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On March 19 Congress passed the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), a $2 trillion package of relief funds to address the impacts of the coronavirus pandemic. The legislation covers a wide range of initiatives across program areas. This is an overview of three key provisions in the CARES Act with estimates of Florida’s share of funding.
The CARES Act includes a $150 billion Coronavirus Relief Fund (CRF) for states to address the impacts of the coronavirus crisis. The CRF includes $3 billion for Washington DC and U.S. territories and $8 billion for Tribal governments. Each state will receive at least $1.25 billion, and a portion will be shared with local governments with populations over 500,000.
Florida is expected to receive $8.3 billion, nearly $2.5 billion of which will go to local governments. These funds, which will be available through the calendar year, can be used to cover the costs that the state incurred and extra spending necessitated due to the crisis. Local governments will have to submit a certification to the Department of the Treasury that the proposed uses are in accordance with the stipulations in the CARES Act in order to receive the funds.
The CARES Act provides $30.75 billion to support states’ K-12 and higher education systems. These funds will be available through September 30, 2021, covering the entire 2020-21 academic year.
The allocation for each state is based on its share of Title I and Pell Grant students. Florida is estimated to receive a total of $1.7 billion:
The CARES Act provides for one-time payments to individuals and families to help provide an additional boost to incomes as people experience widespread economic uncertainty. Payments will be $1,200 per individual and $500 per child, phasing out for individuals with incomes above $75,000 and married couples with incomes above $150,000. The average rebate amount for different income groups in Florida is estimated in Figure 1.
Florida’s economic makeup and tax structure make the state particularly vulnerable to economic fluctuations, and by most estimates the COVID-19 recession will cause a massive economic disruption. While it is unclear exactly how much Florida’s revenue and economic activity will be impacted, looking at the state’s economy and at the previous recession can provide some perspective.
Almost 80 percent of Florida’s general revenue comes from the sales and use tax, creating a very unstable base for Florida’s tax system. Of particular concern is Florida’s reliance on tourism spending. During FY 2017-18, sales tax revenue generated by tourists totaled over $3.22 billion and accounted for 10 percent of Florida’s total general revenue. In its most recent Long-Range Financial Outlook, the state’s Office of Economic and Demographic Research noted that “tourism-related revenue losses pose the greatest potential risk to the economic outlook.” It also provided a list of threats to tourism including two of note: “disease outbreaks” and “federal policy or administrative changes that make it harder or less attractive to travel.”
The exact amount of revenue losses that Florida will incur due to the coronavirus crisis is not yet known, but it is likely to be significant. In the three years between FY 2006-07 and FY 2008-09, Florida’s general revenue decreased each year (see Figure 2). In total, Florida lost more than $6 billion in revenue, with the greatest drop of 12.8 percent occurring between FY 2007-08 and FY 2008-09. With the social distancing measures and “stay-at-home” orders limiting travel, the closing of Florida’s state parks and tourist attractions, and massive job losses, the impact on state revenue will likely be much more severe this time around.
Moody’s Analytics chief economist, Mark Zandi, has described the COVID-19 recession as an “economic tsunami” with no historical precedent. The coronavirus has caused a sudden stop in economic activity. The country has seen the first wave of impacts with job losses in key industries. Moody’s estimates that nationally 18 million jobs have been impacted, many in the leisure and hospitality and travel industries, both a significant part of Florida’s economy.
This is evident in the unprecedented number of unemployment claims filed by Floridians in the past few weeks. Figure 3 below shows weekly unemployment claims between December 2007, the official start of the Great Recession, and the last week for which data is available, March 28, 2020.
The more than 228,000 claims filed the week of March 28 far surpasses the peak of claims filed during the height of the Great Recession, which at that time had been the highest number of unemployment claims the state had seen in decades. The Economic Policy Institute (EPI) projects that 1.3 million jobs will be lost in Florida (17 percent of total private-sector employment), with a projected unemployment rate of 15.5 percent for July 2020. By comparison, Florida’s unemployment rate reached a high of 11.3 percent in January 2010.
EPI also indicates that the leisure, hospitality, and retail sector accounts for a third of private-sector employment in Florida. These low-paying jobs already had many of Florida’s workers in a precarious financial state, as wages were hardly enough to keep up with the state’s rising cost of living. United Way’s ALICE report shows that 46 percent of Florida’s families did not have enough income to meet basic needs. The prospect of long-term unemployment will be devastating for these families.
Moody’s also estimates a $10 trillion decrease in household stock wealth, half of which is owned by baby boomers. In a recent webinar, Zandi noted that 25 percent of the assets owned by people between the ages of 50 and 70 is in publicly traded stocks. As the value of these assets decrease, spending by this age group will constrict, which in itself will have a considerable impact on the national economy. In Florida, this age group constitutes over a quarter of the population (26 percent) – a loss of wealth and consumer spending among this group will have ripple effects throughout the state.
The CARES Act provides much-needed resources to address urgent needs as states face uncertainty. But, unlike the state aid provided in the previous recession through the American Recovery and Reinvestment Act of 2009, funding in the CARES act is short-term. The CRF funds must be expended by December 30 of this year, the education funding covers just one academic year, and the individual refunds are a one-time payment. Florida’s workers, families, and communities will be living with the economic fallout from the coronavirus crisis for much longer.
During the Great Recession, state revenue losses occurred over multiple years, and the impacts were felt far beyond the official end date of the recession. In fact, Florida continues to be impacted by the Great Recession, as the state’s investment in public services remains below pre-recession levels. Even when the overarching economic indicators showed that Florida’s economy was on a rebound, there were still communities who were left out of the economic growth: workers in low-paying industries, communities of color, and Floridians with low income.
The indicators discussed above point to a recession unlike any other the nation has experienced. This calls not only for increased aid to meet Floridians’ needs during crisis, but also to reevaluate the Sunshine State’s values and priorities so that the economic foundation provides access to opportunity for all Floridians. While the CARES Act is a critical and needed intervention, it is only the beginning of what the state will need in order to stave off severe cuts to programs and services and make proactive investments in the future.
American Rescue Plan Act Changes. The American Rescue Plan Act of 2021 extended PEUC and PUA benefits through the week ending September 6, 2021. It also increased the maximum duration of PEUC benefits ($300 a week) to 53 weeks and the maximum duration of PUA to 79 weeks. Although PEUC and PUA did not end until September 6, 2021, Florida withdrew from the Federal Pandemic Unemployment Compensation Program (FPUC) effective June 26, 2021. FPUC provided persons who were out of work due to COVID-19 with an additional $300 a week in unemployment insurance.
Reemployment Assistance weeks reverted to 12 effective January 1, 2022. DEO determines the maximum number of weeks available to RA claimants based on a statutory formula that looks at the average unemployment rate for the most recent third calendar year quarter (i.e., July, August, and September). Based on the downturn in unemployment, the maximum number of weeks for RA reverted to 12 effective January 1, 2022.
RA work-search and work registration requirements reinstated on May 30, 2021. Persons filing an application for RA benefits beginning March 15, 2020, are not required to complete work registration in Employ Florida through May 29, 2021. In addition, work search requirements for individuals requesting benefits for the weeks beginning March 15, 2020, were also reinstated on May 30, 2021.
RA biweekly reporting requirements reinstated. Although previously waived, biweekly reporting was reinstated effective May 10, 2020. DEO’s guide to claiming weeks is here.
Mobile app deployed. DEO has deployed a mobile app for RA applications.
DEO announces extended benefits. DEO announced implementation of Extended Benefits (EB).
Resources and guidance. For a list of resources and guidance from the United States Department of Labor on unemployment insurance and COVID-19, go here.
For DEO’s “Reemployment Assistance Frequently Asked Questions and Additional Resources,” updated 12/30/2020, go here.
For DEO’s latest claims data, go here.
Re-employment Assistance (RA) Department of Children and Families (DCF) Multi-Program PoliciesDCF opens offices. DCF has reopened its brick-and-mortar storefronts, which were previously closed due to coronavirus.
DCF adds call center numbers. DCF has added a call center number for Monday through Friday, from 7 a.m. to 6 p.m. Call center numbers now include 850-300-4323, 866-762-2237, or TTY 1-800-955-8771.
Certification periods extended by 6 months only through August 2020. Certification periods for cash, food and medical assistance were extended by 6 months for individuals and families scheduled to recertify in April through August 2020. FNS’ approval of the SNAP extension for August is here. However, effective September 1, 2020, SNAP, TANF and Medicaid recertifications have been reinstated, although DCF says that no one will lose Medicaid due to recertification.
DCF allows phone interviews. Phone interviews are now being used for TANF cash and SNAP food assistance.
Mandatory work requirements suspended only through May 2021. Under a directive from Governor DeSantis to waive work requirements for safety net programs, DCF waived work requirements for individuals participating in the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) through May 2021. To do this, DCF explains that it partnered with the Department of Economic Opportunity to apply “good cause” statewide for TANF and SNAP recipients who would otherwise be subject to participation in mandatory work requirements as a condition of receiving those benefits. Through May 2021, persons who were sanctioned in the past due to work requirements will be able to reapply and participate in SNAP or TANF again.
Emergency allotments (EA) ended. DCF automatically supplemented SNAP allotments of current recipients up to the maximum for a household’s size for July 2021. However, EA was discontinued beginning August 1, 2021.
The SNAP benefits increase by 15 percent ended in October 2021. Floridians who participate in SNAP to put food on the table will receive a temporary 15 percent supplement to SNAP under COVID relief passed by Congress and extended by the American Rescue Plan Act through September 2021.
FNS permanently increases SNAP through revamp of the Thrifty Food Plan. Effective October 2021, FNS has mandated a permanent increase to SNAP through a revamp of the Thrifty Food Plan. DCF says that the increase amounts to about 6% for Floridians.
Time limits suspended. SNAP time limits are suspended during the COVID-19 public health emergency. No one in Florida should be barred from SNAP due to time limits, even if they exhausted their time limit in the past.
Florida granted waiver to allow families to purchase groceries online. DCF has been granted a federal waiver to permit the State of Florida to launch a pilot project statewide effective April 21, 2020, that allows families to purchase groceries online with their Electronic Benefit Transfer (EBT) card instead of going into stores.
No Medicaid terminations from March 2020 through the end of the federal public health emergency. The national public health emergency has existed since January 27, 2020 and has been renewed by the Secretary of the U.S. Department of Health & Human Services in 90-day increments since that time. The most recent renewal is effective January 16, 2022.
On March 31, 2020, AHCA alerted providers and DCF posted on the ACCESS website that:
Redetermination/recertification times are reinstated. As of October 1, 2020 AHCA's website is alerting recipients that the Department of Children and Families is now mailing letters for case reviews to check if a household is still eligible for Medicaid and/or Medically Needy. AHCA is urging people receiving these letters to take steps now to re-apply. But note, Medicaid coverage will not end during the COVID-19 Public Health Emergency. In January 2021 DCF conducted one-year “automated renewals” for people whose sole income is social security and SSI and are enrolled in an SSI-related Medicaid program (e.g., MEDS/AD, Medically Needy and Medicare Savings Programs). People getting VA income were not included in the automated renewal.
Extended application time. Effective with applications filed in February 2020, the time for submitting documentation required to process an application is extended for 120 days from the date of the application and eligibility will still be effective the first day of the month the application was received. Effective July 1, 2021, this policy has been rescinded. Medicaid applications submitted on or after July 1, 2021 may be denied on the 30th day after application or the day after verification information is due. Applications filed prior to July 1, will be allowed 120 days to provide requested verification to establish Medicaid eligibility.
Exclusion of additional unemployment payments in determining eligibility. The $600/week of additional unemployment insurance payments under the CARES Act will not be counted as income in determining Medicaid eligibility. (However, these payments will be counted as income in determining marketplace subsidy calculations.)
Coverage of Medicaid services during the state of emergency
COVID-19 Vaccines for Medicaid Enrollees. In an executive order published March 16, 2021 Governor DeSantis revised the vaccine distribution plan, which applies to the general public including Medicaid enrollees, to lower the age requirement to 40 effective March 29, 2021 and then effective April 5, 2021 all Floridians are eligible to receive any COVID-19 vaccination approved by the Food and Drug Administration.
Medicaid enrollees eligible to receive the vaccine may visit myvaccine.fl.gov to find a location distributing the vaccine and to schedule an appointment.
On March 12, 2021, AHCA published instructions for Medicaid enrollees on how to obtain Medicaid transportation once they have scheduled an appointment for a vaccine. AHCA states: "Florida Medicaid will take you to get the COVID-19 vaccine at no cost. All you need to do is set up a time to get your vaccine. Next, let your Medicaid plan know you need a ride and they will take care of the rest. If you are not enrolled in a plan, call the Medicaid Helpline at 1-877-254-1055 to find out the name and phone number for a transportation service."
The state has also recently launched a new email system to help bring COVID-19 vaccines to homebound seniors. Seniors will be able to sign up to have the vaccine come to them by emailing a request to HomeboundVaccine@em.myflorida.com.
AHCA has posted Medicaid Alerts and FAQs providing more detail on Medicaid service changes in response to COVID-19. They address a wide range of topics including, but not limited to: telemedicine guidance for medical, behavioral health, and early intervention services providers; long-term care provider network flexibilities allowing more types of providers to deliver specified long term care services; and continuity of care for adult day care center enrollees during the time these centers are closed.
AHCA is loosening coverage restrictions for behavioral health services. Effective May 5, 2020, all prior authorization requirements for mental health or substance use disorder treatment are waived and service limitations (frequency and duration) are lifted. For behavioral analysis services, current authorizations will be extended through an "administrative approval process" which does not require providers to reassess beneficiaries currently getting services. Effective July 1, 2021 service limits will be reinstated for behavioral health services and effective July 15, 2021 Medicaid prior authorization requirements will be reinstated for behavioral health services.
Per a May 29, 2020 provider alert, during the state of emergency AHCA will be reimbursing providers for telemedicine well-child visits provided to children older than 24 months through age 20. Providers are directed to actively work to schedule follow-up in-person visits to administer immunizations and other physical components of the exam which cannot be accomplished through telemedicine.
Coverage of home and community-based waiver services (HCBS) - In response to the public emergency, Florida obtained approval from the federal government to make changes in HCBS waiver programs, including the Long Term Care and Developmental Disabilities programs. The changes are effective retroactively from January 27, 2020 to January 26, 2021. Details can be found here. They include, but are not limited to:
Note on COVID-19 testing, treatment, and vaccines for the uninsured. Florida has not opted to receive 100 percent federal Medicaid funding for COVID-19 testing of people without health insurance. Under the 2021 American Rescue Plan Act this option has been expanded to cover COVID-19 treatment and vaccines for the uninsured as well. Since the state has not taken up this option Floridians must look to an uneven patchwork of free testing, treatment, and vaccine resources scattered around the state. AHCA advises that uninsured people may receive free testing from their county health department or a federally qualified health center and that “many communities provide testing for free for individuals who do not have insurance. Please [click here] to find a test site in your area. Uninsured individuals should ask before the test whether testing is free of charge." There are no state agency instructions on where uninsured people can receive free treatment. However, more information on possible sources for free treatment is available here.
Residency proof no longer required at some vaccine sites, “paving the way for migrants.” - On April 29, 2021 Surgeon General Rivkees issued a new public health advisory specifying that COVID-19 vaccines are available to “a Florida resident” or someone “who is present in Florida for the purpose of providing goods or services for the benefits of residents and visitors of the State of Florida.” This new policy applies to all state-run and federally supported vaccination sites. It rescinds an advisory issued in January that had restricted vaccinations to people who could show proof of Florida residency
2021 unemployment compensation claimants can access free or reduced cost health insurance through the ACA marketplace. The Affordable Care Act (ACA) Marketplace was re-opened in February 2021 to give people who need health insurance a new “special enrollment" opportunity to get covered. The 2021 American Rescue Plan eliminated or vastly reduced premiums for many people with low or moderate incomes.
Starting July 1, 2021, people who received or have been approved for unemployment compensation for any week beginning in 2021 can access free or reduced cost comprehensive health insurance plans through the ACA marketplace. This benefit is available regardless of someone's current income. To get this benefit, people must enroll in the marketplace no later than August 15, 2021. For help with enrollment, contact Covering Florida at 877-813-9115.
