Coronavirus Stimulus Bill. What Does it Mean?
As the Coronavirus pandemic worsens, congressional leadership is racing to complete a $2 trillion support package. While both sides of the aisle are defining specific rhetoric, general characteristics of the plan are nearing approval. Overall, the stimulus package aims to support a battered economy and provide mechanisms for the implementation of a nationwide health response. See our summary of key Bill line items.
The Bill
The Coronavirus Aid, Relief, and Economic Security Act or the CARES Act is meant to specifically address the economic and social impacts of the COVID-19 (coronavirus) outbreak.
Key components include:
Small Businesses:
emergency loans to distressed businesses
establishes, and provides funding, for forgivable bridge loans
provides additional funding for grants and technical assistance
Small businesses are some of the hardest hit by the unforeseen consequences of the pandemic. Across industries, damages to revenue are testing profitability and liquid asset reserves. The Bill seeks to address businesses’ hardships though how loans will be allocated and repaid is to be determined.
Individuals:
provides funding for $1,200 tax rebates to individuals, with additional $500 payments per qualifying child. Rebate begins phasing out when incomes exceed $75,000 (or $150,000 for joint filers)
With consumer behavior directly impacted by the pandemic, an infusion of cash aims to increase spending while bolstering the economy and providing support for those hardest hit.
Employers:
establishes limits on requirements for employers to provide paid leave
With covid-19 cases expected to impact large parts of the US population, the government aims to streamline paid leave requirements for large employers.
Taxes
establishes special rules for certain tax-favored withdrawals from retirement plans
delays due dates for employer payroll taxes and estimated tax payments for corporations
revises other provisions, including those related to losses, charitable deductions, and business interest.
Health Care:
provides additional funding for the prevention, diagnosis, and treatment of COVID-19
limits liability for volunteer health care professionals
prioritizes Food and Drug Administration (FDA) review of certain drugs
allows emergency use of certain diagnostic tests that are not approved by the FDA
expands health-insurance coverage for diagnostic testing and requires coverage for preventative services and vaccines
revises other provisions, including those regarding the medical supply chain, the national stockpile, the health care workforce, the Healthy Start program, tele-health services, nutrition services, Medicare, and Medicaid
Education:
temporary payment suspension for federal student loans.
revises provisions related to campus-based aid, supplemental educational-opportunity grants, federal work-study, subsidized loans, Pell grants, and foreign institutions.
The bill also authorizes the Department of the Treasury to temporarily guarantee money-market funds.
(Materials of Bill S.3548 are exhibited as of 3/24/2020 and are subject to change. More info)