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White House and House Democrats agree to funding package for paid sick leave, funding for tests

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Late Friday night, after nearly two full days of negotiations, the House of Representatives is finally set to pass a bipartisan plan to provide sweeping new benefits to workers and businesses affected by the outbreak of the novel coronavirus in the U.S.
The new bill will offer paid sick leave, stronger unemployment benefits, free virus testing and more money for food assistance and Medicaid and was approved only after 13 phone calls between the House Speaker Nancy Pelosi  and Treasury Secretary Steve Mnuchin, according to a report in The New York Times.

After its approval this evening, the Senate will have to vote to approve the measure early next week before it can be signed into law by President Trump.
While stocks rose sharply after the President’s address, delaying the bill could cause further economic uncertainty and continue what has been a wild couple of months for financial markets beset by barrage of bad news and stopgap measures designed to boost the economy, but failing to address the actual pressures impacting global markets (driving people to invest in stock markets doesn’t solve the financial shock that stems from an economy grinding to a halt in response to a national epidemic).

As cities and states encourage (or in some cases mandate) social distancing and self-quarantines as a response to limit the spread of COVID-19, the disease caused by the novel coronavirus SARS-CoV-2, huge swaths of America’s service sectors will be affected.


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That applies to startups like the retail chains b8ta and Neighborhood Goods, the beauty brand, Glossier, the Los Angeles-based arcade chain for the new millennium, Two Bit Circus; and the most celebrated of the direct to consumer startups, Warby Parker.

It’s also a factor for gig and sharing economy companies like Postmates,  Instacart, Lyft,  Uber,  Airbnb and others — companies which were venture capital darlings for their novel approach to excess resources (be it cars, spare time, or space).

These companies have already faced criticism from lawmakers on Capitol Hill over their compensation practices for workers who may be affected by the coronavirus outbreak.


Hitting pause on America’s shopping and dining in malls and restaurants, entertainment in bars, theaters, concerts, and at plays, and the closure of public spaces, along with work-from-home policies that reduce foot traffic to local businesses or retail chains in business districts will hit low-income workers and hospitality staff, who don’t have paid-time-off or at risk of losing their jobs as business slows.


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Those social distancing measures are also one of the best chances cities have to slow the spread of the virus, according to most experts. And paid time off has been shown to reduce the spread of disease, according to the New York Times report on the bill’s passage.

“Today, we will pass the Families First Coronavirus Response Act after reaching an agreement with the Administration,” Speaker Pelosi wrote on Twitter. “This legislation builds on the action that House Democrats took last week to put #FamiliesFirst with our strong, bipartisan $8.3 billion emergency funding package.”


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