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After much anticipation, Congress is on the verge of passing a second COVID relief package worth over $900 billion. This bill also includes the unexpected provision of $600 direct payments to eligible individuals. In addition, it extends unemployment benefits and a moratorium on evictions that was set to expire by year’s end. Below are the full details of what you can expect.
What’s inside the relief bill?
The relief package has been delayed for quite a while, with negotiations dragging on as lawmakers clashed over issues like COVID-related liability protection for businesses, opposed by Democrats, and additional state and local funding, opposed by Republicans.
These disputed measures were separated into a different bill, which lawmakers have postponed until January. At that time, President-elect Joe Biden is expected to introduce additional relief legislation. In a statement, Biden described the $900 billion proposal as 'just the beginning.' With those issues resolved, the relief package is likely to pass in the coming days. While the full text of the bill is not yet available, the package is anticipated to include:
Stimulus payments
The bill will provide direct stimulus payments of $600 per individual, along with an additional $600 for each dependent. This is less than the earlier $1,200 and $500 payments in the CARES Act. These payments will be based on 2019 gross income, with a reduction if an individual's income exceeds $75,000, and no payment for those earning over $87,000 (individuals making $87,000 or more will not receive funds), according to the Wall Street Journal. For married couples filing jointly, payments will be reduced at $150,000 and eliminated for those earning over $174,000.
Extended unemployment benefits
Workers who are unemployed will be eligible for a federal unemployment subsidy of $300 per week, which will be available until March 14.
The plan also extends the Pandemic Unemployment Assistance (PUA) and Pandemic Emergency Unemployment Compensation (PEUC) programs until mid-March, allowing individuals to access up to 50 weeks of unemployment benefits. These programs broaden the eligibility for jobless benefits, including gig workers and freelancers, and apply to individuals who have used up their state unemployment benefits.
According to CNBC, certain self-employed, gig, and freelance workers who earn both regular wages and self-employment income will qualify for an additional $100 a week to make up for discrepancies in how states calculate unemployment benefits.
Rental assistance and eviction moratorium extension
The bill extends the current eviction moratorium through January 31, and President Joe Biden is expected to advocate for further extensions after he takes office. The package also includes $25 billion in rental assistance for those who have lost employment due to the pandemic.
Small business loans
The first and second forgivable Paycheck Protection Program (PPP) loans, totaling over $284 billion, now include expanded eligibility to encompass nonprofits, as well as local newspapers, TV, and radio broadcasters. Additionally, $15 billion has been allocated to support live venues, independent movie theaters, and other cultural institutions. The new legislation also streamlines the forgiveness process for businesses that receive PPP loans of less than $150,000.
Nutrition assistance
A total of over $13 billion will be allocated for food assistance. The Supplemental Nutrition Assistance Program (SNAP) will boost benefits by 15% for six months, with expanded eligibility for college students. Furthermore, unemployment benefits will not be considered as income when determining eligibility for SNAP, as reported by CNBC.
The legislation also increases food access for children, ensuring that all children under six years old qualify for child care and benefits under the Pandemic EBT (P-EBT) program. Moreover, food banks will receive $400 million through the Emergency Food Assistance Program (TEFAP), and programs like Meals on Wheels and WIC will benefit from $175 million in funding.
Healthcare funding
The bill allocates $9 billion to support healthcare providers and $4.5 billion for mental health initiatives, with an additional $1 billion set aside for COVID-19 research, according to the Wall Street Journal.
Additionally, the bill puts an end to the practice of surprise medical billing.
School funding
States are receiving indirect relief for education expenses, with the bill designating $82 billion for K-12 public and private schools, as well as colleges. The majority of this funding, $54.3 billion, will be directed to public schools, while $22.7 billion will support both public and private higher education.
Vaccine distribution funding
Approximately $20 billion in funding will be allocated to states and federal agencies for the distribution of vaccines. According to the Wall Street Journal, nearly $9 billion will be directed to the Centers for Disease Control and Prevention (CDC) and individual states to assist in vaccine distribution, while $3 billion will be allocated to establish a national vaccine stockpile.
