Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 1033 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…
Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 1033 and ask for its immediate consideration.
Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentlewoman from Minnesota (Mrs. Fischbach), my colleague and friend, pending which I yield myself such time as I may consume. During consideration of this resolution, all time yielded is for the purpose of debate only.
General Leave
Mr. Speaker, I ask unanimous consent that all Members be given 5 legislative days to revise and extend their remarks.
Mr. Speaker, this morning the Rules Committee met and reported a rule, House Resolution 1033, providing for consideration of H.R. 3807, the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 under a closed rule.
The rule provides 1 hour of debate equally divided and controlled by the chair and ranking minority member of the Committee on Small Business, self-executes a manager's amendment from Chairwoman Velazquez, and provides one motion to recommit.
Mr. Speaker, I rise today to urge my colleagues to adopt the rule and support critical funding for restaurants and other small businesses across our Nation.
As we all know, small businesses--especially restaurants--are the backbone of our local economy. Not only for the revenue they bring in, but for the many local workers they employ; families that need their paycheck now more than ever. But sadly, restaurants have been some of the hardest-hit businesses throughout the COVID-19 crisis, and many have struggled to keep their doors open.
Many of us have made a promise to support workers, families, and businesses in their time of need, and that is why we established the Restaurant Revitalization Fund in the American Rescue Plan, which provided $28.6 billion in emergency assistance to eligible restaurants, bars, and qualifying businesses impacted by the COVID crisis.
This program was clearly a success, providing relief to more than 100,000 restaurants and food and beverage businesses across the Nation. Some recent estimates show the program saved over 900,000 jobs, and 96 percent of recipients said the grant made it more likely they would stay in business.
However, there is no question that our initial investment was not enough. The program ran out of funds in just 3 weeks, as the total funding requested exceeded $72 billion, far more than the $28.6 billion provided for in the American Rescue Plan.
This funding gap resulted in 178,000 restaurants who are unable to secure funding in this program, even though they applied to the program and met all of the eligibility requirements. Let me say that again, 178,000 restaurants, many of which are in danger of permanent closure if Congress does not provide them with the relief they need.
The underlying legislation, the Relief for Restaurants and other Hard Hit Businesses Act, would provide for $42 billion to replenish the Restaurant Revitalization Fund, giving the Small Business Administration the funding necessary to close this funding gap and process the applications of those entities who are deemed eligible in the initial application period, providing a lifeline for the restaurant industry that has faced so many challenges over the past 2 years.
In addition to this critical funding, the underlying legislation also provides $13 billion for a new Hard Hit Industries Award Program, which will grant much-needed relief to other small businesses across industries and sectors that were the hardest hit by the pandemic but were not eligible for the Restaurant Revitalization Fund or Shuttered Venue Operators Grant program.
This new program would prioritize those eligible small businesses that experience the heaviest pandemic-related losses, beginning with those that lost 80 percent of their revenue.
To pay for both the establishment of the new program and the replenishment of the Restaurant Revitalization Fund, this bill would use funds reclaimed, seized, or returned to the Federal Government from bad actors attempting to defraud previous recovery programs.
Back in October 2020, the Small Business Administration Office of the Inspector General had already identified $78 billion in potentially fraudulent loans and grants to ineligible entities, and more than 300 individuals have been brought to justice. This legislation also increases oversight and audit requirements, ensuring that this additional support goes to the businesses originally intended to receive assistance.
Mr. Speaker, I have always been an advocate of additional support for the restaurant and hospitality industry, and many of my colleagues on the other side of the aisle have demonstrated support for the Restaurant Revitalization Fund, as well. I hope we continue to see bipartisan support for this effort on the House floor.
I urge all of my colleagues to support the rule and the underlying legislation to deliver critical funding for restaurants and small businesses in communities across the country.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
I always appreciate hearing from my colleagues and a distinguished member of the Rules Committee, Mrs. Fischbach. I do note, however, a couple of things before I yield some time.
The first is that as it relates to how the bill is funded, as I indicated, the inspector general himself, that office, indicated there is $78 billion in fraudulent claims that are being recouped by the Federal Government. This bill will cost $42 billion for the Restaurant Revitalization Fund replenishment, another $13 billion, $55 billion. There is plenty of money in those reclaimed dollars to be able to pay for this without having to appropriate new dollars. So this actually should be in line with the principles of some of our more conservative Members to have claimed dollars that are owed to the United States and to its taxpayers.
Secondly, as it relates to workforce shortages, and I think we all know in every industry, and the businesses I talk to back home, are struggling to find workers. Yet, I note yesterday in the Education and Labor Committee, of which I am a member, that we didn't get a single Republican vote for the Workforce Innovation and Opportunity Act, WIOA's reauthorization, which will do great things to continue to move people into the workplace as quickly as possible. Yet, we received no support for that.
So we are going to continue to work on these issues here in this Congress. We are going to continue to lead. This majority is going to continue to look out for small businesses, it is going to continue to look out for people looking for work, and it is going to continue to look out for employers who face worker shortages. So we will continue to support this, and I believe this bill will be a great victory for the 178,000 restaurants who desperately need our support.
Mr. Speaker, I yield 3 minutes to the distinguished gentleman from California (Mr. DeSaulnier), a fellow member of the Rules Committee.
Mr. Speaker, I yield myself such time as I may consume.
I want to just reiterate, this is really a simple issue. And there may be attempts to distract from what is a simple issue, but the Office of Inspector General indicated that we had $78 billion in fraudulent claims. That is an estimate. Some estimates range as high as $200 billion.
It seems silly to me that we wouldn't take advantage of those dollars which are being reclaimed to continue to try to get relief for the many, many tens of thousands, hundreds of thousands of restaurants and their employees across the country.
And I dare say that when I talk to--I have sat down with many, many restaurant owners in the last several months who had made application, and, simply, didn't have the resources in the fund that we had allocated to get relief, continue to talk to me about this.
So this is really a very, very simple question. I know there are a lot of complicated, nuanced questions around here in Congress that we are always dealing with. This is a simple one: Do we want to help these small businesses, or do we choose not to help them? And I think we would argue here that they very much deserve and merit this support.
Mr. Speaker, I yield 3 minutes to the gentlewoman from North Carolina (Ms. Ross), another distinguished member of the Rules Committee.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, frankly, I am a little perplexed. I think when I get home and talk to my restaurant owners, they are going to say: Why were you having a conversation about something not related to the restaurant revitalization act?
I will explain to them that as much as I would like to get into a conversation about how Putin's aggressive actions in Ukraine have affected gas prices around the world, as much as I would like to have the conversation about oil companies that have decided to continue to reap record profits and not increase supply to meet the demand around the world, as much as we can talk about all those things, that is not why we are here today. We should have that conversation in an appropriate venue.
This conversation and the venue right now that we are in is to talk about the Restaurant Revitalization Fund. It is to talk about the 178,000 restaurants owned by Republicans, Democrats, and Independents all across America in every single district that we have the privilege of representing.
Every single district has restaurants, and that is what we are here to talk about: how to get relief into the hands of those individuals who, for 2 years, have struggled under the most difficult economic circumstances any of us could ever imagine.
Let's make sure we keep our eye on the ball. Let's continue to focus on the question in front of the House.
Mr. Speaker, I yield 3 minutes to the gentlewoman from Pennsylvania (Ms. Scanlon), my friend and distinguished member of the Rules Committee.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I do want to just correct the record as it relates to the Energy and Commerce Committee. I think, just this morning, the committee held a hearing with the heads of oil companies, multinational oil companies, to bring them in to talk about why they refuse to increase supply, which would bring down the costs.
I didn't do exceptionally well in economics when I was in the State University of New York, but I do remember the old supply and demand issue. When demand is high and supply is low, prices rise. We are going to continue to work and push and urge those companies to increase supply to meet demand and bring the costs down.
There is not much we can do about what is going on in Ukraine, although we are desperately trying to help our brothers and sisters there defend their democracy, which has had an incredible impact on gas prices.
Let me also remind everyone who is tuning in, who is watching what is going on, that the issue before the House of Representatives today, the rule that is being considered, is dealing with the difficulties that have been faced by restaurants across this country during the pandemic, which has now lasted for nearly 2 years: the displacement of workers and the impact that it has had on communities all across this country. We are striving to achieve a solution here that will be good for everyone across all 50 States and these small businesses that continue to be the backbone of our local economies.
Mr. Speaker, I have been very grateful for the leadership of Mr. Blumenauer, who has led the charge on this issue for some time now. I think I have probably bothered him dozens of times to ask what we can continue to do to advance his efforts, and he has continued to provide leadership.
Mr. Speaker, I yield 3 minutes to the gentleman from Oregon (Mr. Blumenauer), the sponsor of this bill.
Mr. Speaker, I yield an additional 1 minute to the gentleman from Oregon.
Mr. Speaker, I yield 2 minutes to the distinguished gentlewoman from the State of Texas (Ms. Jackson Lee).
Mr. Speaker, I will say this, that I suspect when, hopefully, this bill becomes law and we have helped save the 178,000 restaurants around this country that a number of my colleagues on the other side of the aisle will be taking credit for it. I hope many of them vote for it despite their unwillingness to really have a conversation about it today and to talk about extraneous issues.
Before I reserve the balance of my time, I include in the Record a January 24, 2022, article from CNBC entitled ``National Restaurant Association asks Congress for more grant money as omicron hits industry.''
[From CNBC, Jan. 24, 2022]
National Restaurant Association Asks Congress for More Grant Money as
Omicron Hits Industry
(By Amelia Lucas)
The National Restaurant Association is asking Congress to
replenish the Restaurant Revitalization Fund as the Covid
omicron variant hits operators' businesses.
Last year, lawmakers created the $28.6 billion fund to aid
bars and restaurants struggling in the wake of the pandemic.
The grants were designed to make up for a restaurant's full
pandemic losses of up to $5 million for a single location or
$10 million for a business with fewer than 20 locations.
Publicly traded companies were ineligible, but their
franchisees could still apply.
Since the fund was depleted, restaurants have been pushing
for Congress to replenish it. Several lawmakers have
introduced legislation to do so, but the bills haven't gained
traction, and the Biden administration hasn't appeared
interested in supporting the measures.
But the latest surge in Covid-19 cases and its impact on
restaurants could change minds.
The National Restaurant Association's latest survey of
operators found that 88% of restaurants saw indoor dining
demand wane because of the omicron variant. More than three-
quarters of respondents told the trade group that business
conditions are worse now than three months ago. And the
majority of operators said their restaurant is less
profitable now than it was before the pandemic.
``Alarmingly, the industry still hasn't recreated the more
than 650,000 jobs lost early in the pandemic, a loss 45
percent more than the next closest industry,'' the trade
group's top lobbyist, Sean Kennedy, wrote in a letter to
congressional leadership for both parties.
Kennedy also touted the benefits of the first round of RRF
grants. The trade group estimates that more than 900,000
restaurants jobs were saved by the initial round of funding,
and 96 percent of recipients said the grant made it more
likely they could stay in business. A full replenishment of
the fund would save more than 1.6 million jobs, according to
the trade group's estimates.
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, first let me thank my colleague and friend, Mrs. Fischbach. We spend a lot of time together in the Rules Committee, and I always appreciate our conversations. While we may not agree on issues from time to time, I always appreciate her earnestness, and I appreciate her good work.
I want to thank all of my colleagues for their words in support of the rule before us today.
As I mentioned earlier, Congress acted last year to provide much- needed relief for restaurants and other small businesses, but we must do much more. Our economy simply cannot survive without small businesses, and it is paramount that we redouble our commitment to ensuring their continued success.
I pledge to always be an ally in that fight, and I know my colleagues join me in that. I look forward to voting in favor of this effort to bring much-needed relief to local restaurants and the small business community.
Mr. Speaker, I urge a ``yes'' vote on the rule and the previous question, I yield back the balance of my time, and I move the previous question on the resolution.