Breaking News – Approximately $900 Billion Deal Reached on Emergency Relief Package
Published: 12.21.2020
How: Congress passed a one-day extension of government funding late Sunday, December 20th, to give lawmakers one more day to review the deal to avert a partial government shutdown deadline. For the bill to become law, both the House and Senate must pass the legislation, and President Trump will need to sign it. Both chambers are expected to debate and vote on the package today, December 21st. As of this morning, legislative text had not yet been released, but there is information circulating that provides insight into what we can expect to see in the bill.What: From what we glean at this time, the agreement provides a tax credit to support employers offering paid sick leave, based on the context of the Families First Coronavirus Response Act, enacted in March.
The bill includes legislation to protect patients from getting massive “surprise” medical bills clearing the way for the measure to pass Congress after almost two years of negotiations. The legislation will protect patients from getting medical bills for thousands of dollars in common situations like going to the emergency room and getting care from a doctor who happened to not be covered by the patient’s insurance plan.
The bill would also direct $166 billion into another round of tax rebates, less generous for adults at up to $600 each, but parents would get an extra $600 per child, up from $500 in the March aid law. Payment amounts would start phasing out at the same income thresholds as in March: $75,000 for individual filers and $150,000 for married couples filing jointly. It would also extend federal unemployment benefits of up to $300 per week, which could start as early as December 27th.
The legislation includes about $325 billion in business relief, including about $275 billion for another round of Paycheck Protection Program (PPP) funding. The bill would allow businesses to deduct expenses on their taxes for costs that were paid for by the federal government through the PPP.
The final bill is expected to include about $325 billion in aid to small businesses. Other funding includes $20 billion for small business disaster loans in low-income communities and $15 billion in grants to live entertainment venues, independent movie theaters, and museums.
In a potential boost for upscale restaurants, bill writers sought to revive the “three-martini lunch” of a bygone era. The bill would restore 100% expensing of business meals for the next two years, up from the current 50% maximum expense. The bill includes about $32 billion for federal and state efforts to procure and distribute vaccines. Another $22 billion would go to states for virus testing and contact tracing.
Other elements of the package include:
- $82 billion to make schools and colleges safer for in-person learning, including $2.75 billion for private schools.
- $10 billion for childcare assistance, including to help day care providers with operating expenses.
- For those at risk of becoming homeless, the bill would offer $25 billion in direct rental assistance, while extending a federal moratorium on evictions through January 31st.
- Allowing lower-income child tax credit and earned income credit recipients to claim larger benefits for 2020.
- $13 billion in increased food stamps and child nutrition benefits, as well as $13 billion for agricultural producers.
- $7 billion to increase access to broadband in rural and underserved communities.
