House committee sends COVID-19 economic aid package to floor

Due to the COVID-19 pandemic, many Minnesotans need help in the form of mortgage and rent protection, emergency small-business loans, and money to improve the infrastructure for distance learning and telemedicine.

The House Ways and Means Committee constructed a so-called “COVID-19 Economic Security Act” on Friday by combining three House bills together:

• HF168 (Schultz) — temporary 15% pay increase for personal care assistants during the pandemic;
• HF1507 (Stephenson) amended by a delete-all amendment — $55 million in small-business emergency loans; and
• HF4541 (Hausman) — $100 million for eviction and mortgage foreclosure protection/emergency housing assistance.

HF1507 became the vehicle for the other two bills when HF4541 and HF168 were added to it. Another amendment was successfully offered by Rep. Rob Ecklund (DFL-International Falls), which, initially offered as HF3029, would add $10 million for grant programs to fund distance learning, broadband access and equipment for telemedicine.

The committee passed the all-encompassing bill, as amended, on a party-line 18-7 vote and sent it to the House Floor. There is no Senate companion.

Supporters spoke of the urgency to help in the different areas.

“During this uncertain time, the last thing we want is to create more homelessness,” Rep. Alice Hausman (DFL-St. Paul) said in a statement. “This pandemic has created unimaginable heartache and we don’t want to add to the hardship by allowing renters and homeowners to slip through the cracks. We have the resources to ensure all Minnesotans will continue to be able to stay in their homes during this very stressful time.”

“Minnesota PCAs perform challenging work day in and day out to ensure people with disabilities, older adults, and others who may be vulnerable can live with dignity,” Rep. Jennifer Schultz (DFL-Duluth) added in the statement. “The people providing these critical services put their hearts and souls into their jobs. Especially during this pandemic – when they are putting themselves at higher risk of exposure – they deserve to be paid a living wage.”

Appropriations in the bill are expected to come from federal grants as part of the recently enacted federal Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Rep. Lyndon Carlson Sr. (DFL-Crystal), the committee chair, said that while he’s sure the state will qualify for federal funds, the newness of the CARES Act means exact amounts are currently unknown.

“We’re learning more details as we move forward,” he said.

Several Republicans expressed concerns that if there is insufficient federal money for the state, appropriations would have to come from the state’s General Fund. All Republicans on the committee voted against the bill.

The state’s budget is under unprecedented strain right now due to the pandemic, said Rep. Pat Garofalo (R-Farmington). “It is crucially importantly on both sides of the aisle … that Republicans are not out promising tax cuts to people that we have no way of paying for of a balanced budget. It is equally important that members of the DFL are not reaching out to the public and making commitments to spending that we have zero chance of being able to pay for.”

Rep. Tina Liebling (DFL-Rochester) said it would be “irresponsible” not to spend money that’s needed today to help Minnesotans get through “this very trying and urgent time.”

“We are aware that we are heading into this really difficult situation and none of us actually knows how this is going to look,” she said. “We have to use the tools that are available for us to help our people get through the emergency. To say, 'Well, we don’t have any money, we won’t have any money; therefore, we're not going to spend money that's needed today to get our people through this very trying and urgent time,' I think would be irresponsible.”