April 5, 2022

U.S. House of Representatives
Washington, D.C. 20515

Dear Representative,

            You will soon be voting on H.R. 3807, the Restaurant Revitalization Fund (RRF) Replenishment Act of 2022.  H.R. 3807 would authorize $55 billion in additional COVID-19 pandemic relief that is not offset and would add to the national debt.  On behalf of the more than one million members and supporters of the Council for Citizens Against Government Waste (CCAGW), I urge you to oppose H.R. 3807.

            The RRF was created by the American Rescue Plan Act (ARPA) in an effort to alleviate the revenue losses restaurants faced following restrictions and mandates imposed during the COVID-19 pandemic.  ARPA provided $28.6 billion, and H.R. 3807 provides another $42 billion for the fund.  The RRF has been replete with wasteful and duplicative government spending.  Some restaurants that received RRF funds were also able to obtain money from similar programs created by state governments, and even with the extra money, the restaurants still closed their businesses.  The RRF has also been plagued by operational errors and mismanagement, including accepting and processing loan applications after the application deadline had expired and the fund had run out of money.  H.R. 3807 favors those businesses that were too late in applying for prior relief money through the RRF, and places other business owners who looked for alternatives or made changes to stay in business at a disadvantage. 

            H.R. 3807 also provides $13 billion for a new Hard Hit Industries Award Program (HHIAP) through the Small Business Administration (SBA).  The HHIAP would give small businesses with fewer than 200 employees a tax-exempt grant of up to $1 million.  The SBA distributed $416.3 billion in relief funds to businesses in fiscal year 2021 through the Paycheck Protection Program, the RRF, the Shuttered Venue Operators Grant Program, and the COVID Economic Injury Disaster Loan program.  Several of these programs helped small businesses in the wake of the COVID-19 pandemic, but it is clear that the federal government has already spent more than enough on pandemic recovery, with as much as $800 billion remaining unspent and many states flush with cash. 

            H.R. 3807 provides an additional $55 billion on pandemic relief that would cause inflation to continue to rise and lead to more duplicative and wasteful spending.  The bill’s proponents claim that the cost of the bill will be offset, but that depends on future recovery of COVID funds, which means there is no certainty that will occur.  For these reasons, I urge you to vote against H.R. 3807.  Any votes related to H.R. 3807 may be among those considered for CCAGW’s 2022 Congressional Ratings.

Sincerely, 

Tom Schatz 
President, CCAGW 

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