A new $3 trillion stimulus package unveiled by House Democrats is designed to help Americans still out of work due to the economic shutdown brought about to fight the spread of the coronavirus.
The bill provides for another round of stimulus payments, aid for state and local governments, help for schools, expanded unemployment insurance benefits, and additional nutrition assistance.
“The coronavirus pandemic requires a response from Congress that meets the challenge this public health crisis poses,” said Rep. Frank Pallone Jr., D-6th Dist., one of the bill’s lead sponsors.
This won’t be the final legislation that reaches the president’s desk, but is the opening round of negotiations among the White House, House Democrats and Senate Republicans.
So far, both President Donald Trump and Senate Majority Leader Mitch McConnell, R-Ky., have been reticent to support more aid to state and local governments and more financial assistance to the unemployed.
McConnell instead said he wants to make it harder to sue businesses. Trump has pushed for a payroll tax cut.
“I certainly won’t condition any future legislation on a certain proposal, but I will say that the president has noted a payroll tax is something that he’s looked at,” White House spokeswoman Kayleigh McEnany said Tuesday.
CORONAVIRUS RESOURCES: Live map tracker | Newsletter | Homepage
Here’s what’s in the proposed bill:
Another round of stimulus payments for nearly everyone. Most Americans would receive $1,200 checks ($2,400 for a married couple), plus $1,200 for each child up to a maximum of $6,000 per household. As in the first round, the payments start phasing out at $75,000 of modified adjusted gross income for individuals and $150,000 for couples filing jointly.
The payments would not be adjusted for regional cost-of-living differences.
In addition, dependents over the age of 17, including full-time students below age 24, retroactively would be eligible for $500 payments from the original stimulus bill that they previously could not get.
Expanded unemployment payments. The extra $600 a week in federal unemployment insurance, now planned to expire July 31, would continue through Jan. 31, 2021. Individuals still receiving state unemployment benefits after then would get the extra $600 through March 31.
For those whose state benefits run out but were still unemployed, the federal government would provide 13 more weeks of unemployment insurance benefits through March 31, 2021.
Income tax break on state and local taxes. The legislation would suspend for two years the $10,000 cap on deducting state and local income, property and sales taxes, which Trump and congressional Republicans put in their 2017 tax law.
State governments. There would be $500 billion to help states pay their bills since they’ve shut down their economies to stop the spread of the coronavirus. The formulas for allocating the money take into account states hardest hit by the coronavirus and those with large numbers of unemployed workers. New Jersey would get $16.7 billion. Without such aid, Gov. Phil Murphy, thousands of public workers would be laid off.
“For months now, we have been calling on the federal government to provide much-needed relief to state governments,” said Murphy, adding that the legislation “is critical to ensuring that our police officers, educators, firefighters, EMTs, first responders, and other essential government workers are able to remain on the job and continue saving lives.”
The states could use the money to pay for coronavirus-related expenses, to replace lost revenues or to make up for negative economic impacts caused by the pandemic.
Local governments. Counties, cities and other municipal governments would get $375 billion, with $11.3 billion for New Jersey. Some of the funds would be distributed to more rural counties left out of the original stimulus allocations under a formula dating back to President Gerald Ford.
Small businesses. The Economic Injury Disaster Loan program would get another $10 billion to provide emergency grants to small businesses.
Nutrition assistance. The Supplemental Nutrition Assistance Program, formerly food stamps, would receive $10 billion; the Women, Infants and Children program would get $1.1 billion; and child nutrition programs would get $3 billion. The bill also contains $150 million to help local food banks.
Fisheries. Commercial fisheries and charter operators hurt by the economic shutdown would be among those eligible for $100 million in aid.
Vote by mail. States would receive $3.6 billion to hep them prepare for the 2020 elections, including expanding the use of absentee ballots.
Public transit. With a sharp loss of revenue since riders are staying home rather than going to work, transit agencies would receive $15.8 billion.
Health providers. There would be $100 billion for health care providers.
Education grants. There is $190 billion to help states fund education, as well as for school districts, colleges and universities.
Internet access. Low-income families and those who have been laid off or furloughed would get payments of up to $50 a month to help pay for internet access. Because schools are closed and students are learning remotely, the legislation also includes $1.5 billion for schools and libraries to buy equipment and set up wifi hot spots.
Heating bills. The legislation would include $1.5 billion for the Low-Income Home Energy Assistance Program.
Amtrak. All passengers and employees would be required to wear masks.
First responders. Police officers, firefighters, emergency medical technicians and other first responders who die after contracting COVID-19 will be eligible for federal death benefits without first having to prove that they were infected while on the job. Legislation to automatically provide the benefits had been introduced by U.S. Sen. Cory Booker, D-N.J., and Rep. Bill Pascrell Jr., D-9th Dist.
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Jonathan D. Salant may be reached at [email protected].
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