What's Inside The Historic $2 Trillion Stimulus Bill
Congressional lawmakers voted to pass an historic $2 trillion stimulus bill in an effort to kickstart a sagging economy impacted by the coronavirus pandemic. This new legislation includes cash and assistance for individuals, businesses small and large, and particularly hard-hit industries such as air travel and manufacturing.
Below is a breakdown of the of some of the key provisions of the new bill.
The new stimulus bill authorizes direct payments of up to $1,200 for single Americans, $2,400 for married couples, and parents would see $500 for each child under the age of 17.
These payments would begin to phase out for individuals making more than $75,000 annually and those making more than $99,000 would not qualify at all. These base thresholds are doubled for couples.
Expanded Unemployment Benefits
Jobless workers will see a massive boost to their benefits including an extra $600 a week for up to four months on top of their state benefits. In addition, laid off workers will receive their full pay for that same four-month period.
Unemployment eligibility also will be extended to independent contractors and the self-employed, including gig economy workers, who in most cases typically wouldn’t qualify but can’t work because of the virus’ spread.
Small & Large Business Loans
Small businesses will have access to $350 billion in forgivable loans, but must they meet certain requirements such as not laying off employees. The loans will range up to $10 million depending on the business’ payroll. Companies will also receive a 50% refundable payroll tax credit on worker wages to further incentivize retaining employees.
The US Treasury Department has been allocated $500 billion to use in loans, loan guarantees and investments for larger industries. The bill includes clear restrictions on businesses who apply, including maintaining 90% of employment levels as of March 24 through September. An oversight committee will be created to supervise all loans to large companies.
Suspended Student Loan Payments
All payments on federally backed student loans will be suspended through the month of September under the authority of the Department of Education. All suspended payments will be without penalty and won’t accrue interest for at least 60 days.
Support For Airline Industry
The stimulus package includes $32 billion in grants for wages and benefits for the hard-hit airline industry. Passenger airlines will receive the lions share with $25 billion. Carriers will get $4 billion and aviation contractors will get $3 billion.
In addition another $25 billion for airlines and $4 billion for carriers will be made available as loans. Any company who receives assistance will be prohibited from making furloughs, pay cuts or stock buybacks through September.
Protections From Eviction & Foreclosure
Homeowners and renters will be offered protections against foreclosures and evictions. Anyone facing financial hardships will be eligible for a federally backed mortgage loan of up to 60 days, which can be extended, and prevents fees and additional interest from accruing.
Tenants in buildings with federally backed loans or in housing programs will be protected from eviction proceedings due solely to failure of to pay rent for a four-month period. The will also be exempt from being assessed any late fees for failure to pay rent.
The taxed healthcare system will also get some assistance with roughly $130 billion earmarked for hospitals, including $100 billion to reimburse providers for expenses and lost revenues attributed to the coronavirus outbreak.