After days of negotiations, the Senate and White House signed a historic $2 trillion stimulus plan to help mitigate the economic fallout of COVID-19.
Here’s all you need to know about The Coronavirus Aid, Relief and Economic Security Act (CARES.)
Stimulus checks
One of the most crucial elements of the bill is the plan to distribute stimulus checks to Americans in the middle class and lower income levels. Officials hoped to deposit the one-time payments as soon as early April, though you likely won’t see the funds until a few weeks later.
Aid amounts will be based on household income reported in 2018 taxes (or 2019 taxes if they’ve already been filed) and will average $1,200 for each adult earning up to $75K a year and married couples earning up to $150K a year. Each household will also receive an additional $500 for every child under the age of 17.
Increased unemployment benefits
The enhanced unemployment insurance includes four months of full paid leave for laid-off workers; expanded coverage for employees who were furloughed; inclusion of workers who generally do not qualify for unemployment, like gig workers and freelancers; and increased unemployment benefits for all eligible workers by $600 a week for four months.
Funding for the health care system
The stimulus plan will pump $150 billion in the country’s overtaxed health care system to help it meet the overwhelming demands of the pandemic. Of this funding, $130 billion will go directly to hospitals struggling to deal with a shortage of masks, ventilators, beds and protective gear; and $1 billion will go to the Indian Health Service. The rest of the money will be used to fund research and treatment and to help the Strategic National Stockpile raise medical supplies and equipment.
Small business bailouts
The stimulus plan will offer $350 billion worth of funds to small businesses to help them remain solvent during the pandemic. These funds take the form of loans, some of which may ultimately be forgiven.
Additional provisions and addenda
There are several other components of the CARES Act, including the following:
- Distribution of $150 billion directly to state and local governments to enable them to address their spending shortages and fund their increased labor
- Establishment of a Treasury Department special inspector general for pandemic recovery and a Pandemic Response Accountability Committee to oversee loans to businesses
- Prohibition for all businesses controlled by the president, vice president, members of Congress and heads of executive departments from participating in the loan or investment programs
- Provisions to ban stock buybacks during the period of government assistance
- Establishment of worker protections for businesses receiving the federal loans
- Prohibition keeping airlines from using the federal loans for CEO bonuses