A deal has been brokered on an estimated $900 billion stimulus relief package on Sunday night. This new bill will provide aid to struggling households, small businesses, aid for child care, schools, and help cover for vaccine distribution. Not only this, but appoximately $429 billion will go toward the unused money that was provided by the CARES Act for emergency lending programs run by the Federal Reserve.
The COVID-19 pandemic is causing much distress in the medical field as cases continue to rise. Many Americans were set to lose their federal aid by the end of 2020, so the timing of this completed deal comes at an important juncture. Here are the stipulations of stimulus checks, as well as unemployment benefits, small business relief, and much more! Please check out the articles listed below for a more in-depth look into what pertains to this new bill.
$600 stimulus checks per person, including adults and children. An example of this is that a family of four would receive $2,400, up to a certain income threshold of course.
Payment size decreases for people who have earned more than $75,000 in the 2019 tax year. No check will be issued for those who have earned more than $99,000.
Unemployment benefits extended up to $300 per week. The benefit could kick in as early as Dec. 27 and run at least through March 14.
Unemployment benefits program for contract and gig workers, which is set to expire at the end of the year, would be extended as well.
Small Business Relief
This new bill includes more than $284 billion for first and second forgivable Paycheck Protection Program loans, expanded PPP eligibility for nonprofit organizations and news outlets, and modifications to the program to serve small businesses, nonprofits and independent restaurants.
The language of the bill ensures that churches and faith-based organizations are eligible for PPP loans, according to a summary circulated Sunday night by the office of House Republican Whip Steve Scalise (R-La.).
The businesses that received PPP loans and had them forgiven will be allowed to deduct the costs covered by those loans on their federal tax returns. While the issue had been a point of contention, Sen. John Thune (R-S.D.) said the costs would be deductible under the final agreement.
The package provides $15 billion for independent movie theaters and cultural institutions.
The deal includes $20 billion for targeted grants through the Economic Injury Disaster Loans program.
The package also includes a tax break for corporate meal expenses urged by the White House and denounced by Democrats. Dubbed the “three-martini lunch” tax deduction by opponents, the tax break was promoted by Trump as a way to revive the restaurant industry.
Lawmakers said they reserved some of the PPP funds for “very small” businesses, as well as lending through community-based lenders and minority depository institutions.
Money for vaccine distribution
This bill includes $20 billion for the purchase of vaccines “that will make the vaccine available at no charge for anyone who needs it,” according to a summary circulated by Scalise’s office. It also provides $8 billion for vaccine distribution and includes $20 billion to assist states with testing.
In a statement late Sunday, House Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Charles E. Schumer (D-N.Y.) said billions were “reserved specifically for combating the disparities facing communities of color, and to support our heroic health care workers and providers.”
Stein, J., & Siegel, R. (2020, December 21). Here's what's in the new $900 billion stimulus package. Retrieved December 21, 2020, from https://www.washingtonpost.com/business/2020/12/20/stimulus-package-details/