The historic stimulus package is said to be the largest relief package in modern American history, according to Fox News.
Larry Kudlow said, “This legislation is urgently needed to bolster the economy, provide cash injections and liquidity and stabilize financial markets to get us through a difficult period, a difficult and challenging period in the economy facing us right now but also to position us for what I think can be an economic rebound later this year.”
“Phase two delivered the sick leave for individuals, hourly workers, families and so forth,” Kudlow continued.
“Phase three, a significant package for small businesses, loan guarantees will be included. We’re going to take out expenses and lost revenues.”
Kudlow conluded, “The total package here comes to roughly $6 trillion: $2 trillion direct assistance, roughly $4 trillion in federal reserve lending power.”
“Again, it will be the largest main street financial package in the history of the United States.”
According to Fox News, furloughed workers would get whatever amount a state usually provides for unemployment, plus a $600 per week add-on. This will include “gig workers” like Uber drivers, which covers them for the first time.
“The package also would give one-time payments of $1,200 per adult and $500 per child directly to the public,” Fox News adds.
However, there are income limits. The LA Times reported, “The amounts of the one-time payments, which officials hope could go out to Americans as soon as early April, will be based on income reported in 2018 taxes, declining gradually beginning with individuals who made $75,000 or married couples filed jointly who made $150,000.”
“Individuals making $99,000 or above or married couples making $198,000 or more would receive no check. People would also receive an additional $500 per child,” the LA Times added.
Although 2019 tax returns would be used to determine income (or 2018 tax returns if those are the most recent available), experts said it was likely the bill would contain provisions for those who do not file returns.
The massive economic relief package would provide a $367 billion program for small businesses to keep making payroll while workers are forced to stay home. One of the last issues to close concerned $500 billion for guaranteed, subsidized loans to larger industries, including a fight over how generous to be with the airlines, given that Democrats wanted them to abide by new carbon emissions restrictions.
Republicans also won inclusion of an “employee retention” tax credit that’s estimated to provide $50 billion to companies that retain employees on payroll and cover 50 percent of workers’ paychecks. Companies would also be able to defer payment of the 6.2 percent Social Security payroll tax.
At last, we have a deal.
After days of intense discussions, the Senate has reached a bipartisan agreement on a historic relief package for this pandemic.
We’re going to pass this legislation later today.
— Leader McConnell (@senatemajldr) March 25, 2020
Other provisions will reportedly include $100 billion for direct aid to health care institutions who are battling the crisis. This breaks down to more than $4 billion to health agencies and $45 billion for FEMA’s Disaster Relief Fund and millions more for FEMA grants.
It also includes $200 million to help nursing homes cope with the challenge as well as $400 million in election assistance to help states expand early voting and vote-by-mail options.