On March 28th, President Trump signed the bipartisan supported relief bill, Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Here's a simple overview:
From the onset of the COVID-19 outbreak, trade and investments across the world have tumbled. Amid health services warning people to stay at home and avoid crowds, businesses across the United States have been reducing hours or closing their doors altogether. In response to growing economic panic, the US congress pulled together in a bipartisan effort to pass a $2 trillion stimulus to American businesses and families.
Senator Mitch McConnell (R-KY) introduced the CARES bill on March 19th, and within ten days, the president was signing CARES into law. This act is now the third major legislative response to COVID-19, following the Coronavirus Preparedness and Response Supplemental Appropriations Act and the Families First Coronavirus Response Act. The CPRSA Act had provided about $8 billion to both domestic and international health care and disaster response agencies, while FFCRA established a temporary expansion to both Family Medical Leave and Sick Leave for those affected by COVID-19 or the widespread school and childcare closures.
However, FFCRA puts a burden on businesses to provide extended paid leave to employees - especially burdensome to small businesses. Even though businesses were promised credits for complying, these credits could be delayed months to even a year down the line. CARES jumpstarts the business relief process by offering loans. These loans will largely be forgiven based on how much the business spent on payroll and debt costs. The act allotted about $377 billion in aid to small businesses.
Nevertheless, while CARES was passed to encourage businesses not to let go of their employees, the legislation also aids unemployment benefits. This was in response to the record high number of Americans applying for unemployment benefits - now going over 3 million. Under CARES, unemployed Americans will receive an extra $600 a week. During legislative negotiations, this addition caused a stir in the House of Representatives, since for a definite time period, some Americans would be receiving more money from unemployment benefits than they would their original income. The measure still passed.
The biggest allotment of the act, and an addition that also garnered much debate and contrevorsy, is the estimated $560 billion for individuals and families. Single Americans making under $75,000 will receive a one-time payment of $1,200, while married couples filing jointly will receive $2,400, plus an additional $500 for each child. The payments phase down past a $75,000 income, and single Americans making $99,000 or more will not receive any payment.
Overall, the CARES Act is an expansive legislation. It also provides further aid to healthcare, food programs, state and local governments, as well as bolstering airlines and putting federal student loans on hold.