{"id":29932,"date":"2020-07-23T18:10:33","date_gmt":"2020-07-23T18:10:33","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2020\/07\/23\/21b-for-defense-in-draft-covid-aid-proposal-report\/"},"modified":"2026-08-07T22:29:32","modified_gmt":"2026-08-07T22:29:32","slug":"21b-for-defense-in-draft-covid-aid-proposal-report","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/congress\/2020\/07\/23\/21b-for-defense-in-draft-covid-aid-proposal-report\/","title":{"rendered":"$21B for defense reportedly included in COVID aid proposal"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2015 The White House and Senate Republicans are nearing an agreement on a $1 trillion-plus economic rescue proposal that would also seek $21 billion for defense, according to a draft <a href=\"https:\/\/www.nytimes.com\/interactive\/2020\/07\/23\/us\/republican-draft-virus-aid-bill-july-23.html\" target=_blank>obtained by the New York Times<\/a> on Thursday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The emerging GOP proposal would include $11 billion in payments to contractors under the Section 3610 of the Coronavirus Aid, Relief and Economic Security Act, which allowed firms serving the federal government to seek reimbursement for pandemic-related expenses. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, amid <a href=\"https:\/\/www.politico.com\/news\/2020\/07\/23\/republican-setback-pandemic-aid-380148\" target=_blank>reports<\/a> of internal divisions\u2015over the defense money and other aspects\u2015Republicans delayed the rollout to at least next week.  <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Defense trade associations, along with dozens of industry executives, have conducted a<a href=\"https:\/\/www.defensenews.com\/congress\/2020\/07\/15\/defense-execs-press-lead-lawmakers-for-covid-reimbursements\/\" target=_blank> vocal lobbying effort<\/a> across government to secure the money as they grapple with the economic damage wrought by the coronavirus pandemic.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It was unclear from the draft document \u2014 essentially a list of priorities and amounts \u2014 what the remainder of the defense funding would be for. The line item in the draft read only: \u201c$20 billion \u2014 Defense total ($11 billion of which is for 3610 payments to contractors.\u201d The funding follows <a href=\"https:\/\/www.defensenews.com\/congress\/2020\/05\/28\/the-pentagon-has-spent-only-23-of-its-covid-19-response-funds-congress-is-asking-why\/\" target=_blank>$10.5 billion<\/a> the Pentagon previously received under the CARES Act.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The emerging proposal would include another round of stimulus payments to individuals, additional aid to small businesses and a partial extension of enhanced unemployment benefits, according to a summary circulating on Capitol Hill that was obtained by the New York Times.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/congress\/2020\/07\/14\/the-pentagon-wants-a-10b-defense-industry-cash-injection-is-congress-listening\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"169\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/77S2YLP5VREODJNNODEH5XE5VA-Cropped.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">The Pentagon wants a $10B defense industry cash injection. Is Congress listening?<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Pentagon leaders need \u201caround $10 billion\u201d in the next pandemic aid package to cover defense contractors\u2019 coronavirus-related costs. But it\u2019s unclear how the hefty funding handout will square with Republican skepticism of new deficit spending.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">The defense portion would be a boon to the Pentagon and its suppliers, but it\u2019s by no means a done deal. The White House and Senate Republicans, which took months to draft the proposal, faced more delays this week over internal disagreements \u2015 as well as coming negotiations with Democrats, who have sought as much as $3.5 trillion for coronavirus relief.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Treasury Secretary Steven Mnuchin, meeting with Senate Majority Leader Mitch McConnell, R-Ky., and White House chief of staff Mark Meadows, <a href=\"https:\/\/thehill.com\/homenews\/senate\/508677-mnuchin-says-gop-has-fundamental-deal-on-1t-coronavirus-relief-bill\" target=_blank>told reporters<\/a> that staff are working to finalize text of the agreement, which was expected to be released as a group of bills instead of one piece of legislation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Underscoring the difficulties, House Speaker Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., on Thursday rejected the GOP\u2019s \u201cpiecemeal\u201d approach, saying the proposal fell \u201cvery short.\u201d It omits Democratic priorities like food assistance, aid to prevent evictions, hazard pay for essential workers, and aid to states and communities, they said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Since officials with the Department of Defense have called for defense reimbursements in the low double-digit billions, <a href=\"https:\/\/www.defensenews.com\/congress\/2020\/06\/10\/defense-industrys-covid-costs-could-tank-dod-modernization-plans\/\" target=_blank>warning<\/a> that they would otherwise have to raid modernization and readiness accounts for the funding, some analysts have predicted Congress would address the need.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe expect the Senate\u2019s version of the next COVID-19 relief package to include money for Section 3610 impacts and related cost impacts,\u201d Roman Schweizer of the Cowen Group wrote Thursday in a note to investors. \u201cWe think this money will be small compared to the total cost of the bill (~$1T+) and will be included in the final bill. This will be positive for defense [firms] and allow DoD to protect investment accounts. We expect a lengthy, complicated process for cost recovery.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a Senate floor speech earlier in the week, Senate Armed Services Committee Chairman Jim Inhofe said Congress ought to follow through on Section 3610 with appropriations, or risk delays and cost overruns in weapons programs as well as attrition in the defense industry\u2019s workforce.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cDefense industrial companies have done a great job in ensuring that their suppliers \u2014 primarily thousands of small businesses \u2014 stay open and keep their employees paid,\u201d said Inhofe, R-Okla. \u201cIn the CARES Act, we gave DoD the authority and the tools to reimburse these companies to keep the defense workforce strong. But the DoD needs money to use these tools.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The White House and Senate Republicans are nearing an agreement on a $1 trillion-plus economic rescue proposal that would also seek $21 billion for defense, according to a draft obtained by the New York Times.<\/p>\n","protected":false},"author":7,"featured_media":66252,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":8,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[44,8,9,160,36],"tags":[],"coauthors":[3446],"class_list":["post-29932","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budget","category-congress","category-coronavirus","category-daily-news-roundup","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"KGRJDNKG55DHXGJROU7X3AMWBA","arc_canonical_url":"\/congress\/2020\/07\/23\/21b-for-defense-in-draft-covid-aid-proposal-report\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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