The $2 trillion dollar rescue package approved by the house of representatives this Friday, March 27, marked a new record in American history. This was the most significant rescue package ever for mainstream America and corporate America. To put it into perspective, it is more than twice the size of the rescue package after the financial crisis of 2008. What this package will do is work as a bridge to cross America through this terrible crisis due to the Coronavirus.
If you are asking yourself how this package will benefit me, my family, and my country, you came to the right place. Here is step by step as to how this rescue package may just rescue us all.
MONEY DIRECTLY TO AMERICANS
Average 1 American: $1,200
Average American Couple: $2,400 (+$500 more for each child under 17 years old)
( Reduced payment for individuals with an adjusted annual income over $75,000)
( No payment for individuals with an adjusted annual income over $99,000)
IF UNEMPLOYED
$600 dollars per week for 4 months for unemployment + whatever state benefit is ($200 to $550 average depending on which state)
Self-employed workers (GIG economy) are included.
Estimated cost: $260 billion
STUDENT LOANS SUSPEND PAYMENT
Students will not have to pay their loans up to September 30. Payments are being suspended without penalty and accumulating interest for at least 60 days.
WHEN WILL WE GET THE MONEY?
The goal is for the money to be released by April 6, although experts do say that it is probably going to take a little longer.
UNEMPLOYMENT EXTENDED BENEFITS
3 more weeks of extended benefits, fully covered by the Federal Government.
Currently, state unemployment checks last up to 12 - 28 weeks depending on the state
Now, there will be a total of 15 - 32 weeks of unemployment checks (Depending on the state)
NEW PANDEMIC UNEMPLOYED ASSISTANCE PROGRAM
Provide benefits for those fully unemployed, partially unemployed, or that for some reason are unable to work due to the contagion, and thus do not qualify for the traditional benefits.
Included Independent contractors, self employed, and gig economy workers.
Benefits would mirror the benefits available in the individual's state.
$500 BILLION LOANS
$500 billion in loans, investments, and loan guarantees is the amount the Treasury Department can provide.
$25 Billion for passenger air carriers.
$4 Billion for cargo air carriers.
$17 Billion for national security businesses.
$454 Billion for businesses, states, and municipality loans.
Business who receive the loan;
May not issue dividends for up to 1 year after the loan is no longer outstanding.
Must make sure it keeps 90% of employment levels as of March 24 through September 30.
Loans cannot surpass for 5 years.
DIRECT LOANS TO MID-SIZED BUSINESSES
Between 500 and 10,000 employees
Non-profit organizations included
No payment due after the first 6 months after the loan is issued
TRUMP WILL NOT GET MONEY
The legislation prohibits federally elected representative from collecting loans from the $500 billion dollar fund
Businesses that are wholly owned or partly owned by a federally elected representative will be barred from getting the loan.
This applies to anyone with a 20% or more significant stake in a business.
TRUMP'S WALL WILL GET NO MONEY
$1.2 billion for the Coronavirus National Guard's response.
Currently, about 10,000 National Guard members have been activated.
Additional $1 billion will be available for the Defense Purchases Act purchases.
AIRLINES GOT WHAT THEY WANTED
$32 billion in total grants for wages and benefits to the decimated airline industry.
$25 billion for passenger airlines
$4 billion for cargo airlines
$3 billion for industry contractors. For example, people who handle catering, baggage, ticketing, and aircraft cleaning.
In addition;
Another $25 billion for passenger airlines
$4 billion for cargo airlines
(Will be available as loans)
Companies that receive the assistance are barred until September from making;
Furloughs
pay cuts
stock buybacks
issuing dividends to investors
It also institutes limits on executive compensation
Airlines are required to;
Operate routes that in normal conditions wouldn't be as attractive to them due to low passenger traffic.
HOSPITALS WILL GET BILLIONS OF DOLLARS
$100 billion for hospitals and other elements of the healthcare system
$16 billion for ventilators, masks, and other medical supplies
$11 billion for vaccines and other medical preparedness
$4.3 billion for the U.S. Centers for Disease Control and Prevention
$65 billion designated to go to hospitals, with the rest funneled to doctors, nurses, suppliers, and others, the association said.
The legislation;
Will reimburse up to 20% for treating Medicare patients with Coronavirus.
Will eliminates $8 billion in scheduled payment reductions (Interests or mortgage loans) to hospitals caring for large numbers of uninsured and Medicaid patients.
Will temporarily remove a 2% cut for treating Medicare patients.
INDEPENDENT CONTRACTORS AND GIG WORKERS
Will be eligible to receive federal aid.
This will provide tranquility to millions of part-time workers who deliver for Amazon or drive for Uber, in what has become a significant part of the digital economy.
FORECLOSURE AND EVICTIONS PROTECTION
There will be housing protections against foreclosures on mortgages and evictions for renters.
Americans that are facing financial hardship due to the Coronavirus will be given a temporary postponement of mortgage payments up to 60 days on a federally backed mortgage loan. This can be extended for 4 periods of 30 days each.
As a result of delay payments, the bill does not allow fees, penalties, or additional interest to be charged. It also includes similar protections for those with multifamily federal mortgage loans, allowing them to receive a 30-day temporary postponement of mortgage payments and up to two 30-day extensions.
Those with federally backed mortgage loans who host tenants would also be forbidden to evict the tenants due to the failure of rent payment for a period of 120-days. They also may not charge fees or penalties to those tenants that fail to pay their rent.
$25 MILLION TO BE GIVEN FOR THE KENNEDY CENTER
$25 million should be given to support the John F. Kennedy Center for the Performing Arts in Washington, DC.
A Democratic aide who is familiar with the negotiations said that the funding has bipartisan support.
"This is a federal agency that is funded by a mixture of appropriations and ticket revenues. They've had to cancel all their performances, so they have no revenue and have already laid off nearly 800 people. If they don't get a cash infusion, they will become insolvent and could be unable to reopen," said the aide.
$75 million will be given for the National Endowment for the Arts
This is a federal program that Trump has tried to cut from his budget proposals ever since he got into office and that in a Republican-led Congress already has seen its budget dwindle by several million dollars.
MORE FUNDING FOR FOOD ASSISTANCE
$450 million shall be given for The Emergency Food Assistance Program, which is responsible for supplying food banks, which are expecting to see more clients as job losses increase.
$350 million would buy additional food.
$100 million would be used for distribution.
$200 million to be used for food assistance for Puerto Rico and other US territories.
$100 million to be used for food distribution on American Indian reservations.
The bill will not expand eligibility or benefits for the Supplemental Nutrition Assistance Program (food stamps) and Child Nutrition Program.
EVACUATIONS OF AMERICANS
$324 million for the State Department, which will also be used specifically for evacuation expenses.
The bill does not clarify who would be evacuated if it will be US diplomats or American citizens who are living overseas, or both.
According to a senior State Department official, 9,300 Americans had already been brought back home. Another senior State Department official informed that the government was tracking 13,500 Americans also seeking assistance abroad.
PEACE CORPS, DIPLOMATIC PROGRAMS, AND REFUGEES
$88 million for the Peace Corps. (independent agency from the US government that sends American volunteers abroad)
Last week the organization suspended all of its operations and evacuated all of its volunteers. The organization director said operations would return to normal "when conditions permit."
Additional $324 million for diplomatic programs
$258 million for international disaster assistance
$350 million for migration and refugee assistance
$95 million to be used for USAID operating expenses.
The bill also authorizes the government agencies to administer oaths of office remotely. (must submit a report to the relevant committees "describing the process and procedures for administering such oaths, including appropriate verification.")
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Sources
Sullivan, Andy. “Factbox: What's in the $2.2 Trillion Senate Coronavirus Rescue Package.” Edited by Scott Malone et al., Reuters, Thomson Reuters, 26 Mar. 2020, www.reuters.com/article/us-health-coronavirus-usa-bill-contents/factbox-whats-in-the-22-trillion-senate-coronavirus-rescue-package-idUSKBN21D2CQ.
Staff, CNN. “What's in the $2 Trillion Coronavirus Stimulus Bill.” CNN, Cable News Network, 26 Mar. 2020, www.cnn.com/2020/03/25/politics/stimulus-package-details-coronavirus/index.html.