Please ensure Javascript is enabled for purposes of website accessibility
Highlights of the $1.9T COVID Bill Nearing Final Passage
gvw_ap_news
By Associated Press
Published 4 years ago on
March 7, 2021

Share

The Senate approved a sweeping pandemic relief package over Republican opposition on Saturday, moving President Joe Biden closer to a milestone political victory that would provide $1,400 checks for most American and direct billions of dollars to schools, state and local governments, and businesses.

The bill cleared by a party-line vote of 50-49 after a marathon overnight voting session and now heads back to the House for final passage, which could come early next week.

Democrats said their “American Rescue Plan” would help the country defeat the virus and nurse the economy back to health. Republicans criticized the $1.9 trillion package as more expensive than necessary. The measure follows five earlier virus bills totaling about $4 trillion that Congress has enacted since last spring.

A look at some highlights of the legislation:

AID TO THE UNEMPLOYED

Expanded unemployment benefits from the federal government would be extended through Sept. 6 at $300 a week. That’s on top of what beneficiaries are getting through their state unemployment insurance program. The first $10,200 of jobless benefits would be non-taxable for households with incomes under $150,000.

Additionally, the measures provides a 100% subsidy of COBRA health insurance premiums to ensure that the laid-off workers can remain on their employer health plans at no cost through the end of September.

MORE CHECKS

The legislation provides a direct payment of $1,400 for a single taxpayer, or $2,800 for a married couple that files jointly, plus $1,400 per dependent. Individuals earning up to $75,000 would get the full amount, as would married couples with incomes up to $150,000.

The size of the check would shrink for those making slightly more, with a hard cut-off at $80,000 for individuals and $160,000 for married couples.

Most Americans will be getting the full amount. The median household income was $68,703 in 2019, according to the U.S. 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 up until the end of 2024. The bill also requires that small states get at least the amount they received under virus legislation that Congress passed last March.

Many communities have taken hits to their tax base during the pandemic, but the impact varies from state to state and from town to town. Critics say the funding is not appropriately targeted and is far more than necessary with billions of dollars allocated last spring to states and communities still unspent.

AID TO SCHOOLS

The bill calls for about $130 billion in additional help to schools for students in kindergarten through 12th grade. The money would be used to reduce class sizes and modify classrooms to enhance social distancing, install ventilation systems and purchase personal protective equipment. The money could also be used to increase the hiring of nurses and counselors and to provide summer school.

Spending for colleges and universities would be boosted by about $40 billion, with the money used to defray an institution’s pandemic-related expenses and to provide emergency aid to students to cover expenses such as food and housing and computer equipment.

AID TO BUSINESSES

A new program for restaurants and bars hurt by the pandemic would receive $25 billion. The grants provide up to $10 million per company with a limit of $5 million per physical location. The grants can be used to cover payroll, rent, utilities and other operational expenses.

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 non-profits to apply for loans that are designed to help borrowers meet their payroll and operating costs and can potentially be forgiven.

TESTING AND VACCINES

The bill provides $46 billion to expand federal, state and local testing for COVID-19 and to enhance contract tracing capabilities with new investments to expand laboratory capacity and set up mobile testing units. It also contains about $14 billion to speed up the distribution and administration of COVID-19 vaccines across the country.

HEALTH CARE

Parts of the legislation advance longstanding Democratic priorities like increasing coverage under the Obama-era Affordable Care Act. Financial assistance for ACA premiums would become considerably more generous and a greater number of solid middle-class households would qualify. Though the sweetened subsidies last only through the end of 2022, they will lower the cost of coverage and are expected to boost the number of people enrolled.

The measure also dangles more money in front of a dozen states, mainly in the South, that have not yet taken up the Medicaid expansion that is available under the ACA to cover more low-income adults. Whether such a sweetener would be enough to start wearing down longstanding Republican opposition to Medicaid expansion is uncertain.

BIGGER TAX BREAKS FOR HOUSEHOLDS WITH AND WITHOUT KIDS

Under current law, most taxpayers can reduce their federal income tax bill by up to $2,000 per child. In a significant change, the bill would increase the tax break to $3,000 for every child age 6 to 17 and $3,600 for every child under the age of 6.

The legislation also calls for the payments to be delivered monthly instead of in a lump sum. If the secretary of the Treasury determines that isn’t feasible, then the payments are to be made as frequently as possible.

Families would get the full credit regardless of how little they make in a year, leading to criticism that the changes would serve as a disincentive to work. Add in the $1,400 checks and other items in the proposal, and the legislation would reduce the number of children living in poverty by more than half, according to the Center on Poverty and Social Policy at Columbia University.

The bill also significantly expands the Earned Income Tax Credit for 2021 by making it available to people without children. The credit for low and moderate-income adults would be worth $543 to $1,502, depending on income and filing status.

RENTAL AND HOMEOWNER ASSISTANCE

The bill provides about $30 billion to help low-income households and the unemployed afford rent and utilities, and to assist the homeless with vouchers and other support. States and tribes would receive an additional $10 billion for homeowners who are struggling with mortgage payments because of the pandemic.

RELATED TOPICS:

DON'T MISS

Russia Urges Citizens to Leave Israel as Tensions with Hezbollah Escalate

DON'T MISS

Taxpayers in 24 States Will Be Able to File Their Returns Directly With the IRS in 2025

DON'T MISS

California Collects Millions in Stolen Wages, but Can’t Find Many Workers to Pay Them

DON'T MISS

Sweet Lola on the Mend, Ready for a Forever Home

DON'T MISS

Houthis Vow Retaliation Against US for Yemen Airstrikes

DON'T MISS

Chavez-Quintero Debate: How Would You Rate City-County Cooperation?

DON'T MISS

Biden Talks Election, Economy and Middle East in Surprise News Briefing

DON'T MISS

Big Money Rolling in from Commercial Builders for Local School Bond Measure Campaigns

DON'T MISS

Behind the Scenes at Fresno Chaffee Zoo’s Sea Lion Cove: A Flipper-tastic Adventure

DON'T MISS

Clovis Daytime Burglary: 2 Suspects Arrested, 1 at Large

UP NEXT

Trump Stalled California Wildfire Aid? Ex-Aide Reveals Political Motive

UP NEXT

Some California Stem Cell Clinics Use Unproven Therapies. A New Court Ruling Cracks Down.

UP NEXT

Tulare County Teen Arrested for School Shooting Threat

UP NEXT

Why Is California Getting an Avalanche of Unexpected Tax Revenue?

UP NEXT

Last Call at 4 a.m. in California? Governor Says Yes for One Private Club in LA Clippers’ New Arena

UP NEXT

Judge Blocks New California Law Cracking Down on Election Deepfakes

UP NEXT

Californians Could See a Credit on Their Electricity Bill. How Much Will You Get?

UP NEXT

Chemical Smoke Spewing From a Georgia Factory Is Projected to Spread Toward Atlanta as Winds Shift

UP NEXT

As Extreme Heat Rises, Newsom Blocks Bill to Protect California Farmworkers

UP NEXT

California Streamlines License Renewal Process for Drivers 70 and Older

Sweet Lola on the Mend, Ready for a Forever Home

23 hours ago

Houthis Vow Retaliation Against US for Yemen Airstrikes

1 day ago

Chavez-Quintero Debate: How Would You Rate City-County Cooperation?

1 day ago

Biden Talks Election, Economy and Middle East in Surprise News Briefing

1 day ago

Big Money Rolling in from Commercial Builders for Local School Bond Measure Campaigns

2 days ago

Behind the Scenes at Fresno Chaffee Zoo’s Sea Lion Cove: A Flipper-tastic Adventure

2 days ago

Clovis Daytime Burglary: 2 Suspects Arrested, 1 at Large

2 days ago

Trump Stalled California Wildfire Aid? Ex-Aide Reveals Political Motive

2 days ago

Costa Bill Opens Grants for Heavy Manufacturers to Start Using Hydrogen

2 days ago

Watch: Fresno County Supervisor District 3 Debate

2 days ago

Russia Urges Citizens to Leave Israel as Tensions with Hezbollah Escalate

Russia has advised its citizens to leave Israel amid rising tensions with Hezbollah and Iran, reports Newsweek. Moscow’s ambassador to...

19 hours ago

19 hours ago

Russia Urges Citizens to Leave Israel as Tensions with Hezbollah Escalate

22 hours ago

Taxpayers in 24 States Will Be Able to File Their Returns Directly With the IRS in 2025

22 hours ago

California Collects Millions in Stolen Wages, but Can’t Find Many Workers to Pay Them

23 hours ago

Sweet Lola on the Mend, Ready for a Forever Home

1 day ago

Houthis Vow Retaliation Against US for Yemen Airstrikes

Challenger Luis Chavez and incumbent supervisor Sal Quintero debate in Fresno, Thursday, Oct. 3, 2024.
1 day ago

Chavez-Quintero Debate: How Would You Rate City-County Cooperation?

1 day ago

Biden Talks Election, Economy and Middle East in Surprise News Briefing

2 days ago

Big Money Rolling in from Commercial Builders for Local School Bond Measure Campaigns

MENU

CONNECT WITH US

Search

Send this to a friend