The Stimulus Bill Explained
Image Source: Chip Somodevilla via Getty Images
In crisis, the American people look to their government with a plea that refuses to go unheard: Help us. After a few failed attempts, The Senate passed a two trillion dollar stimulus bill to protect the lives of the American people and the businesses that make up the backbone of this country. In an act of bipartisanship, the bill passed with a unanimous vote at 96-0. The House will meet in the morning on Friday to discuss the stimulus package, where it is hoping to pass via voice vote.
The stimulus bill was designed as a bipartisan relief package to support the United States of America in light of the COVID-19 pandemic. The bill aims to support Americans who are struggling due to unemployment, inability to pay for housing and paying for healthcare related to the novel coronavirus. The bill also supports the economy through helping businesses who are struggling due to the failing market and lack of commerce. The bill also extends to healthcare, local government and expanding state benefits.
What are the details of the stimulus bill? How will it affect you personally? Here is a simplified breakdown of what it means for individuals, businesses, and the economy overall.
INDIVIDUALS
For adults who make under $75,000/year and are not being filed as a dependent on someone else's taxes, the stimulus payment would be $1,200.
For married couples who make under $150,000 and have two children, the stimulus payment would be $3,400.
For children under 17, the stimulus payment would be $500 per child, and would be distributed through their head of household.
Treasury Secretary Steven Mnuchin arrives at the US Capitol. Photo Source: Chip Somodevilla via Getty Images
UNEMPLOYMENT INSURANCE
An additional $600 would be added per week on top of existing state unemployment benefits for up to four months.
The bill adds 13 weeks of extended benefits on top of the state’s unemployment time period. This extension would be fully covered by the federal government.
BUSINESSES
The airline industry will receive $46 billion dollars in funding. $25 billion of that would be designated for passenger airlines, $4 billion will be for cargo airplane companies, and $17 billion will go towards miscellaneous services deemed essential to the economy.
A $350 billion forgivable loan program has been designed as part of the bill to ensure that small businesses do not lay off any of their employees. Under the bill, there will be a 50% refundable payroll tax credit on worker’s wages that is aimed to incentivize businesses to retain their staff.
There will be $454 billion given broadly to provide loans to states, miscellaneous businesses and municipalities.
Public transit agencies would get $25 billion in assistance, due to losing hundreds of thousands after a loss in ridership.
$25 million will go to The John F. Kennedy Center for the Performing Arts, to ensure that the center will be able to reopen in the summer.
HEALTHCARE
$117 billion will go to medical care and hospital funding at the request of multiple healthcare advocacy groups. Additionally, there will be a 50% reduction and a delay on payroll tax payments for healthcare and hospital employers.
Image Source: Claudio Furlan via Associated Press
$16 billion will go towards the purchasing of medical supplies for the Strategic National Stockpile.
$1 billion will be provided to the Defense Production Act for purchasing supplies.
$1.3 billion will go to funding community health centers.
$450 million will be provided for The Emergency Food Assistance Program.
THE FINE PRINT
The legislation prohibits federally elected officials and their immediate relatives from obtaining funds from the $500 billion program. The payment would decrease in amount until it stops altogether for single people with a cap at $99,000. The same goes for married people who have no children, and caps at $198,000. The family payments would stop if their income exceeds $218,000.
To receive a payment, the recipient must have a social security number. Recipients do not have to pay income taxes on the payment amount.
Students and some elderly people may not receive a stimulus check if they are counted as dependents. If a student’s parents claimed the student as a dependent on their taxes in 2019, the student will not receive a payment. Additionally, because the student is over 17, they do not count as a child and therefore the parent would not receive the additional $500.
The Department of Education will suspend payments on student loan borrowers without penalty through September 30.
WHEN AND HOW WILL THE MONEY BE SENT
Given the passage of the bill in Congress over the weekend, Treasury Secretary Steven Mnuchin has said that he expected for most people to start receiving their payments within three weeks. The payments will most likely be through the Internal Revenue Service. The IRS should already have people’s bank account information—they will transfer the money to citizens via direct deposit based on the recent income-tax figures it already has.
The bill is not final yet. The house still has the ability to make changes. There has been pushback from the public over the exclusion of college students from receiving aid, and for the lack of tax credit extensions for the wind and solar industry. The bill has overall been praised on both sides of the political spectrum, and has support from U.S. President Donald Trump.