Shortly after midnight this morning, The White House and Senate Leaders were able to come to an agreement in principle with terms on a historic $2 trillion relief package to combat the economic impact of the COVID-19 pandemic.
Marking the largest financial rescue package in American history, this legislation (still pending) is set to cover an array of programs including direct payments to families, a heavy expansion of unemployment insurance, aid to large, medium and small businesses, and an aggressive influx of new funding for health care organizations, among others. While timing of the package is fluid and its proposed elements could be subject to change, here are a few things you and your family and/or business should know about the pending coronavirus economic rescue package.
1. Direct Aid to American Families
The pending legislation seeks to provide direct checks to Americans within the middle class and lower income levels. The likely bill calls for financial assistance in the amount of $1,200 per adult, among other payments.
2. Support for Small Businesses
Small businesses impacted by the coronavirus will likely receive $350 billion in the form of loans. Some of these could ultimately be forgiven.
3. Expansion of Unemployment Insurance
Being dubbed as “unemployment insurance on steroids”, workers laid-off as a result of COVID-19 will likely benefit from an extended unemployment insurance program allowing for four months of “full pay”, up from the three-month period for most. The plan may permit to raise the maximum unemployment insurance benefit by $600. It is proposed that these benefits will apply to traditional workers for both small and large companies as well as those who are self-employed and “gig” workers.
4. New Funding into the Health Care System
It is proposed that more than $150 billion in new funding will filter to hospitals, research and treatment facilities, as well as the Strategic National Stockpile to raise much needed supplies of ventilators, masks, and other medical supply necessities and equipment.
5. State and Local Government Support
It is proposed that State and local governments will receive $150 billion to help address revenue shortages.
A vote on the bill is expected later this week as leaders are still negotiating details on substance, timing and implementation.