Will Small Businesses Receive Omicron COVID Relief Money in 2022? Not without a partisan fight


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The surge in omicron-linked COVID-19 cases put the brakes on vacation plans for many Americans and small businesses last month, and this has already led to calls from business organizations and members of Congress for additional relief as lawmakers return to Washington, DC, in 2022.

The death of the massive Democrats ‘reconciliation spending bill could create an opening in Congress’ schedule to allow it to meet these demands. But with sharp divisions in Congress and differing philosophies on how to deal with the highly politicized virus, legislation offering even targeted relief could meet a difficult path to President Biden’s office.

Representatives Dean Phillips, D-Minn., Earl Blumenauer, D-Ore., And Brian Fitzpatrick, R-Pa., Led the campaign for small business relief last month. They said in a letter that Congress should provide liquidity to industries that may be most affected by omicron through the Restaurant Revitalization Fund (RRF). The RRF ran out of money in the fall.

As the U.S. economy continues to grow, the recovery has been uneven, and the negative effects of the rapid spread of newer variants of COVID-19 are disproportionately impacting businesses that depend on in-person collection for survival, including including restaurant, hospitality, fitness, live events and travel industries, ”the letter read.

Rep. Dean Phillips, D-Minn., Speaks at the Problem Solvers Caucus press conference on Capitol Hill on Tuesday, February 11, 2020. Phillis and Problem Solvers Caucus Rep, Co-Chair, Brian Fitzpatrick, R-Pa. months, they bear additional costs (Getty Images)

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“We… call on House and Senate leaders to accelerate a targeted relief program that funds all previously eligible claims through the RRF and allows small businesses in the fitness, live events and travel industries to claim the much needed federal help, ”the letter continued. .

Phillips and Fitzpatrick are both part of the bipartisan House Problem Solvers Caucus (PSC) and PSC Representative Anthony Gonzalez, R-Ohio, also joined the letter. But it appears that any further support from the GOP for additional expenses may be very limited.

“As inflation continues to rise, the federal government should curb any further spending,” Representative Dusty Johnson, RS.D., a PSC whip, told Fox News. “State governments still have money from previous pandemic relief programs, they should use those funds first if businesses need additional help. “

Johnson’s comment was similar to that of Senate Minority Leader Mitch McConnell, R-Ky., When asked about possible additional relief for the states.

Representative Dusty Johnson, RS.D., told Fox News he believes states, which still have plenty of relief money for COVID-19, should be the ones helping small businesses in need, and not the federal government. REUTERS / Ken Cedeno (REUTERS / Ken Cedeno / Reuters photos)

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“Every state is bursting with money. They’ve never seen so much money,” McConnell said. He added that any case of additional spending “remains to be seen”.

But many Democrats and some industry groups are very supportive of more COVID money for business.

“[Two-thirds] independent restaurants and bars that applied for the Restaurant Revitalization Fund never received assistance. Now they’re stuck in limbo, ”the Independent Restaurant Coalition tweeted. In recent days, his social networks have focused on a campaign for “#ReplenishRRF”.

“Millions of restaurants and small business owners still struggle to keep their businesses open. But some Republicans in the Senate are blocking legislation to provide additional funds,” said Senator Elizabeth Warren, D-Mass. “Congress must replenish the Restaurant Revitalization Fund.”

Senate Majority Leader Chuck Schumer of New York City has supported providing additional federal funds to small businesses like restaurants and concert halls. But his spokesman, Justin Goodman, told Fox News Republicans are blocking additional money for these companies. (AP Photo / Evan Vucci)

The biggest obstacle to any business spending program will be Republican obstruction in the Senate. Justin Goodman, spokesperson for Senate Majority Leader Chuck Schumer, DN.Y., said an effort led by Small Business Committee Chairman Ben Cardin, D-Md., Was struggling to get the 10 GOPs needed to meet the 60 obstruction voices. threshold.

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Goodman also said Democrats attempted to replenish the RRF in August, but Senator Rand Paul, R-Ky., Blocked the request for unanimous consent.

“Senate Dem[ocrats are] continue to look at what the needs are and how to meet them, ”Goodman said of the possibility of small business relief in the new year.

A senior House GOP official, meanwhile, told Fox News that corporate relief would not be needed if the Democratic state and local officials stop changing their COVID-19 rules and let businesses run.

“The December Letter for More Small Business Spending is Just Dem[ocrats] trying to cover up their a **** because of the pandemic rules supported by their party, the aide said. This letter had dozens of Democratic signatures and very few Republicans.

“Democrats used a textbook of injured businesses and then tried to make up for it by trying to pay them money throughout the pandemic,” the aide also said.

“How are you preparing for fiscal 2022 as a small business with no government certainty about closures and a proclamation from Fauci can turn it all around?” added the assistant.

Republican Senate candidate Senator Joni Ernst, right, speaks with a reporter after voting at Red Oak First Christian Church on Tuesday, November 3, 2020, in Red Oak, Iowa. (AP Photo / Charlie Neibergall)

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GOP opposition to new coronavirus-related spending could also focus on fraud from previous rounds of virus relief money. Senator Joni Ernst, R-Iowa, previously supported new financing for small businesses through the RRF.

But after several arrests by the FBI for COVID-19 rescue fraud and several examples of these funds being used for dubious purposes, which Ernst highlighted in his December “Squeal Awards”, the senator now says Congress should no longer spend money as long as there is no accounting for unspent funds from previous invoices.

“With the unique challenges our small businesses and restaurants faced during the pandemic, it’s important that they get the support they need to hire workers and be successful, but before the extra tax dollars are spent or lost. wasted on vacation, Congress and the administration need to take inventory of previous unspent COVID funds and see if it can be redirected to support small businesses that may need help, ”Ernst told Fox News in a press release.

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