Legislation

Historic Coronavirus Relief Package

25th March / 2020
Historic Coronavirus Relief Package

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.

Important Disclosure:

Advisory services provided by TFO Phoenix, Inc. Information was obtained and collected from a variety of public resources. We believe this information provided here is reliable, but do not warrant its accuracy or completeness. It is provided for informational purposes only, and should not be construed as legal or tax advice, and should not be considered an individualized recommendation or personalized investment advice. Laws may change pursuant to the administration’s legislative agenda. Always consult an attorney or tax professional regarding your specific legal or tax situation. TFO Phoenix, Inc. is not engaged in the practice of law.