Rep. Huffman Joins the Call for Broader, More Aggressive Economic Relief Initiatives

Huffman Announces Support for Paycheck Recovery Act and Worker Relief and Security Act

May 27, 2020

San Rafael, CA – Today, Representative Jared Huffman (CA-02) announced his support for two bills that ensure that urgently needed relief continues to be available to Americans impacted by the novel coronavirus pandemic. Rep. Huffman is now a cosponsor of the Paycheck Recovery Act, led by Rep. Pramila Jayapal (WA-07), and the Worker Relief and Security Act, led by Rep. Don Beyer (VA-08). 

“House Democrats have taken swift, decisive action to protect the lives and livelihoods of people – but it is clear that more is needed to see the country through the extent of this pandemic,” said Rep. Huffman. “The bills proposed by Rep. Jayapal and Rep. Beyer make the smart, aggressive investments the country needs to weather this pandemic. Helping employers keep their workers on the payroll, and ensuring that expanded unemployment insurance is connected to economic triggers, are two crucial pillars in the roadmap to economic recovery, and I’m glad to join in support of these timely initiatives that focus on families and workers first.”

Key features of the Paycheck Recovery Act include:

  • Businesses, nonprofits, and state and local governments of all sizes that are facing COVID-19 related revenue losses would receive grant payments covering the full wages of workers earning salaries up to $90,000, ensuring employers can rehire those laid-off or furloughed since March 1. It does this in a quick and direct manner by utilizing existing payroll tax infrastructure instead of relationships with banks and lending institutions. The program would also cover independent contractors, domestic workers, and gig workers. 
  • Employers must keep workers on payroll and benefits and meet other conditions, such as no stock buybacks and limiting CEO pay. 
  • The program automatically renews until the nationwide unemployment rate remains below 7 percent for three months in a row. 
  • If an employer’s tax return for 2020 shows that they did not experience a 10 percent decline in gross receipts compared to 2019, the employer will repay the grant as a no-interest loan.
  • Text of the legislation is available here. A white paper is also available here.

The Worker Relief and Security Act would tie ongoing expanded unemployment benefits to the public health emergency and economic assistance, by specifying that workers will face no limits on the benefits they can currently receive under the CARES Act for the duration of an economic crisis:

  • A worker who exhausts their traditional unemployment compensation benefits (funded by the state) will be able to receive additional unemployment benefits fully financed by the federal government without limit until 26 weeks after the end of extreme social distancing.
  • A worker receiving Pandemic Unemployment Assistance (PUA) benefits for those who do not qualify for traditional UI will also not face limits on the number of weeks they can draw benefits until 26 weeks after the end of the Public Health Emergency.
  • Workers receiving the extra $600 in weekly benefits will continue to receive it until 30 days after the end of the President’s emergency declaration, after which it will begin to phase down over 13 weeks.
  • The bill would also fix the PUA program to ensure workers who fall between the cracks of the traditional unemployment assistance do not fall between the cracks of the program meant to support them.
  • The draft legislative framework is available here, with a factsheet here and explanatory charts here.

###