Early this morning, Republicans and Democrats in Congress, along with the White House, reached a bipartisan deal on a $2 trillion stimulus package providing relief amid the coronavirus pandemic, according to Axios. The agreement comes after several days of intense negotiating on Capitol Hill.
The proposed deal came just before 1 a.m. on Wednesday, and White House legislative affairs director Eric Ueland made the announcement.
“Ladies and gentlemen, we are done. We have a deal,” Ueland said.
The bill includes direct payments to U.S. households, increased unemployment insurance for workers who lose their jobs, loans for small businesses, and relief for hospitals.
How Much Will Households Receive?
Under the proposed bipartisan bill, single taxpayers with an adjusted gross income of up to $75,000 will receive $1,200 and $500 for each qualifying child, according to Forbes. Joint taxpayers with an adjusted gross income of $150,000 will receive $2,400 and $500 for each qualifying child. Taxpayers who make over the income levels will receive checks reduced by 5 percent of the household’s income above the thresholds that phase out entirely at $99,000 for single filers and $198,000 for joint filers.
All taxpayers will receive a check, even those with minimal tax liability. This is a change from the originally proposed Senate bill, which reduced the stimulus check for households that fell below a certain threshold. It is unclear if the checks are based on 2018 taxes or 2019 taxes since the due date for 2019 tax filing has been extended to July 15 for federal income taxes.
Additionally, taxpayers may be able to defer their 2020 payroll taxes until 2021 and 2022.
How Much Will Unemployed Workers Receive?
The proposed bill increases unemployment benefits for many workers through the end of the year. For an average unemployed worker, the weekly payment amount could increase by roughly $600, and the proposed agreement adds four months to the length of time workers can receive unemployment benefits. Notably, if the bill is signed into law, gig workers who lose their income will also be eligible to collect unemployment. The coverage is effective starting January 27, 2020.
How Much Will Small Businesses Receive?
The bill provides $367 billion to help small businesses make payroll while workers stay home during the COVID-19 pandemic. Companies that employ fewer than 500 could access as much as $10 million in loans to make payroll when many are shut down, and those loans are forgivable.
How Much Will Healthcare, Social Services, & Industry Receive?
In addition to individuals and small businesses, the proposed bill includes provisions for health care, social services, and industry.
The stimulus package provides $242 billion for health care and safety net programs, which include hospitals, the CDC, child nutrition programs, and SNAP as well as transportation agencies. Meanwhile, industry could receive access to as much as $500 billion in loans, but the final details are still under negotiation.
Both Democrats and Republicans have called the deal a win for their parties, CNN reported. Speaker of the House Nancy Pelosi said that negotiation from recent days significantly improved many of the bill’s provisions. She called for the legislation to be approved in the House of Representatives by unanimous consent.