Congress is expected to approve a $900 billion Covid-19 economic relief package as well as the $1.4 trillion government funding omnibus Monday, after legislative leaders came to an agreement on the contentious coronavirus aid measure late Sunday.
After the Senate, House and White House agreed on the federal Covid-19 relief package, Republicans heralded the measure Monday as an example of “targeted relief.”
The package includes $300-per-week unemployment insurance, one-time stimulus checks of $600 per person, $284 billion to reload the popular Paycheck Protection Program for small businesses, $82 billion to aid schools, $27 billion for transportation, $25 billion for rental assistance — along with a continued eviction moratorium — and $10 billion for child care.
The legislation does not include retroactive unemployment insurance payments of $600 per week for the spring and summer, stimulus checks for undocumented adults and children, the Democrat-pushed direct aid for state and local government, or the Republican-backed liability protection for businesses from Covid-19 related lawsuits.
The total funding for the bill is also less than the $2 trillion House Democrats had called for and even the $1.6 trillion pitched in September by Treasury Secretary Steven Mnuchin.
While the bill addresses unemployment insurance and direct stimulus payments, which are expected to help millions of Americans, it also has some key provisions that should positively impact residents and businesses across Vermont.
The breakdown
Coronavirus Relief Fund deadline extended — While there is no new funding for state and local government, the federal bill does give states until the end of 2021 to allocate remaining money that was awarded in the CARES Act.
Vermont received $1.5 billion, and the Scott administration reports $20 million remains. The governor has proposed spending it on businesses impacted by Covid-19, including retailers, salons, gyms, wedding planners, photographers and florists.
Lawmakers will consider the administration’s proposal next week, but may hold off on decisions until the legislative session begins in January.
Paycheck Protection Program reloaded — The legislation expands eligibility for nonprofits and local news organizations, and more money is available for restaurants and live-event venues.
As part of the PPP stipulation, there is a loan forgiveness program for small businesses that receive $150,000 or less in aid.
There is also $15 billion in dedicated funding for live venues, independent movie theaters and cultural institutions. Grants can be up to 50% of revenue lost during the Covid-19 pandemic. Of that $15 billion, $2 billion is set aside for businesses with 50 or fewer employees.
Food assistance — The legislation increases Supplemental Nutrition Assistance Program (SNAP) benefits by 15% for six months but does not expand eligibility.
Unemployment benefits — The bill has money for $300 per week of unemployment for 11 weeks. That’s down from the $600 under the CARES Act. However, there is also an extra $100 of unemployment for people who were working multiple jobs before the pandemic. People eligible for the mixed earner unemployment compensation program could receive $400 per week.
The $600 stimulus checks to working adults and their children means that a family of four will receive $2,400. Mnuchin told the Washington Post Monday that checks will start rolling out to Americans as soon as next week.
Emergency broadband benefit — There is a $3.2 billion program to cover stipends of $50 per month for people to pay for broadband, for those who qualify.
There is also $300 million for rural broadband buildout — something that has long been a priority for the Vermont Legislature.
“No sprawling left-wing wish list. No unconstrained bailouts for state and local government, with no connection to Covid needs. Just smart, targeted, bipartisan policies,” said Senate Majority Leader Mitch McConnell, R-Ky., in describing the bill Monday morning.
Biden expected to do more
Though Senate Democrats signaled support for the measure, they said it falls well short of what they believe is needed to deal with the coronavirus and the economic crisis it caused.
“Anyone who thinks this is enough does not know what’s going on in America and has not looked into the eyes of a small business owner, a restaurant owner losing their business,” said Senate Minority Leader Chuck Schumer, D-N.Y. He expects to work with the incoming Biden administration to pass an additional package in the new year.
Sen. Patrick Leahy, D-Vt., who is vice chair of the Senate Appropriations Committee, said Monday that the coronavirus relief bill is a mixed bag, but it must pass now.
“This is not the bill I would have written on my own. It includes things I support and things I oppose. But on balance, passage of this bill is unquestionably in the interest of the American people, and both the House and the Senate should act on it quickly,” he said.
Sen. Bernie Sanders, I-Vt., who had pushed for $1,200 stimulus checks, echoed Schumer, saying President-elect Joe Biden must push for greater relief after he is inaugurated on Jan. 20.
“The Covid-relief bill that Congress will vote on today will help many, but goes nowhere near far enough,” Sanders said. “The Biden administration, on day one, must bring forth a major economic relief bill that addresses the severe economic pain of working families — including more direct payments.”
