Emergency FY 2020 Budget Supplemental: $45.8B Request for COVID-19 Response

Published: March 19, 2020

Federal Market AnalysisBudgetCoronavirus (COVID-19) Pandemic

OMB submits another request to Congress for supplemental emergency funding in response to the COVID-19 outbreak, this time for $45.8B. Deltek provides an agency-by-agency breakdown of that request.

Key Takeaways

  • OMB requests $45.8B from Congress to help agencies fund areas such as IT enhancements for telework, deep cleaning of facilities, and overtime costs for personnel in relation to the COVID-19 outbreak.
  • Health-centered federal agencies, VA and HHS, lead the request for additional funding with $16.6B and $11.6B, respectively.
  • The funding request allows additional legislative authorities to help relax the red tape among government regulations surrounding federal pay and transfers of funds.
  • GSA is set to expand use of other than competitive procedures among federal agencies for COVID-19-related procurement. Moreover, the agency will remove certain provisions in bid protests to accelerate implementation of such acquisitions.

As the impact of the COVID-19 pandemic reaches new heights throughout the U.S., the Trump Administration continues to seek additional emergency funding for federal agencies to keep government functions and services grinding away.

In addition to the $8.3B legislation to aid agencies such as HHS, State and SBA in the pandemic, and the Families First Coronavirus Response Act to support subsistence programs, OMB is requesting $45.8B in supplemental FY 2020 funding to help boost capabilities for an array of federal agencies. The March 17th letter also seeks to amend FY 2021 budget request levels, seeking an additional $1.3B at the CDC and $440M at the NIH, both under HHS.

With healthcare missions central in the fight against the COVID-19 outbreak, the VA ($16.6B) and HHS ($11.6B) make up 62% of the total supplemental funding request. Following close behind is the DOD, with $8.3B to help minimize the impact of the pandemic on mission readiness and provide provisions for service members and their dependents.

Throughout the request, the Administration seeks additional funding to deep clean and disinfect federal buildings and outreaches (think- affected schools, airports and DOI facilities), and outfit public-facing federal employees with personal protection equipment. Nearly every agency in the request is seeking additional funding to cover overtime, hazard pay and overhead costs for federal employees impacted by COVID-19. Many agencies (i.e. Education, DOI, DOT and DOE) and the federal courts need additional funding to bolster IT capabilities for expanded telework taking place among their workforce, and the VA needs IT enhancements for increased telehealth services at the agency. Requests include additional software licenses, purchase of mobile devices, increased network/bandwidth and strengthened cyber capabilities.

In addition to specific budgetary provisions, the OMB request seeks additional legislative and procurement authorities to aid in the rapid response to COVID-19. For example, additional authority is proposed for agencies such as USDA, DOD, HUD and VA to reprogram existing funding or transfer funds between accounts to effectively fight the outbreak. Furthermore, GSA seeks expanded procurement authorities for agencies to utilize other than competitive procedures towards particular COVID-19 procurements, and the relaxation of protest limitations to accelerate mission delivery of contract in COVID-19 efforts.  

Refer to Deltek’s attached deliverable, Emergency FY 2020 Budget Supplemental: $45.8B Request for COVID-19 Response, for a line-by-line breakdown of each agency’s latest funding request to combat the COVID-19 crisis.