August 8, 2022

Volume XII, Number 220


August 05, 2022

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Senate Approves Paycheck Protection Program Expansion and Additional Funds for Health Care; House to Vote Thursday

Today, the Senate approved H.R. 266, combining an expansion of the Paycheck Protection Program and allocating another $100B for health care providers and others for COVID-19 related services and testing.  The House is expected to vote on the bill this Thursday. 

Paycheck Protection

The expansion of the Paycheck Protection Program (PPP) allows for an additional $310 billion in available funds, increasing the total amount under the PPP from $349 billion to $659 billion. Of the additional amounts available for loans, $30 billion will be set aside for loans made by Insured Depository Institutions and Credit Unions that have assets between $10 billion and $50 billion and $30 billion will be set aside for loans made by Community Financial Institutions, Small Insured Depository Institutions, and Credit Unions with assets less than $10 billion.

The legislation also included an expansion of the Economic Injury Disaster Loss (“EIDL”) program, increasing the available funds thereunder from $10 billion to $20 billion. Additionally, agricultural enterprises (as defined in the Small Business Act), are now eligible for EIDL grants and loans.

Another $100B for Health Care Providers and Others

Not to confuse buckets of $100B, the Senate’s approval today of another $100B in Dept. of Health and Human Services (HHS) funding for various health care providers generally and others engaged in health care services and testing for COVID-19 expands the CARES Act Public Health Relief Funds..  Although HHS has yet to distribute $70B of the first bucket of $100B authorized under the CARES Act, Senate bill H.R. 266 would authorize additional funding to be distributed by HHS, roughly as follows:

  • $75B to hospitals and health care providers for reimbursement of COVID-19 related expenses and lost revenue, under the same terms as the CARES Act.   As described in the CARES Act, these funds also can be used to build or lease temporary structures, purchasing medical supplies and equipment, PPE, testing supplies, increased workforce and trainings, and retrofitting facilities and surge capacity.

  • $25B to various governments and entities for expenses related to research, development, validation, manufacturing, purchasing, administering and expanding capacity for COVID-19 tests:

    • $11B for states ($2B), localities, territories and tribes ($750M) to scale-up testing, including for employer testing, with $4.25B allocated to areas based on relative numbers of COVID-19 cases

      • These recipients must submit a plan to identify how the resources would be used for testing and “easing COVID-19 community mitigation policies”

    • $1B to CDC for surveillance, epidemiology, lab capacity expansion, contact tracing and other analytics

    • $1.8B to the NIH to develop, validate, improve and implement testing and associated technologies, including those technologies in the rapid and point-of-care settings

    • $22M for the FDA

    • $825M for Community Health Centers and Rural Health Clinics

    • Up to $1B to cover the costs for testing the uninsured.

The House currently is scheduled to consider the measure on Thursday. House Democratic leadership advised Members at the beginning of this week that a recorded vote would be likely and asked Members who could return to Washington to be present. Similar to passage of the CARES Act last month, the House is expected to establish a quorum to overcome Republican objections to a voice vote and pass the bill.

© Polsinelli PC, Polsinelli LLP in CaliforniaNational Law Review, Volume X, Number 112

About this Author


Colleen Faddick's practice includes advising clients regarding the structure of and relationships among health care providers and entities within the complex federal and state regulatory environment. Colleen focuses on Medicare and Medicaid reimbursement and enrollment issues and appeals, fraud and abuse and self-referral law issues, licensing and certification of health care entities, clinical trial compliance and agreements for sponsors and providers, medical device payment and manufacturer relationships with physicians. Colleen works with hospitals, large physician...

Julius W. Hobson, Jr., Polsinelli PC, Public Policy Attorney, Long Term Care Regulation Lawyer,
Senior Policy Adviser

Julius W. Hobson, Jr., strives to meet client public policy goals and objectives based upon the client needs and capabilities. Julius has more than 40 years’ experience in public policy, working both inside and outside of government. He has a deep-rooted understanding and compassion about the public policy process — both legislative and administrative. He primarily serves health care clients with particular emphasis on physicians, hospitals, home health, and long-term care providers. 

Ross E. Sallade, Polsinelli PC, Medicare Enrollment Lawyer, Diligence Reports Attorney

Ross Sallade provides value to clients by tackling the complex legal regulatory, operational, reimbursement and enrollment matters that others might be reluctant to handle. Ross does so by drawing upon specialized knowledge for each matter which enables him to quickly evaluate urgent issues and provide practical recommendations. He also leverages a unique skill set that enables him to identify and work with the right federal and state regulators to pinpoint the heart of the issue and make recommendations to reach appropriate resolution. His previous experience...

Julie E. Shroyer MSW, Advocacy Coalition Attorney, Regulatory Language Lawyer
Senior Policy Adviser

Julie Shroyer’s long-term relationships with health and education policy decision makers allow her to be a forceful voice for clients’ interests. With 25 years of government relations experience on health care issues, she is in daily contact with Washington’s leading health care experts on Capitol Hill, in regulatory agencies, national organizations, and advocacy coalitions. Her work has resulted in numerous legislative victories, including increased Congressional awareness of client policy initiatives, earmarked appropriations, and favorable legislative and regulatory...

Phil Feigen of the Polsinelli Law Firm Corporate Transaction Attorney, in Washington DC
Office Managing Partner

Phil Feigen brings a unique perspective to providing general corporate advice, as well as complex business counsel to clients in ever-changing regulatory environments.  For more than 20 years, Phil has been providing guidance with respect to Small Business Investment Companies and other Small Business Administrative regulations, federal and state banking laws and federal securities laws. 

Phil focuses on helping clients through the SBIC licensing process so that they may realize the benefits of the program and increase the amount of investment...