South Carolina will receive billions of dollars in federal aid and stimulus checks after President Joe Biden signed the $ 1.9 trillion COVID-19 relief law on March 12.
Although the state of Palmetto has received substantially less than states like California, Texas and New York, the historic aid package offers financial relief to students in South Carolina, unemployed workers and most residents.
Here is an analysis of how much money is pouring into South Carolina and how it can affect you.
How did the South Carolina Congressional delegation vote on the relief bill?
None of South Carolina’s Republicans in the House or Senate voted in favor of the $ 1.9 trillion aid bill. US Representative Jim Clyburn, the only Democrat representing Palmetto State in Washington, voted in favor of the aid package.
While most Republicans were quick to report it as reckless government spending, despite supporting ex-President Donald Trump’s $ 900 billion COVID-19 relief package just a few months earlier, Democrats like Clyburn saw it as a piece of historical legislation.
“This to me is as transformative as anything I’ve seen since I was here,” Clyburn told NBC as he discussed this government’s third COVID relief bill.
Does the bill offer loan forgiveness for South Carolina students?
Student loan debt is not wiped out by Biden’s stimulus plan.
However, a clause that made pardoning the student loan tax free was included by the Democrats. If Biden canceled the student’s debt in the future, the amount would not be taxed by the government.
Under current law, any student loan debt canceled by the government is taxed in the borrower’s normal income range. The exemption covers all federal student loans held by the government and private student loans until 2025.
Democrats believe it paves the way for Biden, who has played at eliminating between $ 50,000 and $ 10,000 in education debt, to address the issue later in his presidency.
There are about 686,800 student loan borrowers in South Carolina, according to EducationData.org.
Will I receive a stimulus check and, if so, when?
South Carolina residents earning less than $ 75,000 and married couples under $ 150,000 would receive direct payments of $ 1,400 per person and $ 1,400 per dependent.
Stimulus checks are expected to reach bank accounts this weekend.
Does the bill provide for continued unemployment benefits?
The package maintains the existing $ 300 weekly unemployment insurance until September 6 and also offers a tax reduction of $ 10,000 in assistance payments.
How much money will be given to South Carolina?
The Senate package earns $ 350 billion to states, cities, tribal governments and U.S. territories.
About $ 3.8 billion, or just over 1%, of that money will go to South Carolina, according to the National Conference of State Legislatures.
Cities and counties in the state will share $ 1.6 billion of that total.
State and local government recipients can use the funds to cover costs incurred up to December 31, 2024. The money would be distributed in two parts, with 50 percent delivered within a maximum of 60 days from the enactment of the law, and the remainder delivered not earlier than a year later.
State and local governments cannot use the money for pensions or to offset the revenue resulting from a tax cut enacted since March 3, 2021.
State and local governments can transfer funds to private nonprofit groups, public benefit corporations involved in the transportation of passengers or cargo, and special purpose units from state or local governments.
All municipalities will receive population-based funds through the most recent financial relief measure, although the funding comes from two separate buckets of money, some for metropolitan cities and others for smaller cities.
Richland County will receive $ 80 million, Charleston County is expected to earn $ 79.8 million and Horry County will receive $ 68.7 million.
The cities of Mount Pleasant, Columbia and Charleston will receive the maximum with US $ 34 million, US $ 26 million and US $ 20.7 million.
All the money will come from the state government.
Catch up Thomas Novelly at 843-937-5713. Follow him @TomNovelly on Twitter.