Federal aid going out to Vt. towns and villages

A view from North Bridgewater Road in Bridgewater, Vt. (Gareth Henderson Photo)

Vermont’s cities, towns and villages are receiving a new round of federal pandemic relief funds over the next several days, and some payments have already come through.

The money comes from the local fiscal recovery funds tied to the American Rescue Plan Act (ARPA). From this funding, the state on Thursday disbursed another payment of $60.6 million to 276 eligible local governments, according to state officials. 

“These funds will play an important role for municipalities as we work to build stronger, more resilient communities,” Gov. Phil Scott said in a Thursday announcement. “In addition to the historic investments with state ARPA funds that I’ve proposed for climate change mitigation, housing, broadband, water and sewer infrastructure, and more, this municipal money can help strengthen support in these and other critical areas.”

This is the first of two rounds of funding for municipalities. In Woodstock, the town has received a check for $107,933, and the village is expecting a $44,911 payment, according to Municipal Manager William Kerbin. He said the town and village will receive the same amounts next year. The Village Trustees and Select Board held a recent joint meeting to discuss the funds, but that discussion was preliminary, Kerbin said, and no firm decisions have been reached on how to use the money. He expected another joint meeting in the next couple of months. 

Right now, municipalities are anticipating more guidance from the U.S. Treasury. 

“What we’re really waiting for is the final rule from the Treasury department to determine what we can use the funding for, the specific purposes and activities,” Kerbin said Thursday. 

On Aug. 5, Vermont received 50% of the $121 million of funds that the U.S. Treasury originally designated for distribution to the state’s 14 counties. The Treasury is required to distribute these funds to the states for distribution to local governments in two equal payments; the $60.6 million distributed Thursday represents the first round of payments. The county funds are distributed to eligible local governments based on the proportion of the municipality’s population to the county population, state officials explained. In separate funding, a total of $29 million was distributed to Vermont municipal governments in July.

The Vermont League of Cities and Towns and Vermont’s 11 regional planning commissions continue to assist cities, towns and villages with navigating federal rules related to this funding through webinars and multiple resources, including an ARPA resource webpage. For more information, visit https://finance.vermont.gov/covid-19-guidance.  

— Gareth Henderson

Business relief grants become available Monday

Echo Lake in Plymouth, Vermont. (Gareth Henderson Photo)

A new program offering a total of $30 million in grants to struggling Vermont businesses is set to launch on Monday. The money, approved by the Legislature, comes from Vermont’s share of relief funding in the American Rescue Plan Act.

The Economic Recovery Bridge Program is the latest local effort to help businesses recover from the financial impact of the pandemic. The assistance is meant for businesses who have not received state and federal relief due to eligibility constraints, and who can show a continued loss of revenues due to the COVID-19 pandemic. To the extent that funds remain available, the program can also help businesses that have suffered a net loss even after receiving state or federal aid.

Gov. Phil Scott said this funding is key to Vermont’s economic recovery, calling small businesses the “backbone of our economy.” 

“These grants will provide critical relief in the short term, allowing them to rebuild a stable foundation for their economic futures,” Scott said in a statement.  

PJ Skehan, executive director of the Hartford Area Chamber of Commerce, said Friday that a number of chamber members have already received some form of relief, but he thought this money could be a crucial resource for any businesses whose money is running out at this point.

“Vermont overall has done a great job getting these funds out to where they’re needed,” Skehan said.

Joan Goldstein, commissioner of the Department of Economic Development, emphasized the need to help businesses facing shortfalls as the state turns the corner.

“As we move past the pandemic, these funds are intended to bridge those final gaps, so that businesses can recover and thrive in the months and years ahead,” she said in the program’s announcement this week. 

Eligible businesses must have their primary place of business in Vermont and demonstrate that the business experienced a net tax loss in 2020, greater than any net loss reported in 2019 via submitted federal tax returns.

Grants will be issued on a first-come, first-served basis and priority will be given as follows:

• Priority for the first 30 days of the program will be given to businesses that have not received or do not have pending applications for any state or federal financial assistance in 2020 or 2021, including but not limited to:

  • Paycheck Protection Program Loans and Grants

  • Economic Injury Disaster Loans and Grants

  • Vermont Economic Recovery Grants

  • Sole Proprietor Stabilization Program Grants

  • Healthcare Provider Grants

  • Restaurant Revitalization Grants

  • Shuttered Venue Grants

  • Vermont Agricultural Grants

• After the initial 30-day window, second-tier priority will be given to businesses who suffered a 2020 net tax loss and can still demonstrate an adjusted net loss after adding back the amounts of non-taxable assistance received in 2020 and 2021.

Full program guidelines in several languages and frequently asked questions are online at the state’s COVID-19 Recovery Resource Center. The application portal is set to open on Monday, and there will be a support line available at 802-828-1200 once the portal opens.

A recording of Friday’s webinar about the program is available on the commerce agency's website.

— Gareth Henderson

Vermont COVID-19 aid bill becomes law

The hills around Woodstock, Vermont, last summer. (Gareth Henderson Photo)

A $104 million COVID-19 relief bill has become law without Vermont Gov. Phil Scott's signature. The legislation includes $10 million in grants for struggling businesses, along with aid for housing, mental health services, and a range of infrastructure needs.

Scott reportedly declined to sign the bill, in part, because one of its provisions taxes some business loans under the federal Paycheck Protection Program. But the governor allowed the plan to become law because it "contains urgently needed funds for Vermonters," Vermont Public Radio reported. One part of the bill excludes the first $10,200 of unemployment benefits from 2020 from taxation, in accordance with a federal tax change this year.

In other Tuesday news, the state reported its COVID positivity rate has further dropped to 1.5%. Daily case counts are on the decline, in large part because the cases among younger age groups in Vermont recently dropped by one-third. Cases on college campuses are also down.

Additionally, federal officials hope to have some recommendations on Friday about resuming the Johnson & Johnson vaccine, with some restrictions. A pause in administration of that vaccine has continued this week in Vermont, as health experts are looking into the implications of six cases of rare blood-clotting in people who had the vaccine.

This week, Vermont's supply of the Moderna and Pfizer vaccines will be level, while pharmacies in the federal pharmacy program will see an increase in those doses across the country. That means 8,000 more doses for pharmacies in Vermont.

On Monday, all Vermonters age 16 and older became eligible for COVID vaccinations, and 47,000 Vermonters age 16-29 had signed up to get their shots as of Tuesday morning.

— Gareth Henderson

New funding aims to provide healthy food for students

A school bus heads through Woodstock Village in Vermont recently. (Gareth Henderson Photo)

A new program is being launched to ensure students continue to have access to healthy meals during the pandemic. 

The federal government recently allowed 34 states, including Vermont and Massachusetts, to provide a temporary food benefit to pre-K-12 students who would normally receive free and reduced-price meals at school. This new Pandemic-EBT (P-EBT) benefit is meant to replace the value of school meals that children would have received earlier in the year, had they been at school.

In Vermont, households eligible for this funding should receive it by April 29. At the state’s press briefing on Friday, Education Secretary Dan French thanked the many people who helped get this program off the ground.

“This has been a very complex program to implement, and I want to thank the many school staff around the state who worked quickly to collect the required data from households and submit it up to the state level,” French said. “This quick work on their part made it possible for us to turn this program around fairly quickly and get the benefits deployed, and we really appreciate their efforts.”

The amount of the P-EBT benefit is based on the student’s mode of learning in the months covered. For example, the amount is $119.35 per student for a remote learning month, $70.61 per student for a hybrid learning month, and no benefit for an in-person learning month. The money is provided through an electronic benefit card to be used for food purchases at participating grocery stores, convenience stores, online retailers and farmers markets. This program has no impact on eligibility for the free meals currently available through schools. 

“Families are encouraged to use both resources to make sure students have access to healthy meals,” French said. 

About $14.7 million in P-EBT benefits will soon be issued to 21,844 Vermont households for the time period of September 2020 through February 2021. That impacts about 33,000 students, nearly 42% of the state’s public school population. Vermont had 78,928 students in pre-K-12 as of February.

Another P-EBT benefit will be provided in July, to cover the months of March through June 2021.

— Gareth Henderson

Gov. Scott outlines relief plan; lawmakers await details

Downtown Woodstock, Vermont, on Friday evening. (Gareth Henderson Photo)

Vermont is getting over $1 billion in COVID-19 relief funding from the federal government, and Gov. Phil Scott laid out his priorities for it this week. 

These include $250 million to expand broadband coverage in the state; $250 million for housing; $200 million to reduce greenhouse gas emissions and enhance climate change resiliency; $170 million for major water, sewer and stormwater system upgrades; and $143 million for economic development including helping small businesses rebound from the pandemic. 

The governor placed a strong emphasis on the state’s significant housing needs, noting that because of the pandemic, nearly 2,000 Vermonters experiencing homelessness have been living in hotels and motels over last year. 

“My plan would significantly increase shelter capacity and construct permanent housing for those in need,” Scott said at his Friday press briefing. “It also builds more than 5,000 housing units to help middle-income families who’ve been priced out of the market.”

Scott said there are many priorities he and the Legislature agree on regarding this money, but he said lawmakers will also be offering their own ideas about how to spend it. 

“I look forward to working with them in order to take advantage of this once-in-a-lifetime opportunity to make monumental and transformative investments to build a stronger future,” he said.  

In a Saturday interview, Senate President Pro Tempore Becca Balint said there was a “fair amount” in Scott’s plan that lawmakers supported, including broadband, housing and climate change. 

“But of course we want to know more about the details,” Balint said. 

She said one concern from the Senate side was that the governor didn’t include workforce training, though it’s been a concern of his in the past. Balint specifically mentioned those workers who need access to certificate programs or skills training to advance their careers, but not a full degree. 

“We have a worker shortage pretty acutely here in Vermont,” she said. “There are a lot of jobs that are going unfilled.” 

Balint also said adding funding for mental health services and more targeted help for businesses should be part of the plan. She often hears from hospitality and tourism businesses who are worried about how much longer they can hang on, despite Scott’s phased reopening plan which aims to lift all pandemic restrictions by July 4. Balint said those businesses were expecting more from the new federal COVID relief dollars.

“For the most part, what I’ve been hearing is that people are comfortable with this (reopening) timeline,” Balint said. “They just want to make sure that when the spigot is fully open, they’re still going to have a business.” 

One bill looking to help with that is a $100 million coronavirus relief spending package previously passed out of the Senate, which includes $10 million for business grants. The House hopes to get that bill to the governor’s desk on Friday, Balint said.

— Gareth Henderson

More help available for Vt. sole proprietors

The Ottauquechee River in Woodstock, Vermont. (Gareth Henderson Photo)

As COVID-19 relief efforts continue nationwide, a program in Vermont is supplying an additional $1.6 million in grants for sole proprietors. 

That’s the second round of funding for a statewide block grant program administered by the Brattleboro Development Credit Corporation (BDCC) and Two Rivers-Ottauquechee Regional Commission (TRORC). The first round of economic relief grants was awarded to 157 businesses totaling $1,385,000 between August 2020 and March 2021. The program is supported by federal dollars.

The new round of grants comes at a time of great need, when many businesses are looking to get to the other side of winter amid the pandemic. 

“We know this money will help many more businesses but will come nowhere near the total need that is out there,” said Bobbi Kilburn, of BDCC, in Wednesday’s announcement.

Peter Gregory, of TRORC, noted the ongoing efforts of the Legislature to provide more aid. For example, lawmakers are working on a fast-track spending bill to provide much-needed relief to individuals, families and businesses. 

“We are encouraged that state legislators are currently considering adding significant state dollars to these modest federal funds in order to support small- and medium-sized businesses across the state,” Gregory said in the official statement.

This second round of funding will offer grants between $1,500 and $10,000 to qualifying sole proprietors on a first come, first served basis. Applications will open on April 5 and run through May 26. 

Applicants must demonstrate financial need through business expenditures which have not yet been reimbursed through other relief programs. Expenditures may represent expenses incurred between March 1, 2020, and March 31, 2021, or ongoing expenses in order to “pivot” business operations due to the pandemic. The program is funded by the U.S. Housing and Urban Development’s Community Development Block Grant program. The federal funds are passed through the Vermont Agency of Commerce and Community Development.

Eligibility criteria has been altered for this second round of grants to include both sole proprietors with no W2 employees and S-Corp owners with no W2 employees. Other key eligibility criteria include that the applicant must:

• Be from a Low to Moderate Income household per federal guidelines, which is defined as having a household income of 80% or below the area median income for your county.

• Be a for-profit entity, providing goods or services to clients.

• Have a physical establishment in Vermont.

• Have pre-pandemic or current gross annual revenues of over $24,450 for the business.

• Have been legally established prior to March 15, 2020.

Webinar training to explain the online application process will be available on April 1. To sign up for the webinar and learn more about the program breakdown, full eligibility requirements, application materials and timelines, contacts for language translation services, and to view technical assistance recorded trainings, visit the program website: https://www.vermont-cdbg-cv.com/

TRORC will be administering funds for the counties of Windsor, Orange, Caledonia, Essex, Orleans, Franklin, Grand Isle, and Chittenden. BDCC will be administering funds for the counties of Windham, Bennington, Rutland, Addison, Washington, and Lamoille.

Woodstock Village budget approved 

Voters approved the proposed $1,345,829 Woodstock Village budget proposal at the polls on Tuesday, in a 41-0 tally. The budget, which has a slight increase over last year, includes $578,655 to be raised by taxes. 

Three Woodstock Village Trustees running unopposed for reelection were also on the 2021 ballot. Board Chair Jeff Kahn will be serving a new three-year term, William Corson a two-year term and Brenda Blakeman a one-year term. Blakeman and Corson were each appointed to the board last year; Kahn has served multiple terms as a village trustee.

— Gareth Henderson

Governor encouraged by efforts on Vt. relief bill

The Woodstock Village Green in early February. (Gareth Henderson Photo)

Vermont lawmakers are currently working on a $62 million COVID-19 relief bill, and on Tuesday, Gov. Phil Scott told reporters he was encouraged by the proposal’s progress. The House plans to complete its work on the package and send it to the Senate later this week, according to news reports. 

Highlights from the bill include $10 million in grants for businesses that didn’t qualify for federal COVID relief; $1.3 million for the Reach Up program to provide one-time payments for families in need; $1.4 million for the Vermont Foodbank; and $5 million for the state’s mental health system. The legislation also fast-tracks $10 million in funding for the Vermont Housing and Conservation Board and another $10 million for trail networks and outdoor recreation infrastructure — both elements of the governor's budget proposal. 

At Tuesday’s press briefing, Scott praised lawmakers for their work on the new bill. He noted the package had money for state park infrastructure projects, and he was pleased with the overall proposal.

“I don’t see any showstoppers at this point,” Scott said. “I think it’s great news for Vermont, because these are projects that can hit the ground running, that can put a shovel in the ground almost immediately.”

The $62 million package was approved Monday by the House Appropriations Committee, according to media reports. Funding for the bill comes from one-time state money and about $13 million left over from the federal COVID relief dollars Vermont received in 2020.

States are eager for help from the next federal relief package making its way through Congress. The U.S. House is expected to vote on the Biden administration’s $1.9 trillion relief bill later this week.

— Gareth Henderson

Important weeks ahead for next COVID relief bill

A sunset view of the Ottauquechee River in Woodstock, Vermont. (Gareth Henderson Photo)

Work continues on the Biden administration's COVID-19 relief plan, and U.S. Treasury Secretary Janet Yellen is hoping for significant progress in the next two weeks.

The $1.9 trillion proposal could help the U.S. return to full employment in a year, Yellen told CNBC on Thursday. She said a plan of that size is needed to weather the economic storm of the pandemic. Some Republicans, who proposed a $618 billion package Democrats rejected, fear "overheating the economy" and causing inflation.

“Inflation has been very low for over a decade, and you know it’s a risk, but it’s a risk that the Federal Reserve and others have tools to address,” Yellen told CNBC. “The greater risk is of scarring the people, having this pandemic take a permanent lifelong toll on their lives and livelihoods.”

The administration's current proposal would provide $1,400 direct payments to most Americans and would begin gradually increasing the U.S. minimum wage to $15 per hour. The bill also has significant funding for vaccine distribution and COVID-19 testing, and it contains state and local funding that governors of both parties have been requesting for months.

The minimum wage increase, enhanced unemployment insurance and an expanded child tax credit in particular have drawn criticism from GOP lawmakers, Business Insider reports. COVID-related unemployment benefits start expiring on March 14.

Conversations continue between the Biden administration and some Senate Republicans about the relief bill, though the White House proposal has won no Republican support in Congress so far, according to ABC News.

Maryland’s Republican Gov. Larry Hogan, who met with President Joe Biden last week, warned the president against passing the relief bill with only Democratic support — which the majority could do. According to ABC, Hogan told Biden doing that may complicate future work on major issues like infrastructure or rebuilding the economy.

"I said to him, just because you can do something doesn't mean you should," Hogan told ABC News on Sunday. "And I said that I thought that it was good for his agenda over the next four years if he started out by getting some Republicans on board in a bipartisan way."

House leadership is hoping for a relief bill vote in that chamber by the end of next week.

According to a recent CBS News/YouGov poll, 83% of Americans approve of Congress passing a new economic relief package.

— Gareth Henderson

New COVID-19 relief bill taking shape

A view from Wild Apple Road in Pomfret, Vermont. (Gareth Henderson Photo)

While the impeachment trial consumed the past week in the Senate, lawmakers in the House have been crafting the next COVID-19 relief bill. 

U.S. Rep. Peter Welch, Vermont’s lone congressman, is a senior member on two of the House committees working with President Joe Biden’s $1.9 trillion relief proposal. Those would be Energy and Commerce, and Oversight and Reform, and they both voted to approve key components of the package.

“In my committees, we worked to make President Biden’s bold plan tangible and focused to help Vermonters and all Americans get through this unprecedented pandemic,” Welch said. “I am pleased that we produced legislation that will help Vermonters contain and crush this terrible virus, by including robust state and local funding, billions of dollars for vaccine production, distribution and COVID testing, and help for the most vulnerable among us to make it through the winter.”

The provisions passed by the committee include: 

• State and Local Coronavirus Relief Funds: Vermont will receive an estimated $961 million in state and local funds.

• $7.5 billion for Centers for Disease Control and Prevention for national vaccine distribution and administration, including assistance to state and local health departments.

• $5.2 billion for the Biomedical Advanced Research and Development Authority (BARDA) to develop and purchase additional vaccines for the U.S.

• $4.5 billion for the Low Income Home Energy Assistance Program (LIHEAP). LIHEAP is a vital lifeline to help Vermonters heat their homes during the cold winter months.

• $46 billion for COVID-19 testing, contact tracing and mitigation measures around the country.

• $7.6 billion for Community Health Centers throughout the U.S. to assist with COVID-19 response.

• $7.6 billion for the Federal Communications Commission’s (FCC) E-Rate Program to expand access to broadband in the U.S. and allow for the purchase of connected devices for students and library members.

The COVID relief package is expected to pass the House in the coming weeks before being taken up by the Senate.

— Gareth Henderson 

A fact sheet on the Committee on Energy and Commerce’s work is here. A fact sheet on the Committee on Oversight and Reform’s work is here.

Congressman: Relief bill ‘about survival’

A wintry view of River Road in Woodstock, Vermont. (Gareth Henderson Photo)

After months of delays, the U.S. Congress rapidly approved a new COVID-19 relief package on Monday night. As of Tuesday evening, it was unclear if President Donald Trump would sign it into law; multiple news outlets reported the president wanted to see larger direct stimulus payments in the bill, among other changes.

The $900 billion relief package was combined into one bill with a $1.4 trillion measure to fund the government through Sept. 30. A bipartisan group of House and Senate lawmakers played a central role in the negotiations, leading to the new relief bill aiming to help businesses and families reeling from the financial impact of the pandemic. 

At a Tuesday press conference with Vermont Gov. Phil Scott, U.S. Rep. Peter Welch, the state’s lone congressman, noted the federal CARES Act that passed in March was a “lifeline” for businesses and families, and people need that same kind of assistance now. 

“The obligation of the federal government is to be that fiscal backstop, to help our individual citizens, our families, our small businesses and our state to get from here to there,” Welch said. 

For many small businesses, he noted, this is not about stimulus, it’s about survival. 

“I think, ultimately, that’s what brought Congress together over what had been a long and prolonged negotiation,” Welch said. 

From the relief measure, Americans will see a new round of direct stimulus payments, supplying $600 per individual and $600 per child. The payments are for individuals with incomes of up to $75,000 and couples filing jointly who make up to $150,000. The measure also funds $300 per week of a federal unemployment supplement for 10 weeks. It had been set to expire Dec. 26.

The bill nationwide also adds $284 billion in additional payroll protection for businesses, $8 billion for vaccine distribution, and a month-long extension of the federal eviction moratorium. On the education front, K-12 public schools get $54 billion in the legislation, and nonprofit public colleges and universities will see $22 billion. 

Also on Tuesday, Welch acknowledged the new relief package did not include aid to state and municipal governments — something Scott and other governors have been pushing for. That aid was a sticking point when negotiations between Democratic leaders and the White House stalled over the summer. Welch said he and the incoming Biden administration are committed to getting further aid to state and local governments, which he said are better positioned than Washington to allocate relief funds in their communities. 

“This will be something that we’ll continue to pursue,” Welch said. 

Americans may begin to see their direct stimulus payments as soon as early next week, according to NBC News, in a report noting the government is better prepared to get the money out quickly this time. President-elect Joe Biden has pledged to propose a second COVID-19 relief bill after he takes office next month. 

— Gareth Henderson

U.S. House passes revised relief bill

A recent autumn view from High Pastures Road in Pomfret, Vermont. (Gareth Henderson Photo)

A $2.2 trillion relief package passed the U.S. House of Representatives late Thursday, in the latest bid by lawmakers to help Americans and the economy amid the pandemic. But the proposal faces headwinds in the Senate.

The new bill is an updated version of the Heroes Act, which the House passed earlier this year. Throughout the summer, the White House and Democratic leaders repeatedly came up short in their efforts to negotiate the first relief deal since the CARES Act.

U.S. Rep Peter Welch, of Vermont, voted for the new relief plan, saying now was a time for bold action. Welch championed two initiatives included in the bill: a $120 billion grant program for restaurants, and a $10 billion fund for independent theaters and live music venues. 

“The economic pain of the coronavirus pandemic is still being felt across our state," Welch said in a statement. "Vermont businesses needed help in May, and they need it even more today. " 

The House's new $2.2 trillion bill includes these key provisions, among others:

• A second round of $1,200 economic impact payments to individuals.

• Funding to restore the $600 weekly federal unemployment payments through January.

• $12 billion to make sure that students have broadband so that they can learn at home.

• More than $800 million for Vermont state and local governments.

• $225 billion for K-12 schools and colleges to open and operate safely during the pandemic.

The bill also funds additional COVID-19 testing, the Postal Service, and efforts to combat food insecurity.

Though the House bill is a note of progress, it is unlikely to make it through the Senate, where the Republican majority remains concerned over the total amount of the aid, according to CNBC. This was also a contention over the summer, as the White House preferred a bill in the $1 trillion range; the original Heroes Act came in at over $3 trillion. 

Before the latest bill passed the House, Treasury Secretary Steven Mnuchin and Democratic House Speaker Nancy Pelosi spoke by phone on Thursday, and, though there was no new deal between them, they agreed to continue negotiations, CNBC reported. The need for significant aid to state and local governments continues to be a key point of disagreement. At this point, the House has departed for its October recess, as a CBS report noted.

For months, lawmakers of all political persuasions have pressed for more relief from Congress, as economic pressure deepens for individuals and businesses amid the pandemic, and prior aid from the CARES Act runs thinner. On the road ahead, listening will be key. Hopefully the great needs of this hour can inspire more of that approach, as the work to move this legislation forward continues. 

— Gareth Henderson

U.S. Senate eyes new relief package

Clouds hide the late-afternoon Vermont sun in Woodstock by Route 12. (Gareth Henderson Photo)

The U.S. Senate is expected to discuss a new pandemic relief package next week, and Sen. Patrick Leahy of Vermont and others are pushing for more flexibility for states in how to spend the money. 

Vermont has received $1.3 billion in federal COVID-19 relief funding, and the money must be spent by Dec. 31, according to the rules governing the CARES Act passed earlier this year. Speaking with Vermont Public Radio, Leahy agreed with Gov. Phil Scott that states should have more of a say in how they use these funds.

“I've heard the same complaint from other states,” Leahy told VPR Wednesday. “I think we should have a lot more flexibility. Republicans and Democrats I've talked to are for that."

Leahy, vice chairman of the Senate Appropriations Committee, said in the same interview he sees bipartisan support for extending special unemployment aid, providing direct grants to taxpayers and giving much-needed relief to states to plug revenue gaps.

Considering the news this week, there still seems to be a desire on both sides to craft a new relief package, just very different ideas about how to achieve it. A recent call between Treasury Secretary Steven Mnuchin and Democratic House Speaker Nancy Pelosi went nowhere, according to The Washington Post. 

The overall size of the new legislation remains a point of contention. The Democrat-led House passed the $3.4 trillion Heroes Act in May, hoping that would become the second COVID-19 relief bill coming out of Congress. The Senate did not take up the bill, and stimulus negotiations between Democratic leaders and White House officials stalled in recent weeks. On Wednesday, the Washington Post reported Senate Republicans continue to work on a smaller plan of about $1 trillion — which may hit the Senate floor next week. The GOP has so far rejected Democratic suggestions of a larger amount, the Post stated.

Despite the steep challenges facing the country, there remains the opportunity for both sides to come together and start the work of crafting this legislation. As Congress returns from its summer recess next week, hopefully discussions in the Senate will lead to a positive result for Vermonters and all Americans. Many are waiting for the moment a new relief bill reaches the finish line.  

— Gareth Henderson

Governor unveils $133M relief plan

Sole proprietors, the hospitality sector and some nonprofits are among those that would benefit from a new proposal by Vermont Gov. Phil Scott using federal pandemic relief money.

The $133 million economic aid plan was unveiled Friday and awaits the Legislature’s consideration when lawmakers return Aug. 25 to resume work on the fiscal-year 2021 state budget.

The governor’s new relief proposal draws on part of the $1.25 billion the state received from the federal CARES Act. The plan focuses on four key areas of continued investment to help Vermonters struggling under COVID-19’s financial impact:

• Additional funding for Economic Recovery Grants to help fill gaps in the original program, to include sole proprietors, certain types of nonprofits, new businesses, and those with less than 50% loss that is sustained over a longer period. ($23 million)

• Targeted hospitality and tourism funding to address areas of need as fall and winter approach and travel restrictions and capacity limits remain in place. ($50 million)

• $150 dollars to every Vermont household as part of a buy local campaign to spur economic activity that supports local businesses. ($50 million)

• Economic Development and Tourism Marketing funds that will, within the context of COVID-19, leverage social, earned, and owned media to bring more out-of-state revenue. ($10 million)

For more details, visit this link to information from state commerce officials.

In a statement on Friday, Scott said this is the latest effort by his administration to keep the economy moving as Vermont confronts major challenges.

“As we navigate this pandemic, we must ensure our economy stays on track so it can thrive in the future,” he said. “We believe addressing recovery grant gaps, supporting hardest hit sectors with targeted support, financially empowering Vermonters to buy local products, and marketing our state as a place to live, work, and play can help us get through the challenging months ahead.”

Many states continue to roll out proposals backed by CARES Act money to help businesses in urgent need and maintain jobs. But another factor is a stipulation that states must use CARES Act funding by the end of the year, or lose the money. Many states had hoped for greater flexibility, but there has been no such help from Washington. With remaining CARES Act funds, we hope new rounds of relief funding in Vermont and other states are useful supports for businesses trying to sustain their operations.

— Gareth Henderson

Relief bill talks edge forward

Clouds dot the landscape in this view from the afternoon shade of North Bridgewater Road in Bridgewater, Vermont, on Friday. (Gareth Henderson Photo)

Talks on pandemic relief legislation in Congress have made some progress, but there’s much more work to be done. 

That was the first weekend update on these important negotiations, which many Americans hope will lead to more unemployment support, further aid for struggling businesses and financial help for states. Meanwhile, the enhanced federal unemployment benefit of $600 per week has expired, impacting 30 million Americans and adding urgency to the negotiations. That gap in emergency assistance and concerns over rental evictions are central issues to the talks. 

On Saturday, Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows met for over three hours with Democratic leaders, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer. 

“I think we would characterize the discussions as the most productive we’ve had to date,” said Mnuchin said, speaking to reporters. 

Schumer and Pelosi agreed with that assessment in their comments to the media after the meeting. 

“I’d call it: progress, but a ways to go,” Schumer said. 

Jarring economic news added urgency to these talks as well. Statistics have been troubling, but none more so than the recently announced plunge in gross domestic product of 32.9 percent, between April and June. That’s the nation’s largest decline in GDP since the 1940s — and a reflection of the toll the pandemic has taken on the economy. It’s also a stark reminder that efforts to address the pandemic, and their effectiveness, are tied to economic health.

On that note, Vermont continues to have the lowest COVID-19 caseload in the nation. After halting reopening efforts for weeks amid national surges in cases, the state increased the capacity limit on retail stores from 25 to 50 percent on Saturday. That was the same day Vermont’s statewide mask mandate went into effect. 

Gov. Phil Scott announced the capacity limit increase on Friday, noting the state’s COVID-19 data and the start of the mask requirement.

“While we still have much more work to do to reopen our economy, I still think the cautious approach we’re taking is the right one,” Scott said. 

The governor also announced that the state’s emergency response team will be distributing 200,000 free masks to towns, emergency responders and community partners throughout Vermont.

Clearly, much depends on the next federal relief package. Businesses, individuals and states require much more assistance to move forward in the current environment. Fortunately, though, on the health front, Vermont continues to hold firmly to its progress against the coronavirus. That is hopeful news as schools move ahead on their reopening plans to start the academic year on Sept. 8. 

As that process continues, the impact of continued visitor traffic into the Green Mountains will be on many minds. But so far, the state and so many communities have shown thoughtful, measured and steady leadership, and Vermonters have banded together to keep each other safe. Those efforts can still have a powerful impact and help meet the challenges of the coming weeks, for everyone’s good.

— Gareth Henderson

Relief bill draws critics, including states

The debate is churning in Washington following the Senate GOP’s proposed $1 trillion pandemic relief bill announced on Monday.

The plan offers a second round of $1,200 direct stimulus payments to taxpayers, as well as funding for school reopenings, the Paycheck Protection Program, national vaccine efforts and COVID-19 testing. 

But Senate Democrats heavily criticized the bill, saying the funding was insufficient and should be far greater, noting the $3 trillion stimulus package the House passed in May. Another hotly debated topic this week is enhanced federal unemployment insurance, which the new Senate bill drops from $600 to $200 per week. In October, 70-percent wage replacement would go in its stead.

U.S. Sen. Patrick Leahy, of Vermont, said the Senate bill offers a “paltry sum” compared to the vast health and economic needs caused by the pandemic nationwide. He also criticized the absence of funding for state and local governments.

“Their budgets are stretched to the breaking point as revenues plummet and they struggle to support their people and the public servants on the front lines of this crisis,” Leahy said in a statement. “Without federal support, state and local governments have been forced to lay off 1.5 million of the very public servants countless Americans are relying on right now.” 

Those sentiments have echoed throughout New York, New Jersey and numerous other states trying to keep funding flowing to households, businesses and key community services. In many cases, prior federal relief funding has acted as the last line of defense against closures and bankruptcies. Now, with all states face daunting budget shortfalls, many continue to demand urgent assistance. Vermont’s budget gap is over $300 million; New York’s is more than $13 billion.

Leadership in the Senate and House hope to reach an agreement on the size of this relief package later this week, according to Vermont Public Radio. Many hopes ride on those negotiations, and the urgency is palpable. In this moment, in this pandemic, constructive progress has never been more important, and there remains time for bi-partisan work to take place. It's our hope that this can be accomplished, so that states, businesses and individuals get the help they greatly need, in a way that benefits our local, regional and national communities.

— Gareth Henderson

Pandemic relief bill introduced

Negotiations are underway in the U.S. Senate after a new pandemic relief package was introduced by Republican leadership Monday.

The Senate GOP's bill proposes a new round of $1,200 stimulus checks to taxpayers and $105 billion to help schools and childcare centers reopen, among other provisions, according to CNBC. In a contentious move, it reduces the weekly $600 in extra federal unemployment benefits to $200 per week. For Vermonters, that $600 benefit expired on Saturday. In October, the enhanced unemployment insurance would be set at 70 percent of a worker's wages, at a maximum of up to $500 per week. 

The legislation also has more funding for national vaccine development, the Paycheck Protection Program and state aid for COVID-19 testing. However, it doesn't include a provision state leaders had pushed hard for: direct aid to state governments, at a time when revenue gaps loom very large. 

When Vermont lawmakers return to the State House on Aug. 25 to complete the fiscal-year 2021 budget, they face a revenue gap of over $300 million. In a recent interview, Vermont Senate President Pro Tem Tim Ashe said federal assistance was essential. 

"It’s a huge difference-maker," Ashe said. "At the beginning of the COVID crisis, I was publicly saying, 'This is why we have a federal government to step up and support states in times like this.'"

Ashe noted the state has reserves which help position it well, but the state would still face revenue gaps even with tapping those funds. Currently, those reserves stand at $230.2 million, according to the Legislative Joint Fiscal Office.

Ashe, who is currently running for lieutenant governor, said schools reopening safely, monitoring cross-state travel and economic impact on employers are among Vermonters' main concerns.

"This has been excruciating for employers," Ashe said. "There’s a lot of that wait-and-see anxiety about how safe it’s going to be from a business point of view to kind of resume some semblance of normal."

Clearly, the new round of direct payments to individuals and new funding for the Paycheck Protection Program for employers will be welcome news. But states will face some very challenging decisions if Congress is unable to agree on a way to provide emergency aid to state and local governments, which provide many important services to their communities. Hopefully, negotiations in Washington will help make that funding a reality as lawmakers look to lead their states forward.

— Gareth Henderson

Helping the states

As state budgets face enormous shortfalls, one of the greatest needs in the country is federal aid for states. 

That’s one of the main sticking points of the new coronavirus relief package as Congress resumes work this week after a summer recess, according to National Public Radio. In Vermont, the projected shortfall for fiscal year 2021 is over $400 million — that’s what the Legislature must contend with when it reconvenes in August.  

In Congress on Monday, the clash of opposing sides was almost immediate, when it came to the new pandemic relief bill. A point of contention is whether to allow states to use relief funds for plugging revenue gaps, which are certainly on the increase. One of the biggest concerns is sustaining annual funding for important state-funded services, many of which impact the most vulnerable among us. In related news: Discussions are underway about how to sustain the $600-per-week federal direct payments to individuals on unemployment benefits, NPR reported. Those payments are set to expire on July 31. The U.S. House has passed a bill extending the benefits.

That work comes amid a backdrop of national challenges, making it more important than ever to maintain a united, collaborative approach to major issues here in Vermont. And we have a good basis for doing so. For the most part, Vermonters appear to be open to the safety precautions given by the state amid the pandemic. Part of the reason for that is the measured approach in delivering those guidelines to the public, with regular updates on the state’s progress. As of Monday, Vermont’s COVID-19 data continued to show good trends; the state had no coronavirus-related deaths in the last 30 days.

Despite the often troubling national rhetoric, we can have confidence in the progress Vermont has already made, and join together in taking more forward steps as a statewide community. These start with simple steps, even beyond safety measures. They include making sure we stay connected with our neighbors, make sure they have what they need, and, sometimes, talk through some challenges. What’s been true, remains true: We’re in this together.

— Gareth Henderson