Phillips Calls for Additional Support for Minnesota Businesses Distressed by the COVID-19 Pandemic

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In letters to state and local leaders, Phillips cited live events, hospitality, travel, and fitness industries as sectors hit hardest

WASHINGTON DC — Today, Rep. Phillips released letters sent to Gov. Tim Walz, Minnesota House Speaker Melissa Hortman, Minnesota Senate Majority Leader Paul Gazelka, and Hennepin County Commissioners requesting their continued support for Minnesota’s small businesses impacted by the COVID-19 pandemic.  

“While many industries are quickly recovering from the pandemic, there remain many who are still experiencing severe revenue declines and have few – if any – options for economic relief, forcing them to consider layoffs or even closure,” Rep Phillips says in the letter. “I know the challenges of finding common ground in this day and age, but I am hopeful that there will be agreement on the need to support those small businesses hardest hit by the pandemic, especially those for whom no targeted relief is available at the state or federal level.”

Last year, Congress created a number of relief programs targeted to America’s small businesses, including the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL) program, the (SVOG) program, and the Restaurant Revitalization Fund (RRF). Together, these programs saved millions of jobs and countless small businesses, helping pave the way for the economic recovery that has already begun. 

(See also: Reps. Phillips, Van Duyne Introduce Bipartisan Restaurant Recovery Fairness Act)

Earlier this year, Rep. Phillips supported and helped pass the American Rescue Plan, which sent $2.8 billion to the state of the Minnesota through the State and Local Fiscal Recovery Fund. Among eligible uses for these funds are loans and grants to small businesses to offset the economic hardships posted bysteep declines in revenue, temporary closures, and efforts to enhance safety in the face of the COVID-19 pandemic.

Full text of the letter below:  

I write today to encourage your continued support for Minnesota’s small businesses, especially those hit hardest by the COVID-19 pandemic. As we all know, these businesses are vital to the long-term economic health of our state, not to mention their many contributions to the quality of life in our communities, making them deserving of additional relief at the state and federal levels. 

As you know, Minnesota will receive a total of $2.8 billion in federal aid through the State and Local Fiscal Recovery Fund established by the American Rescue Plan, which I proudly supported. Among the eligible uses for these funds are loans and grants to small businesses to offset the economic hardships posed by steep declines in revenue, temporary closures, and efforts to enhance safety in the face of the COVID-19 pandemic. While I appreciate the inclusion of $70 million for grants to small businesses in the recently-enacted Omnibus Jobs Bill, the need for targeted relief remains, and my hope and my request is that a substantial fund is set up using a portion of the remaining federally allocated dollars. 

Minnesota does not bear this responsibility alone. Congress created a number of relief programs targeted to America’s small businesses, including the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL) program, the Shuttered Venue Operator Grant (SVOG) program, and the Restaurant Revitalization Fund (RRF). Together, these programs saved millions of jobs and countless small businesses, helping pave the way for the economic recovery that has already begun. 

Still, these programs were never intended to address the entirety of the need, which is why I supported the substantial state and local recovery funds included in the American Rescue Plan, and the flexibility to use them in a way that best addressed each state’s unique needs. And while many industries are quickly recovering from the pandemic, there remain many who are still experiencing severe revenue declines and have few – if any – options for economic relief, forcing them to consider layoffs or even closure. 

This is especially true for those businesses which rely on in-person service or gatherings, including the myriad of businesses that make up our once-thriving live events, travel, and hospitality industries, as well as gyms and fitness centers. I have heard from countless small business owners representing these industries who are desperately searching for options to keep their businesses afloat until the recovery reaches them, and I encourage you as elected leaders of our state to respond with additional relief to these businesses in particular as you consider the various options for uses of the federal ARP funds – especially as federal programs come to an end, or find themselves overextended. 

I know the challenges of finding common ground in this day and age, but I am hopeful that there will be agreement on the need to support those small businesses hardest hit by the pandemic, especially those for whom no targeted relief is available at the state or federal level. Wisconsin recently authorized $480 million from their ARP allotment to fund grants to roughly 96,000 businesses in their state, and others have created similar programs as well. You are the experts when it comes to the needs in our state, and it is my hope that you will be able to identify an amount that meets that need. 

Thank you for your leadership of our state in these challenging times, and for showing the entire nation that good work can get done even in divided government. I stand ready to support you in whatever way I can. In the meantime, I am grateful for your consideration of this request.

Speaker Hortman Issues Statement About Rep. John Thompson

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SAINT PAUL, MINNESOTA — Speaker of the House Melissa Hortman issued the following statement.

“The Minnesota House of Representatives takes allegations of member misconduct seriously. 

“There is a process in place pursuant to House Rule 6.10 whereby two or more members of the House may file a complaint about conduct by a member that they allege violates a rule or administrative policy of the House, violates accepted norms of House behavior, betrays the public trust, or tends to bring the House into dishonor or disrepute. Such a complaint, if filed, would be referred to the House Ethics Committee. To date, no House members have filed an ethics complaint regarding the allegations made against Representative Thompson.

“As in other instances of alleged member misconduct, in the absence of a formal ethics complaint, in my role as Speaker I will work with counsel to thoroughly investigate the law and facts, compare the alleged misconduct to prior allegations of wrongdoing by members of the Minnesota House and the resultant consequences, and act accordingly.”

Minnesota House approves bipartisan tax bill

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SAINT PAUL, MINNESOTA — This afternoon, the Minnesota House of Representatives approved a bipartisan compromise with the Minnesota Senate that will provide targeted tax cuts to workers and small businesses harmed by the pandemic, expand the Working Family Tax Credit, and provide new aid for counties to fund services and programs that prevent family homelessness. 

“This is a tax bill that helps both workers who lost their jobs and the small businesses that fell on hard times during the pandemic,” said Rep. Paul Marquart (DFL-Dilworth), chair of the House Taxes Committee. “As Minnesota rebounds from a global pandemic, there is more work to do to level the playing field, bring about more fairness in our tax system, and fund important investments in people.”

The Legislature’s bipartisan tax bill uses federal aid from the American Rescue Plan to provide targeted tax cuts for workers who received unemployment insurance benefits and small businesses that received federal Paycheck Protection Program loans. Democrats say a deal without benefits for both workers and small businesses would have been unacceptable. 

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House approves compromise Public Safety and Judiciary Budget

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SAINT PAUL, MINNESOTA – Yesterday, the Minnesota House passed the compromise Public Safety and Judiciary budget bill and amended it to include sign and release warrants. In addition to funding the Department of Public Safety, the Department of Corrections, the Department of Human Rights, and the judicial branch, the bill includes several criminal justice and police accountability reforms which House DFLers have been advocating for all session. However, Senate Republicans rejected many other meaningful changes Minnesotans have been calling for to ensure communities can receive justice.

“Our budget agreement advances several important solutions to help Minnesotans experience public safety in their communities, but it’s incredibly disappointing Senate Republicans refused to accept some of the most meaningful reforms we put forward, including those with bipartisan support,” said Rep. Carlos Mariani (DFL – Saint Paul), chair of the House Public Safety & Criminal Justice Reform Committee. “One conviction and one prison sentence of one police officer doesn’t heal the trauma with which our communities continue to live. It’s not acceptable for a system that has failed too many Minnesotans to allow peace officers – with the solemn duty to protect and serve – to largely continue operating with impunity and a reckless disregard for human rights. As a result of the shortcomings within the budget compromise, we commit to continue this important work until we ensure all of those who betray the public’s trust can be held accountable, and Black, Indigenous, and Minnesotans of color can be treated with the dignity and respect they deserve. We welcome the Governor’s executive actions, which are necessary due to the Republican Senate’s failure to respond to Minnesotans’ calls for greater accountability for law enforcement.”

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Rep. Melissa Hortman (HD36B) Update: May 27, 2021

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Dear Neighbors,

I hope you are staying safe and healthy. After more than a year of a pandemic, it’s looking more and more like a typical, wonderful Minnesota summer is ahead of us. COVID vaccines are safe, effective, and are bringing back a sense of normalcy that we have been missing for so long. If you haven’t gotten your vaccine yet, visit the Vaccine Connector to find a vaccine site near you. The state also has a number of community vaccination sites that are accepting walk-ins. 

On another happy note, today is my birthday! I am officially past the half-century mark, and I intend to celebrate my birthday by eating chocolate cake in between negotiation meetings and phone calls.

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Statement from Speaker Hortman and Majority Leader Winkler on bipartisan budget agreement

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SAINT PAUL, MINNESOTA — Minnesota House Speaker Melissa Hortman and Majority Leader Ryan Winkler released the following statement on today’s bipartisan budget agreement:

“I am pleased we have reached an agreement on the framework for a bipartisan budget that prioritizes students, families, workers, and small businesses,” said Speaker Hortman. “After a year of unprecedented challenges, we have the resources to help the Minnesotans who have sacrificed the most while investing in a Minnesota that works better for everyone. This budget makes significant investments in E-12 education to help our students recover from a difficult year and works to close our opportunity gaps. House DFLers also remain committed to including meaningful criminal justice reforms in our final budget. While this agreement does not contain everything we would have liked and the need for ongoing investment in the future remains, we worked together and achieved a compromise that is in the best interests of Minnesotans.” 

“Families and workers are finding it more difficult to get ahead. Thanks to President Biden and Democrats in Congress, there are significant resources to help Minnesotans who are struggling the most, but it doesn’t change the fact that Minnesotans’ needs are not being met by current levels of investment,” said Majority Leader Ryan Winkler. “For too long, Minnesota put the rich and well-connected first. Thanks to the House DFL Majority and Governor Walz, Minnesota is now moving in a direction that provides a world-class education, affordable child care, and financial security for all — no matter where you live or what you look like.” 

Speaker Hortman and Majority Leader Winkler on Governor Walz’s timeline to end COVID-19 restrictions

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SAINT PAUL, MINNESOTA — Minnesota House Speaker Melissa Hortman and Majority Leader Ryan Winkler released the following statements on Governor Walz’s timeline to end COVID-19 restrictions:

“Minnesotans have done a great job rolling up their sleeves and getting vaccinated, and that has gotten us close to the end of this pandemic,” said Speaker Hortman. “It’s my hope that Minnesotans continue getting vaccinated so that we can stay ahead of any variants, get our state fully opened, and get back to the things we have missed since COVID-19 started.”

“With new leadership in the White House and Minnesota’s robust public health infrastructure leading the nation in vaccine distribution, the end of this pandemic is near,” said Majority Leader Ryan Winkler. “From the start, Republican politicians told Americans COVID-19 was ‘just the flu’ and Donald Trump told us it would go away ‘like a miracle.’ Democrats are defeating COVID because we have taken a public health approach informed by scientists, not armchair epidemiologists.”

Minnesota House Approves Eviction Moratorium Off-Ramp

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SAINT PAUL, MINNESOTA – Today, the Minnesota House approved an orderly off ramp of the eviction moratorium declared by Gov. Walz last year that will prevent a wave of evictions while ensuring landlords are made whole for rent that is owed to them. The bill provides a roadmap to transition off the current residential eviction moratorium by ensuring renters have enough time to access federal funding for rental assistance when the COVID-19 related peacetime emergency ends and provides clarity to the process.

 “As more vaccines become available, the pandemic is easing, yet there are still many of our neighbors who are unemployed and face the risk of eviction.” said Rep. Alice Hausman (DFL-Saint Paul), chair of the Housing Finance and Policy Committee. “The eviction moratorium reduced the spread of COVID-19 and protected the most vulnerable Minnesotans from the threat of losing their home. We must continue to protect those Minnesotans once the eviction moratorium is lifted, and this bill provides a realistic timeline for both landlords and tenants to access the rental assistance that will keep people in their homes.”

“We hope the end of the pandemic is in sight, but we don’t want to replace a public health crisis with an eviction and housing crisis for Minnesotans,” said House Speaker Melissa Hortman. “Stable housing is the foundation for success for individuals and families. We must ensure a smooth, stable transition as we get to a post-COVID world and the end of the eviction moratorium.” 

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Minnesota House advances Health and Human Services budget package

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SAINT PAUL, MINNESOTA – Today, the Minnesota House passed its Health and Human Services Budget aimed at building a better health system for Minnesotans after the COVID-19 pandemic. The budget strengthens our public health systems, addresses health inequities, makes prescription drugs more affordable, and expands coverage for low-income Minnesotans. The bill also includes needed investments in affordable child care for Minnesota families.

“This legislation builds a better health care system for Minnesotans, especially our public health care system which our entire state has relied upon throughout the COVID-19 pandemic,” said Rep. Tina Liebling (DFL – Rochester), Chair of the House Health Finance & Policy Committee. “This budget expands important health care coverage in numerous areas and will strengthen health and wellbeing for children and families. The bill also reaches underserved populations and has solutions to reduce health inequities. These important investments will help more Minnesotans have a healthy future and better quality of life.”

During COVID-19, many Minnesotans found telehealth valuable, and the budget expands and enhances these emerging services. As more Minnesotans worry about the future of affordable health care – even those who have coverage through their employer – the budget will launch a study of a MinnesotaCare public option. Furthermore, as Republicans continue to attack the Affordable Care Act in court leaving the future of its critical protection’s uncertain, the budget codifies important ACA provisions – like those protecting people with preexisting conditions – into state law. The bill also eliminates the “family glitch,” a problem occurring when an individual is ineligible for MinnesotaCare because they have access to employer coverage through a family member, even though the coverage is unaffordable.

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Speaker Hortman, Majority Leader Winkler issue statements about Census results, impact on redistricting

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SAINT PAUL, MINNESOTA — Today the U.S. Census Bureau released new data to determine each state’s number of congressional seats and Electoral College votes for the next decade. Minnesota’s number of congressional seats remains unchanged at eight. Data released today is not used to determine new boundaries for new legislative districts. 

“Minnesota has a long history of good government and strong civic engagement. Thanks to Minnesotans’ excellent response to the census, Minnesota has retained eight Congressional districts. This is an important achievement for all of us. Congressional district allocation from the Census Bureau is an early and important step in Minnesota’s redistricting process. Minnesotans deserve an open and transparent redistricting process that results in a fair map,” said Speaker Hortman. “House Redistricting Chair Mary Murphy is well-qualified to take on this important work. She has the trust of Minnesotans in both parties and has an unassailable reputation for fairness. Now we anxiously await additional population data from the Census Bureau that is essential for the House Redistricting Committee to draw new districts.”

“Minnesotans expect their Legislature to draw fair maps and involve the public in drawing those maps,” said Majority Leader Ryan Winkler. “The census data released today makes clear how important that work is, and we are committed to district maps that all Minnesotans can trust and have confidence in.”