Heroes Act: Law Or Limbo?

On May 14, 2020, House Speaker Nancy Pelosi introduced a $3 trillion coronavirus relief bill called the Health and Economic Recovery Omnibus Emergency Act, or HEROES Act. The bill, which was passed by the House of Representatives, would provide short-term financial relief during the health crisis. However, it faced opposition from President Trump and Republican lawmakers, who declared it dead on arrival in the Senate. Despite this, there is a possibility that certain provisions of the HEROES Act could be included in future stimulus packages that are more likely to be signed into law.

Bipartisan support for the HEROES Act

The HEROES Act, or the Health and Economic Recovery Omnibus Emergency Solutions Act, was passed in the House of Representatives in May 2020. However, it was declared "dead on arrival" in the Senate, with President Trump and Republican lawmakers denouncing it. Despite this, there were certain provisions in the bill that had enough bipartisan support to eventually become law.

The HEROES Act was a $3 trillion bill that would provide stimulus checks to individuals who did not qualify for them under the CARES Act, such as undocumented immigrants. It would also provide temporary relief from deportation for undocumented immigrants working in essential fields and allow them to apply for employment authorisation throughout the pandemic.

The bill would also require Immigration and Customs Enforcement (ICE) to release people from immigration detention where possible and pursue low-cost alternatives to detention for low-risk immigrants. It would also require detention facilities to provide detainees with free and unlimited soap, as well as phone and video call accessibility to communicate with family and legal representatives.

The HEROES Act would also call for a second round of stimulus checks to most Americans, with the plan being to provide a $1,200 base payment to each eligible person ($2,400 for married couples filing a joint return), plus an additional $1,200 for each dependent (up to a maximum of three dependents).

The Act would also expand the Paycheck Protection Program (PPP) and provide aid to states and local governments. It would also extend unemployment benefits, which was an issue that caught the attention of lawmakers on both sides of the aisle.

Despite the HEROES Act not becoming law, there was a glimmer of hope that another stimulus package of some sort would eventually get through Congress and be signed into law by the president.

Stimulus checks for undocumented immigrants

The HEROES Act, or the Health and Economic Recovery Omnibus Emergency Solutions Act, is a $3 trillion coronavirus relief bill that was introduced by the House of Representatives in May 2020. The bill includes stimulus checks for undocumented immigrants, which has been a contentious issue.

Undocumented immigrants were excluded from the previous coronavirus relief bill, the CARES Act, as they do not have a Social Security Number (SSN) and are not able to fulfil certain residency requirements. However, the HEROES Act would make individuals filing taxes using an Individual Taxpayer Identification Number (ITIN) eligible for stimulus relief, providing them with much-needed financial support during the pandemic. This change in eligibility is estimated to benefit over 4.3 million adults and 3.5 million children, with a total of over $9.4 billion in direct economic relief being disbursed.

The HEROES Act also addresses the issue of mixed-status households, where some tax filers or their children use an ITIN. Under the CARES Act, if anyone in the household uses an ITIN, no one in the household qualifies for stimulus checks unless one spouse served in the military in 2019. This has led to criticism that the CARES Act unlawfully discriminates against US citizens with undocumented immigrant family members. The HEROES Act aims to correct this by making all individuals in mixed-status households eligible for stimulus relief.

In addition to stimulus checks, the HEROES Act also provides other forms of relief for undocumented immigrants. It offers temporary relief from deportation for undocumented immigrants working in essential fields such as healthcare and allows them to apply for employment authorisation during the pandemic. The Act also proposes additional healthcare benefits for immigrants eligible for Medicaid and requires immigration authorities to release people from immigration detention whenever possible.

While the HEROES Act has been supported by Democrats, it has faced opposition from Republicans, including President Trump and Senate Majority Leader Mitch McConnell. They have declared the bill dead on arrival in the Senate due to its inclusion of stimulus checks for undocumented immigrants, among other provisions. However, there is still a possibility that a revised version of the bill or another stimulus package with similar provisions could eventually become law.

Expedited visa processing for foreign medical workers

The HEROES Act, or Health and Economic Recovery Omnibus Emergency Solutions Act, is a $3 trillion bill that was introduced by the House of Representatives in May 2020. It was expected to be passed by the House but was declared "dead on arrival" in the Senate. The Act includes provisions for expedited visa processing for foreign medical workers.

The HEROES Act would require expedited visa and green card processing for foreign medical workers seeking to practice medicine, conduct medical research, or pursue education or training to combat COVID-19. This would address the shortage of doctors, nurses, and other medical professionals that are greatly needed during the pandemic. Consulates and Embassies worldwide would be required to prioritize visa interviews for these workers, granting emergency appointments in person or via teleconference.

Foreign doctors who completed residency programs in the United States would be eligible to receive permanent residence on an expedited basis. Medical professionals in H-1B status would be able to transfer between hospital systems without needing to apply for a new visa. Medical students would be allowed to transfer rotations within their host institution and would be compensated for their work during the pandemic. They could also work outside of their approved program as long as their work relates to fighting COVID-19.

These changes, if passed, would provide much-needed support to the healthcare system during the pandemic and address the shortage of medical professionals.

Payroll relief for government contractors

The HEROES Act (Health and Economic Recovery Omnibus Emergency Solutions Act) is a $3 trillion bill that provides short-term financial relief during the COVID-19 crisis. While the bill was passed by the House of Representatives, it is unlikely to become law as it faces opposition in the Republican-controlled Senate and from President Trump.

The HEROES Act includes provisions that will impact payroll relief for government contractors. The act seeks to provide relief to firms that have been impacted by the pandemic and are unable to work due to federal offices being closed or due to stay-at-home orders. The act allows these firms to bill the Department of Defense and intelligence agencies for a range of costs associated with keeping workers employed during the health crisis. This includes "fees" and "general and administrative expenses", which are typically associated with the costs of running a business such as executive compensation, running the corporate office, marketing, and sales.

The inclusion of these costs in the HEROES Act has been criticised as a stealthy way to bail out the defence and intelligence government contracting industry and their executives at taxpayer expense. However, supporters of the act argue that it is necessary to ensure these firms can survive the crisis and recover their lost revenue.

While the HEROES Act in its current form is unlikely to become law, it is expected that a stimulus package of some sort will eventually be passed by Congress and signed into law by the President. It is possible that some provisions of the HEROES Act related to payroll relief for government contractors may be included in this future legislation.

Overall, while the HEROES Act faces significant opposition and is unlikely to become law in its current form, it remains to be seen if any of its provisions related to payroll relief for government contractors will be included in future stimulus packages.

Help for small businesses

The HEROES Act (Health and Economic Recovery Omnibus Emergency Solutions Act) was introduced by the Democrats in the House of Representatives in May 2020. It was a $3 trillion coronavirus relief bill that provided the next round of stimulus funds after the CARES Act. While the bill was passed by the House, it was deemed "dead on arrival" in the Republican-controlled Senate and was never signed into law.

The HEROES Act included several provisions aimed at helping small businesses:

Expansion of the Paycheck Protection Program (PPP)

The Act proposed enhancements to the PPP, a CARES Act relief measure. It included provisions to:

• Extend the PPP program through the end of 2020
• Guarantee access to PPP loans for small businesses with 10 or fewer employees
• Increase the eight-week loan use period to 24 weeks
• Create a safe harbor for borrowers who can't rehire workers in the required timeframe
• Repeal the requirement that 75% of the forgiven loan amount be used for payroll
• Clarify that expenses paid with PPP loans that are forgiven are tax-deductible

Changes to the Employee Retention Credit

The CARES Act created a new payroll tax credit for businesses impacted by the coronavirus pandemic that continued to employ their workers. The HEROES Act offered several improvements to this credit, including:

• Bumping the maximum credit amount from $5,000 to $36,000 per paid worker
• Changing the 100-employee rule for determining qualified wages for large employers to 1,500 full-time employees and gross receipts greater than $41.5 million in 2019
• Extending the credit to eligible state and local government employers
• Allowing businesses that take out PPP loans to qualify for the credit

Nonprofit Support

The CARES Act shut out a significant portion of the nonprofit sector from accessing relief under the PPP. The HEROES Act aimed to address this issue by proposing to expand PPP eligibility to all types of nonprofits, regardless of their tax-exempt classification. This included 501(c)(6) trade associations, 501(c)(4) social welfare organizations, and 501(c)(5) labor and agricultural organizations.

The Act also proposed the following amendments to the PPP aimed at the nonprofit sector:

• Removing the 500-employee cap, allowing larger 501(c)(3) charities to apply for a PPP loan
• Explicitly allocating 25% of new funding for nonprofits of all types
• Further allocating funding set aside for nonprofits evenly between large and small to mid-size organizations

Other Small Business Provisions

The HEROES Act also included other provisions that would benefit small businesses:

• Extending the covered period for PPP loans from June 30, 2020, to December 31, 2020
• Establishing a minimum maturity on PPP loans of five years
• Amending the PPP loan forgiveness criteria by extending the eight-week period to 24 weeks
• Excluding the cost of compensation to any lobbyist registered under the Lobbying Disclosure Act as an eligible PPP expense

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