08 billion for   Allocates $1.3 billion to
                                            the Federal Emergency         FEMA to respond to the
                                            Management Agency             pandemic.
                                            (FEMA) to respond to the
                                                                          Allocates $3 million to the
                                            pandemic.
                                                                          Department of Homeland
                                            Allocates $208 million for    Security Inspector
                                            pandemic response for         General for oversight of
                                            the Transportation            pandemic response
                                            Security Administration.      activities.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                               22
Senate                       House
                                            HEALS Act                    HEROES Act
 Interior, Environment,                     Allocates $1.6 billion for   Allocates $2.1 billion for
 and Related Agencies                       the Indian Health Service    the Indian Health Service
                                            to address health care       to address health care
                                            needs related to the         needs related to the
                                            pandemic.                    pandemic.
                                                                         Allocates $1 billion to the
                                                                         Department of the Interior
                                                                         for building hospitals and
                                                                         critical infrastructure in the
                                                                         Insular Areas respond to
                                                                         the pandemic.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                 23
Labor, Health and                          Allocates $2.5 billion to    Allocates $3.1 billion to
 Human Services,                            the Department of Labor      the Department of Labor
 Education and Related                      to support workforce         to support workforce
 Agencies                                   training and worker          training and worker
                                            protection activities        protection activities
                                            relating to the pandemic.    relating to the pandemic.
                                            For the Department of        For the Department of
                                            Health and Human             Health and Human
                                            Services:                    Services:
                                            • $3.4 billion for the       • $2.1 billion for the
                                              Centers for Disease          Centers for Disease
                                              Control and                  Control and Prevention.
                                              Prevention. $125             $100 million of this is
                                              million shall be             available to tribes, tribal
                                              allocated to tribes,         organizations, urban
                                              tribal organizations,        Indian health
                                              urban Indian health          organizations or health
                                              organizations or health      service providers to
                                              service providers to         tribes for health-related
                                              tribes for carrying out      activities.
                                              surveillance,
                                                                         • $4.74 billion for the
                                              epidemiology,
                                                                           National Institutes of
                                              laboratory capacity,
                                                                           Health.
                                              infection control,
                                              immunization activity,     • $175 billion to the
                                              mitigation,                  Public Health and
                                              communications and           Social Services
                                              other preparedness           Emergency Fund.
                                              and response activities.   • $3 billion for the
                                            • $15.5 billion for the        Substance Abuse and
                                              National Institutes of       Mental Health Services
                                              Health.                      Administration.

                                            • $78.1 for the Public       • $175 million for the
                                              Health and Social            Centers for Medicare
                                              Services Emergency           and Medicaid Services.
                                              Fund.                      • $10 billion for the
                                            • $4.5 billion for the         Administration for the
                                              Substance Abuse and          Administration for
                                              Mental Health Services       Children and Families.

                                            • $150 million for the       • $100 million for the
                                              Centers for Medicare         Administration for
                                              and Medicaid Services.       Community Living.

                                            • $16.7 billion for the      • $7.6 billion for the
                                              Administration for           Health Resources and
                                              Children and Families.       Services
                                                                           Administration.

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                24
Senate                         House
                                            HEALS Act                      HEROES Act
                                            • $75 million for the          • $4.57 billion for the
                                              Administration for             Assistant Secretary for
                                              Community Living.              Preparedness and
                                                                             Response.
                                            Provides $4.5 billion for
                                            the Substance Abuse and        Provides $3 billion for the
                                            Mental Health Services         Substance Abuse and
                                            Administration                 Mental Health Services
                                            (SAMHSA):                      Administration
                                                                           (SAMHSA):
                                            • $2 billion for Mental
                                              Health Services Block        • $1.5 billion for
                                              Grant (at least half           Substance Abuse
                                              must be directed to            Prevention and
                                              behavioral health              Treatment Block Grant.
                                              providers).
                                                                           • $1 billion for
                                            • $1.5 billion for               Community Mental
                                              Substance Abuse and            Health Services Block
                                              Prevention Treatment           Grant.
                                              Block Grant.
                                                                           • $265 million for
                                            • $600 million for               emergency response
                                              Certified Community            grants to address
                                              Behavioral Health              behavioral health
                                              Clinics.                       needs.
                                            • $50 million for Suicide      • $25 million for Suicide
                                              Prevention Programs.           Lifeline and Disaster
                                                                             Distress Helpline.
                                            • $100 million to support
                                              mental health in             • $100 million for Project
                                              schools (Project               AWARE.
                                              AWARE).
                                                                           • At least $150 million for
                                            • $250 million for flexible      tribes, tribal
                                              emergency grants to            organizations, urban
                                              states.                        Indian Health
                                                                             organizations or health
                                                                             service providers to
                                                                             tribes across a variety
                                                                             of programs.

                                            Allocates $105.1 billion for   Allocates $100 billion for
                                            the Department of              the Department of
                                            Education, including $525      Education, including $450
                                            million for the Bureau of      million for the Bureau of
                                            Indian Education (from the     Indian Education (from the
                                            Department of Education        Department of Education
                                            Stabilization Fund).           Stabilization Fund).

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                25
Senate                        House
                                            HEALS Act                     HEROES Act
 Transportation, Housing                    Allocates $13 billion for     Allocates $15 billion for
 and Urban                                  the Department of             ongoing work of State,
 Development, and                           Transportation, $10 billion   Tribal, and Territorial
 Related Agencies                           of which is for the Airport   Departments of
                                            Improvement Program           Transportation and $16
                                            (AIP)—the same amount         billion for operating
                                            provided under the            assistance grants to
                                            CARES Act.                    support transit agencies.
                                                                          No additional funding for
                                                                          AIP.
 State, Foreign                             Allocates $425 million for    Allocates $2 million for the
 Operations, and Related                    Consular and Border           Department of State
 Programs                                   Security Programs.            Inspector General.

Relevant Links
• Cares 2.0: Emergency Appropriations (Legislative Text)
• Cares 2.0: Emergency Appropriations (Section-By-Section Summary)
• Cares 2.0: Senate Finance Committee Provisions (Legislative Text)
• Cares 2.0: Senate Finance Committee Provisions (Section-By-Section Summary)
• Cares 2.0: Continuing Small Business Recovery and PPP Act (Legislative Text)
• Cares 2.0: Continuing Small Business Recovery and PPP Act (Section-By-Section
  Summary)
• Cares 2.0: Continuing Small Business Recovery and PPP Act (One-Pager)
• Cares 2.0: Safely Back to School and Back to Work Act (Legislative Text)
• Cares 2.0: Safely Back to School and Back to Work Act (Section-By-Section
  Summary)
• Cares 2.0: Child Care Grants One-Pager
• Cares 2.0: Simplifying Student Loan Repayment One-Pager
• Cares 2.0: Safe to Work Act (Legislative Text)
• Cares 2.0: Safe to Work Act (Section-By-Section Summary)
• Cares 2.0: Supporting America’s Restaurant Workers Act (Legislative Text)
• Cares 2.0: Cares 2.0 Restoring Critical Supply Chains and Intellectual Property Act
  (Legislative Text)
• Cares 2.0: Cares 2.0 Restoring Critical Supply Chains and Intellectual Property Act
  (Section-By-Section Summary)
• Cares 2.0: TRUST Act (Legislative Text)
• Cares 2.0: TRUST Act (Section-By-Section Summary)
• Cares 2.0: TRUST Act (One-Pager)

© 2020 Akin Gump Strauss Hauer & Feld LLP                                                                26
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