Highlights of the $1.9T COVID bill nearing final passage

The $1.9 trillion bill approved Saturday carries direct payments of up to $1,400 for most Americans, extended emergency unemployment benefits and spending for COVID-19 vaccines and testing.

Posted: Mar 7, 2021 7:47 AM

WASHINGTON (AP) — The Senate approved a sweeping pandemic relief package over Republican opposition on Saturday, moving President Joe Biden closer to a milestone political victory that would provide $1,400 checks for most American and direct billions of dollars to schools, state and local governments, and businesses.

The bill cleared by a party-line vote of 50-49 after a marathon overnight voting session and now heads back to the House for final passage, which could come early next week.

Democrats said their “American Rescue Plan” would help the country defeat the virus and nurse the economy back to health. Republicans criticized the $1.9 trillion package as more expensive than necessary. The measure follows five earlier virus bills totaling about $4 trillion that Congress has enacted since last spring.

A look at some highlights of the legislation:

AID TO THE UNEMPLOYED

Expanded unemployment benefits from the federal government would be extended through Sept. 6 at $300 a week. That’s on top of what beneficiaries are getting through their state unemployment insurance program. The first $10,200 of jobless benefits would be non-taxable for households with incomes under $150,000.

Additionally, the measures provides a 100% subsidy of COBRA health insurance premiums to ensure that the laid-off workers can remain on their employer health plans at no cost through the end of September.

MORE CHECKS

The legislation provides a direct payment of $1,400 for a single taxpayer, or $2,800 for a married couple that files jointly, plus $1,400 per dependent. Individuals earning up to $75,000 would get the full amount, as would married couples with incomes up to $150,000.

The size of the check would shrink for those making slightly more, with a hard cut-off at $80,000 for individuals and $160,000 for married couples.

Most Americans will be getting the full amount. The median household income 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 up until the end of 2024. The bill also requires that small states get at least the amount they received under virus legislation that Congress passed last March.

Many communities have taken hits to their tax base during the pandemic, but the impact varies from state to state and from town to town. Critics say the funding is not appropriately targeted and is far more than necessary with billions of dollars allocated last spring to states and communities still unspent.

AID TO SCHOOLS

The bill calls for about $130 billion in additional help to schools for students in kindergarten through 12th grade. The money would be used to reduce class sizes and modify classrooms to enhance 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.

Spending for colleges and universities would be boosted by about $40 billion, with the money used to defray an institution’s pandemic-related expenses and to provide emergency aid to students to cover expenses such as food and housing and computer equipment.

AID TO BUSINESSES

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

The bill also provides $7.25 billion for the Paycheck Protection Program, a tiny fraction of what was allocated in previous legislation. The bill also allows more non-profits to apply for loans that are designed to help borrowers meet their payroll and operating costs and can potentially be forgiven.

TESTING AND VACCINES

The bill provides $46 billion to expand federal, state and local testing for COVID-19 and to enhance contract tracing capabilities with new investments to expand laboratory capacity and set up mobile testing units. It also contains about $14 billion to speed up the distribution and administration of COVID-19 vaccines across the country.

HEALTH CARE

Parts of the legislation advance longstanding Democratic priorities like increasing coverage under the Obama-era Affordable Care Act. Financial assistance for ACA premiums would become considerably more generous and a greater number of solid middle-class households would qualify. Though the sweetened subsidies last only through the end of 2022, they will lower the cost of coverage and are expected to boost the number of people enrolled.

The measure also dangles more money in front of a dozen states, mainly in the South, that have not yet taken up the Medicaid expansion that is available under the ACA to cover more low-income adults. Whether such a sweetener would be enough to start wearing down longstanding Republican opposition to Medicaid expansion is uncertain.

BIGGER TAX BREAKS FOR HOUSEHOLDS WITH AND WITHOUT KIDS

Under current law, most taxpayers can reduce their federal income tax bill by up to $2,000 per child. In a significant change, the bill would increase the tax break to $3,000 for every child age 6 to 17 and $3,600 for every child under the age of 6.

The legislation also calls for the payments to be delivered monthly instead of in a lump sum. If the secretary of the Treasury determines that isn’t feasible, then the payments are to be made as frequently as possible.

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

The bill also significantly expands the Earned Income Tax Credit for 2021 by making it available to people without children. The credit for low and moderate-income adults would be worth $543 to $1,502, depending on income and filing status.

RENTAL AND HOMEOWNER ASSISTANCE

The bill provides about $30 billion to help low-income households and the unemployed afford rent and utilities, and to assist the homeless with vouchers and other support. States and tribes would receive an additional $10 billion for homeowners who are struggling with mortgage payments because of the pandemic.

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 556381

Reported Deaths: 7098
CountyCasesDeaths
Hennepin1158471682
Ramsey47939856
Dakota42586422
Anoka38655415
Washington24993274
Stearns21052219
St. Louis16821298
Scott16013117
Wright14818127
Olmsted1276297
Sherburne1064880
Carver984945
Clay783490
Rice7649101
Blue Earth698640
Kandiyohi628181
Crow Wing618186
Chisago550650
Otter Tail543973
Benton532297
Mower451132
Goodhue444172
Douglas442870
Winona438649
Nobles400648
Morrison396059
McLeod395255
Isanti378259
Itasca373653
Beltrami372957
Polk366067
Steele364014
Becker356048
Lyon348648
Carlton329452
Freeborn328129
Pine312321
Nicollet307542
Brown294739
Mille Lacs282150
Le Sueur270822
Todd268830
Cass250426
Meeker237437
Waseca231421
Martin213429
Wabasha19953
Roseau197818
Renville172543
Hubbard172341
Dodge17193
Redwood166335
Houston162614
Cottonwood157021
Fillmore15179
Pennington151019
Chippewa146537
Wadena144621
Faribault144019
Sibley136410
Kanabec131721
Aitkin128736
Watonwan12569
Rock123019
Jackson117410
Yellow Medicine110819
Pipestone109926
Pope10306
Murray10269
Swift100018
Marshall85617
Stevens82210
Lake78419
Clearwater77814
Koochiching77313
Wilkin77012
Lac qui Parle73622
Big Stone5644
Lincoln5592
Grant5498
Norman5229
Mahnomen5088
Unassigned50378
Kittson46822
Red Lake3877
Traverse3605
Lake of the Woods3073
Cook1460

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 358085

Reported Deaths: 5821
CountyCasesDeaths
Polk56023604
Linn20310330
Scott19111234
Black Hawk15560306
Woodbury14906221
Johnson1405881
Dubuque13162202
Dallas1090196
Pottawattamie10763162
Story1031547
Warren555686
Clinton537790
Cerro Gordo522986
Webster508391
Sioux506673
Marshall477274
Muscatine460796
Des Moines441965
Wapello4254120
Buena Vista421940
Jasper407670
Plymouth397479
Lee368555
Marion354575
Jones293155
Henry286337
Bremer279360
Carroll279351
Crawford261840
Boone258833
Benton250355
Washington249550
Dickinson242343
Mahaska224850
Jackson218242
Kossuth213063
Clay211225
Tama206671
Delaware203039
Winneshiek194433
Page190421
Buchanan188831
Cedar184423
Fayette183041
Wright180435
Hardin179942
Hamilton178149
Harrison176473
Clayton167155
Butler162534
Mills158720
Cherokee157138
Floyd155442
Lyon154841
Madison154119
Poweshiek152733
Allamakee149151
Iowa145524
Hancock143734
Winnebago136131
Grundy135332
Cass134654
Calhoun133211
Jefferson131035
Emmet128740
Shelby128637
Sac127319
Louisa127249
Appanoose126647
Mitchell125341
Union124132
Chickasaw122615
Humboldt118326
Guthrie117929
Franklin112821
Palo Alto111022
Howard102822
Montgomery100637
Unassigned10050
Clarke98323
Keokuk94730
Monroe94128
Ida89733
Adair84532
Pocahontas83721
Monona81230
Davis79924
Greene76710
Osceola75516
Lucas74923
Worth7098
Taylor65312
Fremont6139
Decatur5899
Van Buren55518
Ringgold53623
Wayne52123
Audubon4939
Adams3284
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