WASHINGTON (AP) – The Major Pandemic Relief Package pending the signature of President Joe Biden aims to help the US defeat the virus and restore the economy to health. Highlights of the legislation:
HELP TO THE UNEMPLOYED
The federal government’s comprehensive unemployment benefits would be extended through September 6 at $ 300 a week. That’s on top of what the beneficiaries get through their state unemployment insurance program. The first $ 10,200 in unemployment benefits accrued in 2020 would be non-taxable for households with incomes less than $ 150,000.
In addition, the measure provides for a 100% subsidy of COBRA health insurance premiums to ensure that laid-off workers can continue to participate in their employer’s health plans free of charge until the end of September.
MORE CHECKS
The law provides for a direct payment of $ 1,400 for a single taxpayer, or $ 2,800 for a married couple filing jointly, plus $ 1,400 per dependent. Individuals who earn up to $ 75,000 will receive the full amount, as will married couples with incomes of up to $ 150,000.
The size of the check would get smaller for those earning a little more, with a hard cut-off of $ 80,000 for individuals and $ 160,000 for married couples.
Most Americans get the full amount. The median household income was $ 68,703 in 2019, according to the US Census Bureau. Biden said payments would begin this month.
MONEY FOR STATE AND LOCAL GOVERNMENTS
The legislation would send $ 350 billion to state and local governments and tribal governments for costs incurred through the end of 2024. The bill also requires small states to receive at least the amount they received under virus laws passed by Congress last March.
Many communities took blows to their tax bases during the pandemic, but the impact varies from state to state and city to city. Critics say the funding is misguided and far more than it needs to be, with billions of dollars allocated last spring to unspent states and communities.
HELP TO SCHOOLS
The bill calls for approximately $ 130 billion in additional aid to schools for kindergarten through 12th grade students. The money would be used to downsize and adapt classrooms to increase social distance, install ventilation systems and purchase personal protective equipment. The money could also be used to hire more nurses, counselors and janitors and provide summer school.
Expenditure on colleges and universities would be boosted by about $ 40 billion, with the money being used to fund an institution’s pandemic-related expenses and provide emergency assistance to students to cover expenses such as food and housing and computer equipment.
There is also about $ 39 billion for childcare through an emergency fund to help childcare providers pay for staff, rent, and supplies, and through a block grant program that subsidizes the cost of childcare for low-income families.
SUPPORT FOR BUSINESSES
A new program for pandemic restaurants and bars would receive $ 28.6 billion. The grants provide up to $ 10 million per business with a limit of $ 5 million per physical location. The grants can be used to cover payroll, rent, utilities and other operating costs.
The bill also provides $ 7.25 billion for the Paycheck Protection Program, a small portion of what was allocated in previous legislation. The bill also allows more nonprofits to apply for loans that are designed to help borrowers cover their wages and business expenses, and that could potentially be forgiven.
TESTS AND VACCINES
The bill will bring in approximately $ 50 billion to expand testing for COVID-19 and improve contract discovery capabilities with new investments to expand lab capacity and set up mobile testing units. It also includes more than $ 15 billion to accelerate the distribution and delivery of COVID-19 vaccines across the country. Another $ 1 billion would go to boost confidence in the vaccine. And $ 10 billion would be used to boost the supply of medical devices and equipment to fight the virus under the Defense Production Act.
HEALTHCARE
Parts of the legislation promote long-standing democratic priorities, such as increasing coverage under the Obama-era Affordable Care Act. Financial support for ACA premiums would become significantly more generous and a greater number of solid middle-class households would be eligible. While the sweetened grants only last until the end of 2022, they will reduce coverage costs and are expected to increase the number of people enrolled.
The measure also dangles more money for a dozen states, mostly in the South, that have not yet picked up the Medicaid extension available under the ACA to cover more low-income adults. Whether such a sweetener would be enough to mitigate longstanding Republican opposition to Medicaid expansion is uncertain.
The bill would also provide about $ 3 billion for states to help address mental health and substance use disorders exacerbated by the pandemic. More than $ 14 billion has been earmarked for increased support for the Department of Veterans Affairs.
GREATER TAX BREAKS FOR HOUSEHOLDS WITH AND WITHOUT CHILDREN
Under current law, most taxpayers can reduce their federal income taxes by up to $ 2,000 per child. In a major change, the bill would increase the tax break to $ 3,000 for each child ages 6 to 17 and $ 3,600 for each child under the age of 6.
Legislation also requires payments to be made monthly rather than all at once. If the Minister of Finance determines that this is not feasible, the payments should be made as often as possible.
Families would get full credit no matter how little they earn in a year, leading to criticism that the changes act as a hindrance to work. Add to that the $ 1,400 checks and other items in the proposal and the legislation would cut the number of children living in poverty by more than half, according to Columbia University’s Center on Poverty and Social Policy.
The bill also significantly expands earned income tax credit for 2021 by making it available to those without children. The low- and middle-income adult credit would be worth $ 543 to $ 1,502 depending on income and application status.
RENTAL ASSISTANCE AND HOUSE OWNERS
The bill will raise more than $ 30 billion to help low-income households pay their rent and help the homeless. States and tribes would receive an additional $ 10 billion for homeowners struggling with mortgage payments and other housing costs due to the pandemic.