Highlights of the $ 1.9 T COVID bill approaching the final step

WASHINGTON – The Senate on Saturday approved a comprehensive pandemic relief package on the Republican opposition, which brought President Joe Biden closer to a landmark political victory that would provide $ 1,400 checks to most of the United States and direct thousands of millions of dollars to schools, state and local governments and businesses.

The bill was scrapped by a 50-49 vote from the party line after a nightly marathon voting session and is now back in the House for final approval, which could come early this week. next.

Democrats said their “American rescue plan” would help the country defeat the virus and restore the health of the economy. Republicans criticized the $ 1.9 trillion package for being more expensive than necessary. The measure follows five previous virus bills totaling about $ 4 trillion that Congress has enacted since last spring.

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A look at some highlights of the legislation:

HELP THE UNEMPLOYED

The federal government’s extended unemployment benefits will be extended through Sept. 6 to $ 300 a week. This is in addition to what beneficiaries get through their state unemployment insurance program. The first $ 10,200 in unemployment benefits would not be taxable for households with incomes below $ 150,000.

In addition, the measures provide a 100% subsidy for COBRA health insurance premiums to ensure that laid-off workers can remain in their employers ’health plans at no cost until the end of September.

MORE CONTROLS

The law provides for a direct payment of $ 1,400 for a single taxpayer or $ 2,800 for a married couple to process together, plus $ 1,400 per dependent. People who earn up to $ 75,000 would get the full amount, as would married couples with incomes of up to $ 150,000.

The size of the check would be reduced for those who do a little more, with a hard limit of $ 80,000 for individuals and $ 160,000 for married couples.

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Most Americans will receive the full amount. The median income for a household was $ 68,703 in 2019, according to the U.S. Census Bureau.

MONEY FOR STATE AND LOCAL GOVERNMENTS

The legislation would send $ 350 billion to state and local governments and tribal governments for costs incurred by the end of 2024. The bill also requires small states to get at least the amount they received under anti-virus legislation. which Congress passed last March.

Many communities have had successes at their tax base during the pandemic, but the impact varies from state to state and city to city. Critics say the funding is not properly targeted and is far more than necessary, with billions of dollars allocated last spring to states and communities that have not yet been spent.

HELP SCHOOLS

The bill provides for approximately $ 130 billion in additional aid to schools for kindergarten through 12th grade students. The money would be used to reduce the size of the classrooms and modify classrooms to improve social distancing, install ventilation systems, and purchase personal protective equipment. The money could also be used to increase the hiring of nurses and counselors and to provide summer school.

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Expenditure on colleges and universities would increase by about $ 40 billion, with money to cover pandemic expenses of an institution and to provide emergency assistance to students to cover expenses such as food and housing and computer equipment.

HELP BUSINESS

A new program for restaurants and bars affected by the pandemic would receive $ 25 billion. Grants provide up to $ 10 million per company with a limit of $ 5 million per physical location. Grants can be used to cover payroll, rent, utilities, and other operating expenses.

The bill also provides $ 7.25 billion for the Payment Check Protection Program, a small fraction of what was allocated to previous legislation. The bill also allows for more non-profit loans designed to help borrowers meet their payroll and operating expenses and which can be forgiven.

TESTS AND VACCINES

The bill provides $ 46 billion to expand federal, state and local testing of COVID-19 and improve contract tracking capabilities with new investments to expand laboratory capacity and set up mobile testing units. It also contains about $ 14 billion to accelerate the distribution and administration of COVID-19 vaccines nationwide.

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HEALTHCARE

Parts of the legislation advance long-standing Democratic priorities, such as increasing coverage under the Obama-era Affordable Care Act. Financial assistance for ACA premiums would become considerably more generous and more middle-class solid households would qualify. Although the sweetened grants will only last until the end of 2022, they will reduce the cost of coverage and the number of people enrolled is expected to increase.

The measure also hangs more money in front of a dozen states, mostly in the south, that have yet to adopt the Medicaid expansion available at the ACA to cover more low-income adults. It’s uncertain if this sweetener would be enough to start wearing down long-standing Republican opposition to Medicaid expansion.

BIGGER TAX DISCOUNTS FOR THE HOME WITH CHILDREN AND WITHOUT CHILDREN

Under current legislation, most taxpayers can reduce their income tax bill by up to $ 2,000 per child. In a significant change, the bill would increase the tax credit to $ 3,000 for every 6- to 17-year-old and $ 3,600 for every 6-year-old.

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The legislation also requires payments to be made monthly rather than globally. If the Secretary of the Treasury determines that it is not feasible, payments will be made as often as possible.

Families would get full credit regardless of how little they earn in a year, which will lead to criticism that the changes would serve as a disincentive to work. Add the $ 1,400 checks and other items to the proposal, and the legislation would reduce the number of children living in poverty by more than half, according to the Columbia University Center for Poverty and Social Policy.

The bill also significantly expands the income tax credit earned by 2021, making it available to people without children. Credit for low- and moderate-income adults will be worth between $ 543 and $ 1,502, depending on income and presentation status.

RENTAL AND ASSISTANCE TO THE OWNER

The bill provides about $ 30 billion to help low-income households and the unemployed pay rent and utilities, and to help the homeless with vouchers and other supports. States and tribes would receive an additional $ 10 billion for homeowners suffering mortgage payments due to the pandemic.