A summary of the major provisions below:
- $1 Trillion funding for state and local governments facing budget shortfalls. Republicans argue funding will mostly help blue states who were already in economic trouble before the virus.
- More Stimulus Checks. $1,200 for individuals making less than $75,000/year and same amount for children. Plan also provides checks to people not included in the last round: adult dependents and people without a Social Security number (i.e., those in the country illegally). These rebate checks cost $290 billion in the CARES Act.
- Extend enhanced unemployment benefits until January, 2021. Plan extends deadline (currently set to expire at the end of July) for the additional $600 per week of Federal benefits and expands eligibility for unemployment insurance (UI). Expanded UI cost ~$260 billion in the CARES Act. Also included, an increase in funding for food stamps.
- “Heroes’ Fund”. $200 billion in funding for “essential workers” to receive hazard pay in the form of grants to “essential employers” to pay to wages. While admirable to appreciate the efforts of essential workers, they continued to earn wages during the lockdown, so its questionable as to how effective this aid might be and whether, if at all, it should go to employers to pay wages or support those who were unable to work.
- Hospitals. $100 billion for hospitals including grants for hospitals and healthcare providers.
- COVID Testing and Tracing. $75 billion for COVID testing and tracing.
- Mortgage & Rent Relief. (i) $75 billion in mortgage relief, and (ii) $100 billion for renter assistance.
- US Postal Service (USPS). $25 billion for USPS which may run out of funding by September without intervention. Republicans seeking a revamping of the agency first.
- Federal Medical Assistance Percentage Payments. (i) Increase Federal Medical Assistance Percentage payments by 14% through June, 2021, (ii) Eliminate cost sharing for Medicaid and Medicare beneficiaries for COVID treatment and vaccines.
- Tax Provisions. (i) Raise Child Tax Credit, (ii) Increase the Earned Income Tax Credit, and (iii) Eliminate $10,000 cap on State and Local Tax (SALT) deductions.