Covid-19 Relief Package Highlights by Syed & Aadil

The Covid-19 relief package was just approved by the Senate late Wednesday night with a unanimous vote of 96-0. This was the third attempt to get the bill approved. The House will vote on the bill Friday morning. All things considered, there is $2 trillion in aid coming to the American public. So, what is entailed in this bill and who gets how much? Here are some highlights:

• $1,200 per individual and $2,400 per couple with an additional $500 per dependent child. This is based on your 2019 tax return. If you have not filed yet, it will be based on your 2018 tax return. The benefits phase out at earnings of $75,000 per individual and $150,000 per couple, and completely go away for earnings of $99,000 and $198,000 respectively.
• Unemployment insurance has been expanded from 3 months to 4 months. Beneficiaries will receive $600 per week in addition to what they are already receiving from their state. The eligibility has also expanded to self-employed persons and independent contractors.
• There will be a $500 billion pool of taxpayer money to make loans and loan guarantees to businesses, states, and municipalities damaged by the pandemic.
• $17 billion for loans and loan guarantees to undetermined “businesses critical to maintaining national security.”
• $350 billion for loans to small businesses.
• Tax credits for retaining employees, worth up to 50% of wages, paid during the crisis. Also, tax credits for businesses forced to suspend operations and have seen at least a 50% decrease in gross receipts from the previous year.
• Delay payroll tax for employers, requiring half of the deferred taxes to be paid by the end of 2021 and the other half by the end of 2022.
• $30 billion in aid to an Education Stabilization Fund to help states, schools and institutions of higher education to cover expenses accrued due to the crisis.
• Suspend federal student loan repayments until September 30, 2020 without any accrual of interest.
• $500 billion grant to airlines and $4 billion grant to cargo carriers exclusively to pay employee wages, salaries and benefits. Another $25 billion and $4 billion dollars, respectively, for loans and loan guarantees.
• $25 billion for transit systems which will be distributed using existing formulas.
• $1.4 billion for the deployment of the National Guard under the direction of each state’s governor.
• $117 billion for hospitals and veterans’ healthcare.
• $16 billion into the strategic national stockpile of pharmaceutical and medical supplies.
• Require group health plans and insurance providers to cover preventive services related to Covid-19 without cost-sharing.
• Bar employees and executives who made $425,000 or more in 2019 from getting a raise.
• Ban companies that take government loans from buying back stock until the loan is completely repaid.
• Stop President Trump and his family members’ businesses from receiving emergency taxpayer relief. This also includes Vice-President Mike Pence, heads of executive departments and members of congress, and their family members. 

There is a lot to consider with this new relief package, and will mean different benefits for different people. Talk to a fiduciary financial advisor about eligibility for relief, how to receive benefits, and how to get your life back on track. 

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