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January 26, 2022 - Brief Issue 280

The Coronavirus Daily Brief is a daily news and analysis roundup edited by New America’s International Security Program and Arizona State University.

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Top Headlines

Free Masks Now at U.S. Pharmacies (Health & Science)

A Drug for the Immunocompromised in Short Supply (Health & Science)

Xi’an Lockdown Ends After 32 Days (Around the World)

Israel’s Health Ministry Recommends 4th Covid Vaccine (Around the World)

EU Eases Travel Rules Within the Bloc (Around the World)

CDC Warns About Travel to Caribbean Countries (Around the World)

Transparency International: Human Rights Deteriorated Amidst Covid (Around the World)

New York Judge Rules State’s Mask Mandate Unconstitutional (U.S. Government & Politics)

Contractor Boasts 38% Margins as New York Rental Aid Runs Dry (U.S. Government & Politics)

U.S. Manufacturers Down to Five Day Supply of Critical Chips (U.S. Economy)

Kroger Workers Approve New Contract After Nine Day Strike (U.S. Economy)

GE Sales Fall 3% Amid Supply Chain Issues (U.S. Economy)

SATs to Go Virtual by 2024 (U.S. Society)

Survey: More Knowledge Workers Prefer Flexible Hours Than Remote Work (U.S. Society)

Big Winners of the Stay at Home Economy Like Netflix and Peloton Face New Challenges (U.S. Society)

Health & Science

There have been 72,178,003 coronavirus cases in the United States, and 872,126 people have died (Johns Hopkins). The United States has administered 536,347,783 vaccine doses, with 75.7% of all Americans having received at least one vaccine dose and 63.5% fully vaccinated. Among adults aged 18 or older 87.5% have received at least one dose, and 73.9% are fully vaccinated (U.S. CDC). 40.3% of fully vaccinated Americans have received a booster shot. Worldwide, there have been 359,059,307 cases of coronavirus, with 5,617,922 deaths.

Free Masks Now at U.S. Pharmacies 

The free, high-quality N95 masks have started to arrive at pharmacies and grocery stores nearly a week after the Biden administration announced it would distribute 400 million free masks to the public. "Every person is allowed up to 3 free masks pending availability," the Department of Health and Human Services states (NPR). The masks are coming from the Strategic National Stockpile, which has more than 750 million masks on hand. Walgreens is participating in the program and said on Tuesday that participating stores would have “signage indicating mask availability.” Grocery store chain Kroger said that its pharmacies throughout the Midwest and Southwest locations would be doling out masks as well. A full list of participating retail stores can be found on the CDC’s website. 

A Drug for the Immunocompromised in Short Supply

The U.S. Food and Drug Administration authorized Evusheld, an antibody-based drug that helps protect immune-suppressed people against Covid-19 for up to six months.  A company study showed that the drug reduced the risk of getting Covid-19 by 77%. But the drug is proving extremely difficult to get and some hospitals have even been using a lottery system to dole out their doses. Other hospitals, like the Mayo Clinic in Rochester, Minn., have ranked their patients by risk. The Federal government controls distribution of the drug and allocates doses based on each state’s adult population but doesn’t prioritize where the need is greatest, meaning some places, like Alaska, have more doses than they can use. The government has shipped about 300,000 doses so far of the 1.2 million doses that it ordered (NPR). 

Around the World

Xi’an Lockdown Ends After 32 Days

Starting on Monday, Jan. 31, the 13 million residents in Xi’an will be allowed to leave the city. It will mark the end of a 32-day lockdown as officials said the city had been downgraded to a “low-risk area” (NYT). The lockdown was prompted by an outbreak that included over a thousand infections of the Delta variant in December and was as severe as the first lockdown in the country in Wuhan, which happened two years ago. Xi’an has not had any cases since Jan. 21, according to health officials. The lockdown demonstrates the extreme measures China has taken to control the virus and raised humanitarian concerns following stories shared on social media about people struggling to get enough food or being denied medical care during the lockdown. 

Israel’s Health Ministry Recommends 4th Covid Vaccine

Israel’s Health Ministry advisory panel recommended a fourth dose of the Covid-19 vaccine for people over the age of 18, five months after the third shot or recovery from infection (I24). "The decision was made in light of the positive results showing three to five times protection against severe morbidity after the fourth dose, and protection against infection of about two times compared to those who are vaccinated with only a third dose," a statement from the Health Ministry stated. The Health Ministry Director-General Nachman Ash still needs to approve the recommendations.

EU Eases Travel Rules Within the Bloc

The European Union recommended that people who are fully vaccinated or recovered from the virus be allowed to travel within the bloc without testing or quarantine requirements in a sign that the virus is becoming part of everyday life (NYT). Under the new rules, which take effect Feb. 1, EU residents can move freely if they have: a digital vaccine certificate showing a full course of vaccination or a certificate showing recent recovery or a negative test result that is no older than 72 hours. Individual countries could still impose additional requirements for travelers. 

CDC Warns About Travel to Caribbean Countries

On Monday U.S. health authorities warned against travel to 15 countries and territories because of “high risk” levels of coronavirus (WaPo). The Centers for Disease Control and Prevention said “even fully vaccinated travelers may be at risk for getting and spreading COVID-19 variants” and issued Level 4 advisories. Authorities said to “avoid travel” to Jamaica, Saint Barthelemy, the Dominican Republic, and two island territories of France: Guadeloupe and Saint Martin in the Caribbean. The entire list of countries with travel warnings includes more than 100 destinations.  

Transparency International: Human Rights Deteriorated Amidst Covid

According to Transparency International’s annual corruption ranking that was published Tuesday the pandemic worsened existing issues with civil liberties and human rights (Guardian). The Corruption Perceptions Index (CPI) has become one of the leading trackers of public sector corruption and ranks 180 countries. Altynai Myrzabekova, Transparency International’s central Asia regional adviser, said: “2021 has been devastating for civil rights across eastern Europe and central Asia. Corrupt leaders repress all dissent – from opposition parties, to activists and the press.” She added, “While doing little to combat the Covid-19 pandemic’s impact on the population, governments have utilised it to further curb rights and freedoms, further entrenching authoritarianism.” The index reported 27 countries, including Canada, Cyprus, Lebanon, and Honduras, reached historic lows last year. Eastern Europe and central Asia saw a “vicious cycle of increasing authoritarianism, human rights abuses and corruption [where] political leaders used the Covid-19 pandemic as a pretext to reduce oversight and accountability for public procurement and foreign aid spending, from Albania to Kyrgyzstan,” according to the report. ​

U.S. Government & Politics

Bonus Read: “Ron Klain had the perfect résumé. His first year showed the limits of that experience,” (WaPo).

New York Judge Rules State’s Mask Mandate Unconstitutional

On Monday, a New York state judge ruled that New York’s mask mandate violated the state’s constitution and could not be lawfully promulgated without the state’s legislature (NYT). The New York Times writes, “Gov. Kathy Hochul had renewed a rule requiring masks or proof of vaccination at all indoor public places throughout the state in December, amid a winter virus surge, and said it would last a month. The state Health Department then extended the mandate an additional two weeks, to expire on Feb. 1.” However, State Supreme Court Justice Thomas Rademaker, ruled that the relevant authority is “entrusted solely to the State Legislature.” The State Attorney General’s office said it intends to appeal. Importantly the ruling allows local mask mandates to continue.

Contractor Boasts 38% Margins as New York Rental Aid Runs Dry

The Washington Post reports that the CEO of Guidehouse, the contractor handling New York’s emergency rental aid, boasted of achieving 38% margins in leaked video even as New York’s rental aid fund runs dry (WaPo). The Post writes, “Scott McIntyre, chief executive of Guidehouse, congratulated employees in a November presentation on doing a strong job of running the program and touted that the firm had earned $115 million in fees over six months, according to a video of the presentation obtained by The Washington Post.” In the video McIntyre stated, “We’ve earned $115 million in six months, with 38 percent margins, and we have a significant extension that is currently pending.” New York’s program has struggled. The Post explains, “New York’s program struggled out of the gate, as it failed to get any of the $2.4 billion the state was allotted to renters until August, according to the Treasury Department. It then dramatically increased its pace, making more than 108,000 payments on behalf of the state’s families. It has since run out of funds, prompting a lawsuit by a tenants’ groups against the state.” 

McIntyre’s remarks drew criticism from New York officials given this context. Justin Mason, a spokesman for the agency that oversees Guidehouse’s contract, stated, “It is beyond troubling that a company partially responsible for recurring technical issues in the processing of applications and payments for New York’s Emergency Rental Assistance Program would allegedly boast of its success in profiting off the misfortune of tens of thousands of New Yorkers adversely affected by the pandemic.” He added, “This Administration has been working to ensure that Guidehouse increases its efficiency and that the funding that helps tenants in need is maximized. Please be aware that New York State has not signed an extension of the contract while negotiations are ongoing to ensure these goals are met.” In a statement, Guidehouse said that the remark did not refer to profits, contending, “This number represents a Guidehouse-specific internal management reporting metric.” However, the Post writes, “two former Guidehouse executives said they were surprised McIntyre would use the 38 percent number if it did not reflect actual profit margins because, in their experience, Guidehouse generally accounted for the cost of delivering services before calculating margins.”

Chicago Teachers Union Leaders Face Internal Challenges

Politico’s “Illinois Playbook” reports that the leaders of the Chicago Teachers Union are facing an internal revolt and challenge as union elections approach in Spring (Politico). The union has made waves on the forefront of clashes between teachers and local governments over remote education and other school policies during the pandemic. In a video, the Members First Caucus contended that the current leadership which they are challenging, “sees work stoppages and strikes as the first step, and not the last one. They are far more focused on advancing their own political careers than delivering for us.” The challenge focuses upon Jesse Sharkey and Stacey Davis Gates, who Politico describes as “the public faces of the union’s Caucus of Rank and File Educators (CORE).”

Bonus Read: “Virginia's education wars emerge in Florida governor's race,” (Politico).

U.S. Economy

U.S. Manufacturers Down to Five Day Supply of Critical Chips

On Tuesday, the Department of Commerce reported that U.S. manufacturers have only a five day supply of key chips (WSJ, WaPo, NYT). The Washington Post writes, “Manufacturers’ median chip inventory levels have plummeted from about 40 days’ supply in 2019 to less than five days, according to a survey of 150 companies worldwide that the Commerce Department conducted in September.” A department summary of the findings stated, “This means a disruption overseas, which might shut down a semiconductor plant for 2-3 weeks, has the potential to disable a manufacturing facility and furlough workers in the United States if that facility only has 3-5 days of inventory.” The Department identified the pandemic as a major cause of the crisis, and we have covered previous reports of chip shortages tied to the pandemic. The Department contended, “This semiconductor shortage is the result of a significant mismatch in supply and demand, further exacerbated by the pandemic.” Commerce Secretary Gina Raimondo told Congress that this situation leaves automotive manufacturers and others who rely on the chips with “no room for error.” She noted that Covid outbreaks elsewhere have the potential to disrupt U.S. industry due to the lack of room, stating, “A covid outbreak in Malaysia has the potential to shut down a manufacturing facility in America.” The Department has been seeking the passage of the Innovation and Competition Act. The Wall Street Journal writes, “The Senate passed its version of the $250 billion measure to boost high-tech research and manufacturing on a bipartisan vote last year, but the measure hasn’t advanced in the House. It includes $52 billion specifically targeted toward growing domestic chip production.”

Kroger Workers Approve New Contract After Nine Day Strike

On Tuesday, Kroger workers approved a new contract after 8,000 employees at Kroger’s King Sooper grocery stores in Denver spent nine days on strike (WSJ). The Wall Street Journal writes, “The new agreement includes higher wages for King Soopers employees, with some receiving increases of more than $5 per hour, according to United Food and Commercial Workers Local 7, which represents King Soopers workers in Colorado. Unionized workers will also receive better healthcare and pension benefits, the union said.” The union refused to discuss more specifics, as the union will be voting on ratifying the contract later this week. The strike ended on Friday. The new contract and strike came amid a wave of labor activity driven in part by the pandemic. We covered the Kroger strike and other strikes in previous briefs.

GE Sales Fall 3% Amid Supply Chain Issues

On Tuesday, GE reported that its sales fell 3% in the fourth quarter, citing supply chain challenges (WSJ). The Wall Street Journal writes, “The Boston conglomerate reported free cash flow from its industrial operations of $3.8 billion, bringing the full-year total to $5.1 billion, and projected 2022 cash flow of $5.5 billion to $6.5 billion. GE plans to split into three separate public companies over the next two years while it navigates the pandemic’s impact on its aviation business and supply chain problems.” GE also noted that it expects inflation to continue in 2022, and that it is using multiple suppliers to ease supply chain disruptions.

Bonus Read: “Stock Markets Tumble as Turbulence Continues,” (WSJ). 

U.S. Society

SATs to Go Virtual by 2024

On Tuesday, the College Board announced that their premier college admissions standardized test, the SATs, will become fully digital by 2024  (NYT). The SATs have become less important as some colleges and universities move to a “test-optional” application process. The New York Times writes that more  “than 1,800 schools did not require standardized test scores for 2022 admissions, according to the nonprofit organization FairTest. The number of SAT test takers declined from 2.2 million high schoolers who graduated in 2020 to 1.5 million in the class of 2021, according to the College Board. About 1.7 million students in the class of 2022 have taken the test to date.” The pandemic has helped drive a de-emphasis on standardized testing and the adoption of new methods, as it forced testing centers to close and colleges to waive the prerequisite. The SATs have long been debated for their ability to accurately predict academic performance in college. Furthermore, the test has come under criticism for highlighting socioeconomic inequality; access to test preparation courses and tutors is expensive and widely unavailable to those who cannot afford it.

Survey: More Knowledge Workers Prefer Flexible Hours Than Remote Work

The Wall Street Journal reports that a survey conducted by Future Forum, a consortium led by Slack Technologies, found that more workers want flexible hours than want remote work (WSJ). The Journal writes, “Ninety-five percent of people surveyed want flexible hours, compared with 78% of workers who want location flexibility, according to a new report from Future Forum, a consortium focused on reimagining the future of work led by Slack Technologies Inc. The new data, collected in November 2021 from a survey of more than 10,000 knowledge workers, offers a snapshot into just how popular hybrid arrangements have become in the second year of the pandemic.” Notably, among workers unhappy with their flexibility, 72% said they were likely to seek new opportunities in the next year.

Big Winners of the Stay at Home Economy Like Netflix and Peloton Face New Challenges

Companies like Netflix and Peloton are experiencing stock pressure as people return to life in person. The Washington Post reports that “Peloton’s stock fell roughly 25 percent on Thursday as the company pursued an aggressive plan for ‘right-sizing’ its manufacturing operations. Netflix’s stock lost a fifth of its value on Friday after an earnings report revealed its subscriber growth had slowed” (WaPo). In addition, as some project that coronavirus is becoming endemic, not only are companies experiencing slowed consumer consumption, but competitors to big names like Netflix and Peloton are taking over market territory. Nautilus, Lululemon, and Apple were all named as challengers to the fitness icon Peloton.

Inflation Drives Bargain Hunting

When the pandemic hit, Americans spent more on groceries (a consequence of spending less on travel and dining out). Now, however, with high inflation rates, shoppers are looking to save on food. The Wall Street Journal interviewed one New Jersey resident who “noticed higher prices for meat, vegetables and beverages such as orange juice and cranberry juice, and now spends about $200 a trip on groceries for herself and her 12-year-old son, compared with $125 to $150 months ago” (WSJ). Bulk shopping, saving programs, and store-brand groceries are now popular among those looking to cut costs. Supermarkets themselves are also looking for cheaper options to sell to customers and are gathering stock from a wider variety of food suppliers. Overall, inflation has caused heightened awareness of price increases and those who were less conscious of their food bills before have now adopted a heightened awareness of bargains and less costly options.

Bonus Read: “Touring Through Omicron: Broadway Shows Hit Bumps on the Road, (NYT).

Analysis & Arguments

Kurt Andersen writes on anti-vaccine conservatives and sacrifice (Atlantic).

Rachel Strason reports on the stresses health workers face in a Maryland ICU (WaPo).

Michelle Goldberg writes on the meanings of being done with Covid (NYT).

Sophia Gurule and Abdullah Shihipar write on the Biden administration’s immigration detention policy, and the threat Covid poses to those detained (Nation).

 Readers can send in tips, critiques, questions, and suggestions to coronavirusbrief@newamerica.org.

The Brief is edited by David Sterman and Emily Schneider with Senior Editor Peter Bergen.

Read previous briefs here and stream and subscribe to our weekly podcast here.

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