WASHINGTON (AP) – The Senate has approved a sweeping pandemic aid package on the Republican opposition on Saturday, bringing President Joe Biden closer to a landmark political victory that would bring in $ 1,400 checks for most of the U.S. and billions of dollars direct to schools, state and local governments, and businesses.
The bill was passed by a 50-49 party line vote after a marathon nightly ballot and is now going back to Parliament for the final passage, which could come early next week.
Democrats said their “American bailout” would help the country defeat the virus and restore the economy to health. Republicans criticized the $ 1.9 trillion package as more expensive than necessary. The measure follows five previous virus bills totaling about $ 4 trillion that Congress has passed since last spring.
A look at some of the 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 would not be taxable for households with incomes less than $ 150,000.
In addition, the measures provide for a 100% subsidy from the COBRA health insurance premiums to ensure that the laid-off workers can stay on 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 shrink 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.
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 necessary, with billions of dollars allocated to states and communities not yet spent last spring.
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 and counselors and provide summer school.
Expenditure on colleges and universities would be increased 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.
SUPPORT FOR BUSINESSES
A new program for pandemic restaurants and bars would receive $ 25 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 tiny fraction 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 $ 46 billion to expand federal, state and local testing for COVID-19 and to enhance contract discovery capabilities with new investments to expand lab capacity and set up mobile testing units. It also includes about $ 14 billion to accelerate the distribution and delivery of COVID-19 vaccines across the country.
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 started the Medicaid expansion 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.
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. With 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 the full credit no matter how little they earn in a year, sparking criticism that the changes would act as a barrier 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 provides about $ 30 billion to help low-income and unemployed households pay rent and utilities, and help homeless people with vouchers and other support. States and tribes would receive an additional $ 10 billion for homeowners struggling with mortgage payments due to the pandemic.