COVID-19 Viewpoints

Below is an update on legislative efforts by Congress and the White House to address the coronavirus pandemic, prepared by our D.C. colleagues at ML Strategies, who are closely following these fluid and fast-moving developments. Efforts to provide a supply of low cost working capital to the many businesses and entities experiencing operational and/or cash flow disruption may be of particular interest to our bondholder clients.

In response to the coronavirus pandemic, Congress and President Trump have taken the following actions:

Read about the federal government’s response to COVID-19, including $8B in emergency funding and the Families First Coronavirus Response Act pending in the House.

Read about what the World Health Organization’s declaration that COVID-19 is a pandemic means for force majeure provisions in contracts.

On March 12, 2020, the IRS issued notice 2020-15, providing that a health plan will not fail to be a High Deductible Health Plan (HDHP) merely because it provides testing for and treatment of COVID-19 without a deductible or subject to a reduced deductible. Therefore, an individual who participates in such a plan may continue to participate in a Health Savings Account (HSA).

With the outbreak of coronavirus disease 2019 (“COVID-19”), the disease caused by the novel coronavirus (“SARS-CoV-2”), companies across various industries are taking precautions, some of which already have, and inevitably will result in nonperformance of their contracts.