APRIL 2020 • LONGISLANDPRESS.COM 7
$2.3T CORONAVIRUS RESCUE PACKAGE WHAT TO EXPECT
(Reuters) - U.S. President
Donald Trump signed the
largest federal stimulus
package in history into law
on March 27 to help cope
with the economic downturn
inflicted by the coronavirus
pandemic and shore
up medical providers on the
front lines of the outbreak.
Here are major elements of
the plan, which is estimated
to cost roughly $2.3 trillion.
Cost estimates are provided
by congressional committees
and the Committee for a
Responsible Federal Budget,
a nonpartisan policy group.
DIRECT PAYMENTS
TO AMERICANS
Direct payments of up to $1,200 each to
millions of Americans, with additional
payments of $500 per child. Payments
would be phased out for those earning
more than $75,000 a year. Those earning
more than $99,000 would not be eligible.
Estimated cost: $292 billion
ENHANCED UNEMPLOYMENT AID
Payments for jobless workers would
increase by $600 per week. Laid-off
workers would get those payments for
up to four months. Regular benefits,
which typically run out after six months
in most states, would be extended for an
additional 13 weeks.
Self-employed workers, independent
contractors and those who typically
don’t qualify for unemployment benefits
would be eligible. The government would
also partially make up wages for workers
whose hours are scaled back, in an effort
to encourage employers to avoid layoffs.
Estimated cost: $260 billion
SMALL BUSINESS LOANS AND
GRANTS
Loans for businesses that have fewer
than 500 employees could be partially
forgiven if they are used for employee
salaries, rent, mortgage interest and utility
costs. The bill also includes emergency
grants for small business.
Estimated cost: $377 billion.
AID TO AIRLINES, LARGE
BUSINESSES
The bill sets up a fund to support a new
Federal Reserve program that offers up
to $4.5 trillion in loans to businesses,
states and cities that can’t get financing
through other means.
Companies tapping the fund would not
be able to engage in stock buybacks
and would have to retain at least 90%
of their employees through the end
of September. They would not be able
to boost executive pay by more than
$425,000 annually, and those earning
more than $3 million a year would see
their salaries reduced.
The fund would be overseen by an
inspector general and a congressional
oversight board. The Treasury secretary
would have to disclose transactions.
Businesses owned by President Donald
Trump, other administration officials
or Congress members, or their family
members, would not be eligible for
assistance.
Loans are set aside for airlines, air
cargo carriers, airline contractors and
“businesses important to maintaining
national security,” widely understood
to be Boeing Co.
Total cost: $500 billion
GRANTS FOR AIRLINES
Airlines, air cargo carries and
airline contractors also could get
grants to cover payroll costs. They
would have to maintain service
and staffing levels, and would not
be able to buy back stock or pay dividends.
The U.S. government could
get stock or other equity in return.
Executive pay above $425,000 a
year would be frozen for two years,
and those who earn more than $3
million annually would see their
salaries reduced.
Total cost: $32 billion
HOSPITALS AND PUBLIC
HEALTH
- $100 billion for hospitals and other
elements of the healthcare system
- $16 billion for ventilators, masks and
other medical supplies
- $11 billion for vaccines and other medical
preparedness
- $10 billion for the U.S. Centers for Disease
Control and Prevention (CDC), the
Food and Drug Administration (FDA)
and other health agencies
- $20 billion for veterans and military
health systems
- $20 billion for the Medicare health
program for seniors
STATES, EDUCATION,
TRANSPORTATION
- $150 billion for state, local and Native
American tribal governments
- $45 billion in disaster relief
- $32 billion for education
- $25 billion for mass-transit systems
- $10 billion in borrowing authority for
the U.S. Postal Service
- $1 billion for the Amtrak passenger rail
service
- $10 billion for airports
- $4 billion to suspend airline ticket, cargo
and fuel taxes
TAX CUTS
- A refundable 50 percent payroll tax credit
for businesses affected by the coronavirus,
to encourage employee retention. Employers
would also be able to defer payment of
those taxes if necessary. Cost: $67 billion
- Loosened tax deductions for interest
and operating losses. Cost: $210 billion
- Loosened rules for retirement funds, allowing
people to withdraw money early
or postpone withdrawals from accounts
such as Individual Retirement Accounts
(IRAs) that have been hurt by turbulence
in financial markets. Cost: $8 billion
- Allows people to use tax-advantaged
savings accounts to buy menstrual medical
products. Cost: $9 billion
- Tax write-offs to encourage charitable
deductions and encourage employers to
help pay off student loans. Cost: $3 billion
- Waive tax on distilled spirits used to
make hand sanitizer
INCREASED SAFETY NET
SPENDING
- $25 billion more for food stamps and
child nutrition
- $12 billion more for housing programs
- $5 billion more for child and family
services
OTHER ELEMENTS
- Temporary ban on foreclosures and
evictions for people who rely on federal
housing and mortgage programs
- Defer payments and interest on federal
student loans
(Reporting by Andy Sullivan; Editing by
Scott Malone, Peter Cooney, Steve Orlofsky,
Jonathan Oatis and Sonya Hepinstall)
IN THE NEWS
REUTERS/Dado Ruvic/Illustration/File Photo
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