Federal Update: Following the Money

April 22, 2020

Yesterday (and last night) we shared details regarding the emergency stimulus package agreed on this week by D.C. lawmakers.  The package we will call package 3.5 includes more money for the Payment Protection Program as well as the Emergency Economic Aid Injury Disaster Loans Program.  It  also increases the current caps on both of these Programs.

The deal does not appear to include the $38.5B request made several weeks ago by the National Council,  ASAM and 40 other national and statewide organizations, including the NYS Council.  As you will recall, that request targets assistance for mental health and substance use disorder providers, CMHCs and other Programs and Services as determined by the Secretary of HHS.  

We are unclear whether the deal agreed on yesterday includes specific appropriation language that permits distribution of the remaining $70B (of the total $100B appropriated several weeks ago).  Thirty billion of the total here has already gone out the door (through Medicare) to hospitals, healthcare providers including group practices and private physicians, as well as some mental health and sud providers (based on their 2019 Medicare billing.)  HHS maintains that the remaining $70B is not limited to Medicare providers and will go to Medicaid providers, COVID-19 hot spots, etc. But as of yesterday morning federal agencies had not yet figured out the vehicle for getting the money out the door.  The language requires there be no ‘middle man’ for purposes of distributing the money (it has to be direct to providers) .  More on this to follow.

Finally yesterday’s deal appropriates an additional $100B for hospitals and other healthcare providers. Take a look at the HHS Fact Sheet we sent you last night for a closer look at where the money will go.

Going into this funding round Senate Dems wanted a much bigger package to include more assistance for frontline workers to include hazard pay and more.  Republicans and Secretary Minuchin pushed for a smaller bill with more money for small-business loans.  Obviously the leaders met in the middle but we must continue to fight for targeted resources for mental health and SUD organizations, as well as all human service organizations.