Defense contracting is among the areas addressed in the 883-page Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (H.R. 748), which was passed by the Senate on March 25, 2020.

The $2 trillion bill provides spending in a wide range of areas intended to help businesses and people affected by the coronavirus (COVID-19) crisis. The bill now moves to the House for consideration.

Of interest to defense contractors, the Senate bill includes $1.45 billion in Defense Working Capital Funds to combat COVID-19. The bill also removes a $1 billion cap on advance billings for Defense Working Capital Funds (Sec. 13003) to “improve DoD flexibility in responding to COVID-19 effects and ensure supply chain stability,” according to a Senate Appropriations Committee summary of the bill. Defense Working Capital Funds are revolving funds that DoD uses to finance operations. The bill also provides an additional $1 billion for Defense Production Act purchases (which could be used to produce personal protective equipment and medical equipment) and $3.8 billion for a Defense Health Program that includes funding for research and development as well as testing and evaluation in response to COVID-19.

Click here to read the full blog post on Coronavirus (COVID-19): Guidance for Businesses.