Congress passed a massive coronavirus relief package earlier this week, finally injecting more stimulus funds back into the pandemic-impacted economy roughly ten months after the passage of the $2.2 trillion CARES Act.
Both chambers swiftly approved the $900 billion, nearly 5,600 page bill alongside a more than $1.4 trillion measure that would fund the government through Sept. 30, 2021. The House voted to pass the package at a margin of 359-53 votes, while the Senate approved the bill at a margin of 92-6 votes; both chambers only had a few hours to review the bill before voting.
The new stimulus package extends many of the programs passed in the CARES Act, and modifies and adds other programs that are aimed to stimulate the economy on a longer-term basis.
Key Elements
The most anticipated feature of the package was another round of stimulus checks sent out to those impacted the most by the pandemic-induced recession. The new relief package calls for a second check, but the amount given has been slashed in half compared to the first round and has given tighter parameters on those who qualify.
This new round offers $600 to individual adults with adjusted gross income of up to $75,000 annually based on 2019 earnings. A couple making up to $150,000 and heads of households earnings up to $112,500 would qualify for $1,200 in total. Eligible families with dependents under the age of 17 will receive an additional $600 per child.
The package also extends enhanced federal unemployment benefits to the millions of Americans still qualifying for the CARES Act program through March 14, 2021. The maximum amount offered is capped at $300 per week, which is half the amount allotted in the first package. The package also extends the assistance program created for freelancers and independent contractors to $100 per week throughout the same period with proof of unemployment.
The second stimulus bill also set aside $285 billion for another round of Paycheck Protections Program loans for small businesses, this time with stricter qualification requirements to account for the various loans given to sports teams and public companies in the first round. The bill also allows for $15 billion to support entertainment-related businesses, which has been one of the hardest hit industries amid the persistent nationwide outbreak.
The bill also provides $70 billion for broad health measures including funding to assist federal, state and local government vaccine campaigns, provisions to assist statewide testing and contact tracing efforts, and money for ongoing coronavirus research. Additionally, the bill effectively bans surprise medical bills, which are charged to patients long after hospital procedures, starting in 2022. The law will require medical providers to only change a patient what the individual would usually pay for in-network deductible and copayments under their insurance.
The package also provides funding for rental and food assistance of the hardest hit Americans, effectively extending the moratorium on evictions through Jan. 31, 2021 and additional stimulus to food assistance programs.
Two unexpected additions to the bill include funding for climate change initiatives, like $35 billion to fund clean energy projects, with the goal of creating future jobs and broad funding for internet infrastructures, thus expanding the nation's access to high-speed internet through multiple programs and $1 billion in grant funding.
Why is it controversial?
This package was passed very quickly as Congress needed to pass funding to prevent a government shutdown. The speed at which it was voted into approval by both chambers allowed for additional provisions, called riders, that have little to no connection to coronavirus stimulus.
Critics of the bill say that it does not provide enough assistance to individuals, with some legislators--including President Donald Trump--calling for hard-hit Americans to receive $2,000 stimulus checks include of $600.
On Tuesday, Trump addressed the nation in a video statement posted on Twitter
Trump is expected to make a decision on whether or not to sign the bill into law in the coming days. However, the stimulus and government funding package was passed through both houses with veto-proof majorities, meaning the funding is expected to take effect just before the end of the year.
