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In the letter, the Members of Congress call on Chairman Powell to take immediate action to make critical improvements to the Municipal Liquidity Facility (MLF), so states and municipalities can benefit from the program as intended. The letter notes, “At present, the harsh terms and penalty rates for the MLF make it functionally unusable for the vast majority of the state and local governments that are technically eligible, which severely undermines the program’s intent to help states and cities struggling from unprecedented financial hardship. The unusually harsh penalty rate on users of the MLF, coupled with an arbitrarily set and short three-year time limit on the lending, makes it unusable to a majority of potential local government participants. As a result, very little of the facility’s $500 billion capacity is being used now, or is likely to ever be used, unless the Federal Reserve makes dramatic changes to the lending terms.”

“There have been 1.5 million public sector layoffs since March, and unless the Fed aligns its assistance to states and cities with its emergency lending to the private sector, mass unemployment and emergency conditions will persist for years,” wrote Jayapal, Pocan, Tlaib & Neguse in the letter to Chairman Powell. “To that end, it must be noted that many of the Federal Reserve’s corporate lending programs contain terms that are far more favorable than those included in the MLF. This includes, for example, far cheaper pricing, far longer terms, and even payment deferrals for corporations borrowing from the Main Street Lending Program, the Secondary Corporate Credit Facility, and the Term Asset-Backed Securities Loan Facility. Given the severity of the need and the Federal Reserve’s exceptional creativity and flexibility in its corporate lending programs, which have moved the institution’s support of the private sector far beyond what anyone thought was possible, we cannot accept that the MLF remain an outlier when it comes to providing the meaningful fiscal support intended by Congress.”

The full letter, which was signed by 53 members of Congress, is available here. It’s been endorsed by the following organizations: American Federation of State, County, and Municipal Employees (AFSCME), Service Employees International Union (SEIU), Communications Workers of America (CWA), National Education Association (NEA), the Center for Popular Democracy’s Fed Up Campaign, Demand Progress Education Fund, American Family Voices, Social Security Works, Progressive Change Campaign Committee (PCCC), American Economic Liberties Project, Greenpeace USA, Friends of the Earth, and Americans for Financial Reform.

A pdf of the letter is available here.

Dear Speaker Pelosi, Majority Leader Hoyer and Senate Democratic Leader Schumer:

Thank you for your leadership as you continue to work to address the ongoing economic and public health crises our nation faces as a result of the coronavirus pandemic. As you negotiate a bipartisan package, we write to ask that you extend the key provisions in the CARES Act that have served as a critical lifeline to millions of individuals and families across the country, and work to ensure the inclusion of other Democratic priorities in the Heroes Act to adequately address the scale of this crisis.

The proposal released by Senate Republicans, including their decision to slash supplemental unemployment insurance and failure to extend the eviction moratorium, would result in $1600 less in critical relief every month for families already struggling to put food on the table, pay bills and make ends meet. Their proposal shields corporations, while short-changing essential workers and undermining our ability to conduct testing and contact tracing at the scale that is necessary to get the pandemic under control. We must reject their dangerous proposal and negotiate a bill that meets the demands of the American people by:

• Extending the $600 per week supplemental unemployment insurance (UI) benefit. With a historic 30 million people receiving UI, any significant scale-back of this benefit will result in a sharp decline in the standard of living for millions of Americans, increase poverty, and exacerbate racial inequality.
• Extending the nationwide moratorium on eviction and foreclosures for all renters and homeowners, and the moratorium on water and utility shutoffs, consistent with the Heroes Act. Congress should also include $100 billion in rental assistance to keep people in their homes.
• Protecting essential workers with an Emergency Temporary OSHA Standard, hazard pay and strong whistleblower protections, and access to affordable child care consistent with the Heroes Act.
• Ensuring equitable access to any COVID-19 related care or vaccine, including through Medicaid and Medicare and full reimbursement for the uninsured.
• Extending access to the benefits included in any coronavirus response legislation to immigrants, including ITIN holders.
• Ensuring robust support for small businesses and workers through direct payments to businesses for payroll, benefits and operating costs, and improving the federal workshare program by expanding it to all states and eliminating the minimum employee limit.
• Maintaining the $915 billion in funding for the state, local, tribal and territorial governments and parity for the District of Columbia, consistent with the Heroes Act.
• Ensuring election security by guaranteeing vote-by-mail for the November 2020 elections, all future federal elections and maintaining access for safe in-person voting for those without access to mail voting, consistent with the Heroes Act.
• Rejecting price gouging and any expanded corporate bailouts and protections, including liability shields which place the health of corporations over the health of the American people.

The coronavirus pandemic has exposed and exacerbated long-standing inequalities in our country, and the American people demand – and deserve – that Democrats pass a negotiated bill that meets their dire needs.

Sincerely,

Mark Pocan

Pramila Jayapal

“We’re pleased that Democratic leadership has honored our request to remove the DHS funding bill from the next appropriations package. The Progressive Caucus has repeatedly articulated our concerns with the misuse of DHS funds and the agency’s role in orchestrating the detention of immigrants and separation of families. We’ve also raised our serious concerns with DHS’s recent actions in Portland, where secret police have been deputized to target and harass protestors, and the deployment of DHS officers to cities across the country, including Seattle and Chicago.

“We need a full overhaul of DHS to bring real accountability, prohibit the unconstitutional occupation of our cities, protect the rights of immigrants in DHS custody, and defend civil liberties. We want to thank Chairwoman Roybal-Allard, who has had the Herculean task of reforming this rogue agency, and we look forward to working with her to advance justice, accountability, and human rights. We also want to thank our progressive colleagues for their commitment to addressing the abuses within DHS, and the activists who have fought tirelessly to protect civil liberties and our immigrant communities.”

“Of all President Trump’s senseless policies, his Muslim and African ban epitomize the bigotry, xenophobia, and plain cruelty of this Administration. These bans serve no purpose other than inflicting needless suffering,” said CPC Co-Chairs Congresswoman Jayapal (WA-07) and Congressman Mark Pocan (WI-02). “For more than three years, these bans have separated loved ones, prevented students from conducting research and pursuing professional opportunities in the U.S., and fueled anti-Muslim harassment. Moreover, this discrimination has led to unjust, prolonged detentions in CBP custody. In some cases, people have been detained and deported with no due process. Since the enactment of these bans, the Progressive Caucus has fought to repeal them and ensure that individuals are protected from wrongful detentions at U.S. points of entry. We pledged to keep fighting for these families until they were reunited – and we’re pleased that today’s vote has brought us one step closer to that goal.”

“Over the last few years, the immigrant, Black, and Muslim communities have been the target of horrific hate, xenophobia, and Islamophobia,” continued Congresswoman Jayapal and Congressman Pocan. “This bill is not a panacea – there is far more work to be done to end the structural racism and anti-Muslim discrimination in this country. But the passage of this legislation today marks the first time, in American history, that Congress has voted to protect and affirm the civil rights of Muslims. We will keep fighting until this bill is signed into law and our nation’s founding promise of justice and liberty for all is made a reality.”