What the $2 trillion economic stimulus package will mean for you
This post was updated on March 27 at 6:20 p.m. Eastern time.
President Donald Trump has signed into law a $2 trillion economic stimulus package — the largest economic rescue measure in history — to help businesses and employees affected by the COVID-19 crisis.
Since the novel coronavirus began spreading across the U.S., businesses across the country have shuttered and laid off workers. For the week of March 21, about 3.3 million had filed unemployment claims — the largest number on record.
Here’s the type of relief that the bill is expected to include:
1) Direct checks: $1,200 will go toward adults and $500 to children based on 2018 tax returns or — if they’ve already filed — 2019 returns.
However, there are stipulations. That $1,200 would go to individuals making up to $75,000, while $2,400 would go to couples who made up to $150,000.
Payments will be reduced for individuals and couples making more than that amount — until they hit a threshold. Financial assistance will not be granted to individuals making more than $99,000 and couples earning more than $198,000.
Senate Minority Leader Chuck Schumer said in a CNN interview that President Donald Trump wants the checks to be sent out starting April 6. However, Douglas Holtz-Eakin, who served on President Bush’s Council of Economic Advisors and is currently president of the American Action Forum, says it will take six weeks at minimum to get a plan like this set up and executed.
2) Expanded unemployment benefits: Workers in most states are currently eligible for up to 26 weeks of benefits — that will now be extended to 39 weeks.
The bill will also give Americans an extra $600 a week, for four months, on top of the maximum unemployment benefits states already dole out.
3) Small business aid: $377 billion, largely in the form of loans, will be set aside.
4) Corporate aid: The Treasury Department will have the authority to provide $500 billion in loans (or other forms of investment) to cities, states, and corporations, including airlines and major manufacturers like Boeing.
That amount had been a major point of contention among Democrats, who had called it a “slush fund” and argued that it would give Treasury Secretary Steven Mnuchin the ability to help industries without transparency.
However, a special oversight committee will now be implemented. According to the Project on Government Oversight, it will collect and publish quarterly reports from recipients of the stimulus funds, and have a special inspector general.
The bill also bans companies from stock buybacks for a year after their loans are paid back.
5) Health care assistance: $150 billion will go to hospitals and other medical facilities. Some of this amount will be dedicated to testing supplies; new construction to house patients; and emergency operation centers.
COVID-19 Economy FAQs
Which businesses are allowed to reopen right now? And which businesses are actually doing so?
As a patchwork of states start to reopen, businesses that fall into a gray area are wondering when they can reopen. In many places, salons are still shuttered. Bars are mostly closed, too, although restaurants may be allowed to ramp up, depending on the state. “It’s kind of all over the place,” said Elizabeth Milito of the National Federation of Independent Business.
Will you be able to go on vacation this summer?
There’s no chance that this summer will be a normal season for vacations either in the U.S. or internationally. But that doesn’t mean a trip will be impossible. People will just have to be smart about it. That could mean vacations closer to home, especially with gas prices so low. Air travel will be possible this summer, even if it is a very different experience than usual.
When does the expanded COVID-19 unemployment insurance run out?
The CARES Act, passed by Congress and signed by President Donald Trump in March, authorized extra unemployment payments, increasing the amount of money, and broadening who qualifies. The increased unemployment benefits have an expiration date — an extra $600 per week the act authorized ends on July 31.
You can find answers to more questions here.
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