WASHINGTON (AP) – The Senate passed a comprehensive pandemic relief package on the Republican opposition on Saturday, bringing President Joe Biden closer to a historic political victory that would provide checks for $ 1,400 for most Americans and direct billions of dollars for schools, state and local governments and companies.
The bill passed a 50-49 party vote after an overnight voting marathon and now returns to the House for final approval, which may take place early next week.
Democrats said their “American Rescue Plan” would help the country defeat the virus and restore the economy to health. Republicans criticized the $ 1.9 trillion package as more expensive than necessary. The move follows five previous virus projects, totaling about $ 4 trillion, which Congress has approved since last spring.
A look at some highlights of the legislation:
HELP FOR THE UNEMPLOYED
The federal government’s expanded unemployment benefits would be extended until September 6 at $ 300 a week. This is in addition to what beneficiaries are receiving through their state unemployment insurance program. The first $ 10,200 of unemployment benefits would not be taxable for families with an income below $ 150,000.
In addition, the measures provide a 100% subsidy for COBRA health insurance premiums to ensure that dismissed workers can remain on their employers’ health plans at no cost until the end of September.
MORE CHECKS
The legislation provides for a direct payment of $ 1,400 for a single contributor, or $ 2,800 for a couple who enroll together, plus $ 1,400 per dependent. Individuals earning up to $ 75,000 will receive the full amount, as will couples with incomes up to $ 150,000.
The size of the check would decrease for those earning a little more, with a forced cut of $ 80,000 for individuals and $ 160,000 for couples.
Most Americans will receive the full amount. The average family income was $ 68,703 in 2019, according to the US Census Bureau.
MONEY FOR THE STATE AND LOCAL GOVERNMENTS
The legislation would send $ 350 billion to state and local governments and tribal governments for costs incurred by the end of 2024. The bill also requires small states to receive at least the amount they received under the virus legislation that Congress passed last March. .
Many communities suffered a blow to their tax base during the pandemic, but the impact varies from state to state and from city to city. Critics say the funding is not properly targeted and is much more than necessary, with billions of dollars allocated last spring to states and communities that have not yet been spent.
SCHOOL HELP
The project calls for about $ 130 billion in additional school aid for students from kindergarten through 12th grade. The money would be used to reduce class sizes and modify classrooms to increase social distance, install ventilation systems and purchase personal protective equipment. The money could also be used to increase the hiring of nurses and counselors and to provide summer school.
College and university spending would be increased by about $ 40 billion, with money used to defray an institution’s pandemic-related expenses and to provide emergency aid to students to cover expenses such as food, housing and computer equipment.
AID TO COMPANIES
A new program for restaurants and bars hit by the pandemic would receive $ 25 billion. Concessions provide up to $ 10 million per company, with a limit of $ 5 million per physical location. Grants can be used to cover payroll, rent, utilities and other operating expenses.
The bill also provides $ 7.25 billion for the Check Protection Program, a small fraction of what was allocated in previous legislation. The bill also allows more nonprofits to apply for loans to help borrowers meet their operating and payroll costs and can potentially be forgiven.
TESTING AND VACCINES
The project provides for $ 46 billion to expand federal, state and local testing for COVID-19 and to improve contract tracking capabilities with new investments to expand laboratory capacity and set up mobile test units. It also contains about $ 14 billion to accelerate the distribution and administration of COVID-19 vaccines across the country.
HEALTH CARE
Parts of the legislation promote long-standing democratic priorities, such as increasing the coverage of the Obama-era Affordable Care Act. Financial assistance for ACA awards would become considerably more generous and more solid middle-class families would qualify. Although the increased subsidies will only last until the end of 2022, they will reduce the cost of coverage and are expected to increase the number of people enrolled.
The measure also distributes more money in front of a dozen states, mainly in the South, that have not yet taken on the expansion of Medicaid that is available under the ACA to cover more low-income adults. Whether such a sweetener would be enough to start eroding long-standing Republican opposition to the expansion of Medicaid is uncertain.
LARGER TAX BREAKS FOR FAMILIES WITH AND WITHOUT CHILDREN
Under current law, most taxpayers can reduce their federal income tax account by up to $ 2,000 per child. In a significant change, the project would increase the tax reduction to $ 3,000 for each child aged 6 to 17 and $ 3,600 for each child under the age of 6.
Legislation also requires payments to be made monthly, rather than in a lump sum. If the Treasury Secretary determines that this is not feasible, payments should be made as often as possible.
Families would receive full credit, regardless of how little they earned in a year, leading to criticism that the changes would serve as a disincentive to work. Add the $ 1,400 checks and other items in the proposal, and the legislation would cut the number of children living in poverty by more than half, according to Columbia University’s Center for Poverty and Social Policy.
The law also significantly expands the Earned Income Tax Credit to 2021, making it available to people without children. Low and moderate income adult credit would be worth $ 543 to $ 1,502, depending on the income and status of the process.
OWNER RENTAL AND ASSISTANCE
The project provides for about $ 30 billion to help low-income families and the unemployed to pay rent and utilities, and to help homeless people with vouchers and other assistance. States and tribes would receive an additional $ 10 billion for homeowners who are struggling with mortgage payments because of the pandemic.