Highlights of the $ 1.9T COVID bill approaching its final pass

Democrats said their “American rescue program” would help the country defeat the virus and bring the economy back to good health. Republicans have criticized the $ 1.9 trillion package for being unnecessarily expensive. The bill follows five previous virus bills, totaling about $ 4 trillion, passed by Congress since last spring.

See some highlights of the law:

The federal unemployment allowance expansion will be extended for $ 300 a week until September 6. This is in addition to what the beneficiaries get through the state’s unemployment insurance program. The first $ 10,200 of unemployment allowance is tax exempt for households with incomes less than $ 150,000.

In addition, this measure provides a 100% subsidy for COBRA health insurance premiums to ensure that dismissed workers can continue their employer’s health plan free of charge until the end of September.

The law provides for a direct payment of $ 1,400 for a taxpayer, $ 2,800 for a jointly filed couple, and $ 1,400 per dependent. Individuals with incomes up to $ 75,000 will receive the full amount, as will couples with incomes up to $ 150,000.

Check size is a tight cutoff of $ 80,000 for individuals and $ 160,000 for couples, which is a reduction for those who make a little more.

Most Americans will get the full amount. According to the US Census Bureau, median household income in 2019 was $ 68,703.

Money for state and local governments

The bill will remit $ 350 billion to state, local and tribal governments incurred by the end of 2024. The bill also requires small countries to receive the amount they received under the virus law passed by Congress at least last March.

Many communities have hit the tax base during a pandemic, but the impact varies from state to state and from town to town. Critics say funding has not been properly targeted, needed more than necessary, and billions of dollars have not yet been spent on states and communities last spring.

The bill requires approximately $ 130 billion in additional school support for students from kindergarten to grade 12. This money will be used to reduce the number of students in the class, change classrooms to increase social distance, install ventilation systems and purchase personal protective equipment. This money could also be used to increase the employment of nurses and counselors and to provide summer schools.

University spending will increase by about $ 40 billion, which will be used to cover the facility’s pandemic-related costs and provide students with emergency assistance to cover food, housing, computer equipment and other costs. ..

A new program for restaurants and bars damaged by the pandemic will receive $ 25 billion. Grants offer up to $ 10 million per company and have a $ 5 million limit per physical location. Grants can be used to cover salaries, rent, utilities and other operating costs.

The bill also provides the Paycheck Protection Program with $ 7.25 billion. This is just a small part of what was assigned by previous law. The bill is also designed to help borrowers cover their salaries and operating costs, allowing more nonprofits to apply for potentially permissible loans. ..

The bill will add $ 46 billion to expand federal, state and local inspections of COVID-19, expand laboratory capabilities and enhance contract tracking capabilities with new investments to install mobile inspection units. Offers. It also includes approximately $ 14 billion to speed up the distribution and management of the COVID-19 vaccine nationwide.

Part of the law advances long-standing democratic priorities, including greater coverage under the Obama era’s affordable care law. Financial assistance for ACA premiums will be much more generous and more solid households in the middle class will qualify. The sweetened subsidies will only last until the end of 2022, but they are expected to reduce the cost of compensation and increase the number of registered people.

The bill also hangs more money in front of 12 states, primarily in the south, which have not yet adopted the Medicaid expansion available under the ACA to target more low-income adults. I am. It’s unclear if such sweeteners are sufficient to eradicate long-standing Republican opposition to the expansion of Medicaid.

Large tax credits for households with and without children

Current law allows most taxpayers to reduce their federal income tax claims by up to $ 2,000 per child. As a significant change, the bill will raise tax cuts to $ 3,000 for all children between the ages of 6 and 17 and $ 3,600 for all children under the age of 6.

The law also requires payments to be delivered monthly rather than in bulk. If the Treasury decides it is not feasible, payments should be made as often as possible.

No matter how much income a family earns in a year, they will gain full credibility, leading to criticism that the change will discourage them from working. According to the Center for Poverty and Social Policy at Columbia University, adding a $ 1,400 check and other items to the proposal will reduce the number of children in poverty by more than half by law.

The bill will also significantly increase the 2021 earned income tax credit by making it available to people without children. Credits for low- and middle-income adults are valued at $ 543 to $ 1,502, depending on income and filing status.

Rental and homeowner support

The bill will help low-income households and the unemployed pay rent and utilities, and will provide approximately $ 30 billion to help homeless people with vouchers and other assistance. States and tribes will receive an additional $ 10 billion for homeowners struggling to pay their mortgages due to a pandemic.

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