Lawmakers Encourage Expansion of Employee Retention Tax Credit 

Murphy-led Blue Dogs Call on House, Senate Leadership to Restart COVID-19 Relief Negotiations, Include Bipartisan Priorities in Legislation

Murphy also called on Speaker Pelosi to bring to the floor her bipartisan jobs bill that would help more than 6 million businesses keep 60 million workers tethered to their jobs

Washington, August 21, 2020

WASHINGTON — Today, U.S. Congresswoman Stephanie Murphy led a group of members of the Blue Dog Coalition in sending a letter to House and Senate leadership urging them to restart bipartisan negotiations on a fifth COVID-19 relief package to address the current public health and economic crisis. The Murphy-led Blue Dogs urged leadership to include a set of priorities that have earned bipartisan support in both chambers of Congress. These priorities include the following: 1) an extension of unemployment insurance benefits; 2) measures to keep workers tethered to their jobs; 3) support for state, local, and tribal governments, K-12 schools, and institutions of higher educations; 4) a second round of economic impact payments; and 5) stronger oversight of pandemic response spending.

Additionally, Murphy called on Speaker Pelosi to bring to the floor her bipartisan bill to expand the employee retention tax credit (ERTC), which incentivizes businesses of all sizes to retain their employees in active or furloughed status, rather than laying them off, so they continue to receive a paycheck, employer-sponsored health insurance, and other benefits. It is estimated that ERTC expansion will help 6.1 million businesses keep 60 million workers tethered to their jobs. A version of the Murphy-led measure has been introduced in both chambers of Congress, was passed in the House as part of the Heroes Act, and has broad bipartisan support.

“It is past time to stop the finger pointing and bring to the floor bipartisan legislation like my bill to expand the pro-worker, pro-business employee retention tax credit. ERTC enjoys bipartisan support in both the House and Senate, and would likely easily clear both chambers if introduced on its own,” said Murphy. “While I still believe both sides need to negotiate a principled compromise, passing ERTC would bring immediate relief to American workers and businesses still reeling from the economic devastation brought by COVID. We can't allow politics to get in the way of helping those who desperately need our help.”

The letter was signed by Murphy and all members of Blue Dog Coalition leadership, including Tom O'Halleran, D-Ariz., Lou Correa, D-Calif., Anthony Brindisi, D-N.Y., and Kurt Schrader, D-Oreg. Additionally, the following Blue Dog Coalition members signed the letter: Rep. Sanford Bishop, D-Ga., Rep. Ed Case, D-Hawaii, Rep. Jim Costa, D-Calif., Rep. Charlie Crist, D-Fla., Rep. Henry Cuellar, D-Texas, Rep. Joe Cunningham, D-S.C., Rep. Jared Golden, D-Maine, Rep. Vicente Gonzalez, D-Texas, Rep. Josh Gottheimer, D-N.J., Rep. Kendra Horn, D-Okla., Rep. Daniel Lipinski, D-Ill., Rep. Ben McAdams, D-Utah, Rep. Max Rose, D-N.Y., Rep. David Scott, D-Ga., and Rep. Mikie Sherrill, D-N.J.

See below for the full text:

Dear Speaker Pelosi, Leader Hoyer, Leader McCarthy, Leader McConnell, and Leader Schumer:

As the House prepares to vote this weekend on a bill to protect the United States Postal Service, we urge you to restart bipartisan, bicameral negotiations on a fifth COVID-19 relief package that is commensurate with the scale of this public health and economic crisis. Although there are meaningful differences between the HEROES Act and the HEALS Act, there is also considerable common ground. In an era of divided government, the reality is that only bipartisan solutions will deliver much-needed support, and that requires principled compromise by both parties.

We believe the following priorities — among others — can obtain bipartisan support, and we urge you to include them in the next legislative package:

1. Extension of unemployment insurance (UI) benefits: The number of Americans who have lost their jobs through no fault of their own and who rely on UI benefits is staggering. This weekly benefit should be extended to enable beneficiaries to provide for their families and to support their local economies.

2. Measures to keep workers connected to their jobs: Both the HEROES Act and the HEALS Act expand the employee retention tax credit (ERTC) established in the CARES Act. We urge continued support for this bipartisan provision, which will enable millions of businesses to keep tens of millions of workers tethered to their jobs and to their employer-sponsored health care. Additionally, we urge support for H.R. 7481, the RESTART Act, a bipartisan bill that provides for the Small Business Administration to guarantee loans made to certain businesses affected by COVID-19.

3. Support for state, local, and tribal governments; K-12 schools; and institutions of higher education: It is imperative that we provide additional financial support to state, local, and tribal governments. They serve on the frontline of our national response to this pandemic. Absent fair federal funding, state, local, and tribal governments will have no choice but to make painful budget cuts to key services like police and fire departments, or to raise taxes for already-struggling families and businesses. In addition, we are pleased there is bipartisan, bicameral support for robust additional funding to K-12 schools and institutions of higher education. We urge that such funding be provided without unreasonable conditions.

4. A second round of economic impact payments: Both the HEROES Act and the HEALS Act provide for a second round of economic impact payments, which have been a lifeline for many of our constituents, and it is clear we can swiftly forge a compromise with respect to the value of payments and eligibility for payments.

5. Stronger oversight of COVID spending: We reiterate our call for stronger spending oversight measures in order to protect taxpayer dollars. During this pandemic, every federal dollar wasted is a dollar less to support our health care system, our workers, and our businesses. Protecting taxpayer money should be the ultimate bipartisan cause.

Our constituents sent us to Congress to find bipartisan solutions that move this country forward. The current stalemate is punishing families and destabilizing our economy. Congress must do all that it can to keep workers tethered to their jobs, assist the unemployed, support our health care workers and our health care system, and ensure that businesses who do right by their workers are given the necessary resources and protections to survive. We must keep negotiating, no matter how difficult. Inaction is not an option.

Sincerely,