Many are looking to the federal government to fill a $1.2 billion hole in Nevada’s budget due to coronavirus. On Tuesday, the Nevada State Legislature passed Assembly Joint Resolution 1 of the 31st Special Session, urging Congress and President Trump to provide additional relief funding.
When it comes to this issue, I think it’s important to acknowledge the more than $13 billion the State of Nevada has received in the last six months, which includes $3.4 billion in emergency grants and loans for Nevada’s small businesses to save 500,000 jobs, approximately $4 million a month for Governor Sisolak to use the National Guard, nearly $1 billion in medical grants for hospitals and clinics to put toward testing, care, and Personal Protective Equipment (PPE), $200 million for K-12 and higher education initiatives, $2.5 billion for individual relief checks for nearly half of all Nevadans, and $1.2 billion in funding to Nevada’s state and local governments. Overall, this funding amounts to more than $70 million in federal relief per day, which was allocated to Nevada during the first 180 days of 2020. This funding is an unprecedented level of relief in our State’s history and in our nation’s history.
What Congress has accomplished so far ($70 million a day) is incredibly significant in terms of making sure Nevada gets on track for recovery. Right now, Nevada should be focused on figuring out the best way to move its economy forward by looking at the action Congress has already taken, determining what action might be appropriate to take next, if we missed any funding areas that need attention, and if the money we’ve already allocated is being spent wisely. Those kinds of analyses, as well as promoting a tax base recovery, would be most helpful.
In advance of Congress’s anticipated preparation of a fifth coronavirus response package, the Governor’s office recently provided our office with a detailed overview of the federal funding allocated to Nevada to date. After evaluating the Governor’s overview, I’ve concluded that additional data for some of the largest funding streams of direct and indirect aid to Nevada, which ultimately offsets spending that would have been incurred by the State, would be helpful.
These funding streams include:
- Federal Pandemic Unemployment Compensation (FPUC): $2,011,825,200
- Pandemic Emergency Unemployment Compensation (PEUC): $16,159,213
- Pandemic Unemployment Assistance (PUA) Payments: $327,533,813
- PUA/FPUC Payments: $586,030,500
- $10,000,000 for administrative costs awarded to Department of Employment, Training & Rehabilitation (DETR)
- 1,556,455 total Economic Impact Payments, totaling $2,559,294,997
- Provider Relief Funds reflecting the current cumulative amount received by healthcare providers totaling $632,277,435
- Medicare Advanced/Accelerated Payments totaling $617,131,546 (loans against future Medicare reimbursements)
- CARES Act Airport Improvement Program (AIP) grant allocations: $231,448,014
- Federal Transit Administration: $167,493,508
According to my calculations, the data omissions of these funding figures in Governor Sisolak’s overview total more than $6 billion. Since the federal government is also experiencing significant financial strain, it is imperative we gain a comprehensive understanding of how the above figures factor into Nevada’s $1.2 billion shortfall.
As such, I sent a letter this week to Governor Sisolak and Susan Brown, the Director of the Governor's Finance Office, to seek additional clarification on the federal funding Nevada has received, the impact these funding streams have on Nevada’s budget situation, how this funding is specifically being used, and if this funding has been reflected in calculations in terms of state budget shortages. I will be sure to keep you apprised of any updates we receive.
Assembly Joint Resolution 1 of the 31st Special Session of the Nevada Legislature:
I’ve read Assembly Joint Resolution 1. It’s well written, except for one word: “Flexible.” The more than $13 billion already provided was all specifically directed. Expect future funds to also be specifically directed. That is why state budget spending and fiscal analysis data is critical. A request to keep spending record amounts of funds and deciding "we’ll spend it how we want" is…well, an interesting perspective.
CORONAVIRUS UPDATE
On Tuesday, the biotechnology company Moderna, who is working in tandem with the National Institutes of Health (NIH) on a coronavirus vaccine, announced its development of a COVID-19 vaccine that has been found to induce immune responses in all of the volunteers who received it in a Phase 1 study. These early results showed the vaccine working to trigger an immune response with mild side effects. The vaccine is expected to be used later this month in a large Phase 3 trial – the final trial stage before regulators consider whether to make the vaccine available. In a press release sent out on Tuesday, Moderna noted that if all goes well in future studies, "the Company remains on track to be able to deliver approximately 500 million doses per year, and possibly up to 1 billion doses per year, beginning in 2021."
IN CASE YOU MISSED IT
Paycheck Protection Program
Following recent and unanimous votes in both the House and the Senate, President Trump signed legislation extending the deadline for businesses to apply for Paycheck Protection Program (PPP) loans through August 8th.
Click here for more information on how to apply for a PPP loan and here for a list of participating lenders broken down by state.
In Nevada, this critical program has processed more than 42,000 loans, saving 500,000 jobs and totaling $4,125,976,098 in assistance. The PPP has been a lifeline to many businesses across the Silver State including the Boys and Girls Club of the Truckee Meadows, the Moana Nursery, and the Pershing County Hospital District, to name a few.
LOOKING AHEAD
Next week, the House is back in session and we expect to consider the following pieces of legislation:
- H.R. 6395 – William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, here.
- H.R. 2214 – No Ban Act, here.
- H.R. 5581 – Access to Counsel Act, here.
- Senate Amendment to H.R. 1957 - Great American Outdoors Act, here.
- H.R. 7573 – Removing Statues from the Capitol, here.
- FY 21 Appropriations Package #1 (State & Foreign Operations, Military Construction & Veterans Affairs, Agriculture, and Interior & Environment).
- Additional legislative items are possible.
As always, thank you for subscribing to the Amodei Report. I look forward to continuing to keep you up to date on the issues you care about most. For additional information, please visit my website at amodei.house.gov or call my Washington office: (202) 225-6155, Reno office: (775) 686-5760, or Elko office: (775) 777-7705. To receive updates on what I am doing in Washington and in Nevada’s 2nd District follow me on Facebook, Twitter, Instagram, and YouTube.
