- The Senate’s $2 trillion spending package will employ historic amounts of government cash to combat the coronavirus and its economic fallout.
- Legislators unveiled the fiscal stimulus plan Wednesday evening after days of blockages and hurried negotiations.
- The bill finally passed the Senate on Wednesday evening by a vote of 96-0. It now heads to the House of Representatives before making it to President Trump’s desk.
- Here’s where the Coronavirus Aid, Relief, and Economic Security Act or the ”CARES Act,” allocates its massive sum, from direct payments for Americans to nearly $1 trillion in wide-ranging business aid.
- Visit Business Insider’s homepage for more stories.
A $2 trillion spending bill will release unprecedented amounts of aid to combat the coronavirus’s effects across the US economy.
Senators unveiled the full text of the Coronavirus Aid, Relief, and Economic Security Act or “CARES Act” on Wednesday evening after days of blockages and negotiation between leaders in Congress and the White House. The approximately $2 trillion sum arrives as the coronavirus spreads throughout the nation and measures to restrict contagion rapidly slow economic activity.
The stimulus package went through several iterations before the Senate voted on the CARES Act on Wednesday evening at around 11 p.m. Eastern Time. The amendments voted on included changes to unemployment insurance provisions introduced by Republican Sen. Ben Sasse of Nebraska.
The legislation passed the Senate by a vote of 96-0 on Wednesday evening. It now heads to the House of Representatives before making it to President Trump’s desk.
Here’s where the bill will allocate its funds, from corporate loans to direct payments for Americans.
Nearly half of the bill’s total aid is set aside for business loans.
Struggling companies can draw from a $500 billion pool, though companies receiving emergency funds face several restrictions. Participating companies are banned from issuing stock buybacks or paying dividends until one year after they pay back their loans. Recipient firms will also be forced to limit executive compensation.
Trump has repeatedly hinted that much of the aid will flow to Boeing, which has seen its stock price tumble as much as 72% from mid-February highs.
The legislation further includes $50 billion specifically set aside for passenger air carriers. The industry is among the hardest hit by the virus, as containment measures cut into domestic travel and limited international flights.
Small businesses, or companies with 500 employees or less, will get $367 billion. The firms will be encouraged to maintain payroll, and costs including mortgage interest, rent, and utilities may be forgiven if certain requirements are met.
The Treasury Department will disclose terms for loans made to all firms, while a new inspector general will oversee the offerings.
State and local governments will receive up to $150 billion worth of loans.
Direct payments to lower- and middle-income Americans will reach $1,200 for each adult and $500 for each child younger than 17.
Sums will be delivered through direct deposit if such information was included in individuals’ tax returns, and otherwise reach Americans in the form of a mailed check.
Payments will be available for single filers who made less than $75,000 per year and married households taking in less than $150,000. The total amounts paid decline by $5 for every $100 in annual income above the set levels. The Treasury will refer to either 2018 or 2019 tax returns for income information.
The payments won’t be available for those without social security numbers or for nonresidents. Those without income or whose only income comes from benefit programs are still eligible for payments.
You can read the full text of the bill below: