The good news is that the relief package has been signed. The bad news is that it falls short of what is needed and does not provide aid to cities and towns. The long range ramifications of this shortcoming are of course yet to be realized, but will leave local and state authorities scrambling for ways to either raise additional revenue or cut services. Most likely both. The small business community, which is already heavily taxed and reliant on local services will be particularly hard hit by whatever steps will be taken to balance budgets and provide critical services.
As passed, this is what the relief bill promises:
- Another round of direct stimulus payments of up to $600 per person for most Americans, with another $600 for each dependent child living in the same household;
- 11 additional weeks of unemployment insurance benefits, including for the self-employed and independent contractors, and an additional $300 unemployment benefit for all;
- An additional 11 weeks of federal financing for work-sharing programs to help businesses keep workers on the job;
- $325 billion for small businesses, including $284 billion for Paycheck Protection Program (PPP) loans, and $15 billion for the Save our Stages (SOS) Act, which I cosponsored to help concert venues and theaters;
- $69 billion to support vaccines, testing, and contact tracing, including roughly $32 billion for vaccine procurement and distribution, more than $22 billion for testing, tracing, and COVID-19 mitigation, $4.5 billion in mental health and substance use disorder funding, and $9 billion to support health care providers;
- $82 billion in emergency education funding, including $54.3 billion for K-12 education and $22.7 billion for higher education, so students can return to schools safely;
- $25 billion in rental and utility assistance for renters, similar to my Housing Assistance Fund legislation, and an eviction moratorium through January 31, 2021;
- $13 billion in increased benefits for the Supplemental Nutrition Assistance Program (SNAP) and other child nutrition benefits, and $400 million for food banks through the Emergency Food Assistance Program (TEFAP). It also provides $1.5 billion to fund purchases of food for distribution to those in need, and to provide worker protection measures and retooling support for farmers, fishermen, farmers' markets, and food processors to respond to COVID-19;
- $10 billion in child care assistance to families and child care providers to help stabilize the sector, and $250 million for Head Start providers;
- And $2 billion to support the motorcoach and bus industry, including intercity bus services, charter bus operators, and school bus service providers, based on my bipartisan Coronavirus Economic Relief for Transportation Services (CERTS) Act of 2020.
The $600 per adult (one time) payment is, as pronounced by most economic experts, much too low to meet the needs that are out there. Although the U.S. House is expected to advocate for additional payments, the Senate is opposed so this may go nowhere (unless both run-off Senate elections in Georgia next month go democratic).
As with any legislation, especially one as complicated as the relief package, there will be lots of questions as to how to access funds and understand just who is eligible for what. If you have any concerns, our professionals at ASN will be more than happy to work with you to understand how the relief package can benefit you. Feel free to give us a call.
