Summary of “CARES” (Coronavirus Aid Relief & Economic Security) Act
Category: Legislative
Mar
30
Summary of “CARES” (Coronavirus Aid Relief & Economic Security) Act
Learn more about the following:
-
Relief to Citizens – Direct Income Assistance Payments
- Relief to Workers – Unemployment Insurance, Worker Training
- Small Business Assistance
- Industry Relief
- Access to testing, treatment, and prevention
- Hospitals/Health Care Capacity
- Housing, Homelessness, Food Assistance
- Assisting law enforcement, jails with coronavirus response
- Some Statewide Allocation Information
Relief to Citizens – Direct Income Assistance Payments
- $1,200 one-time payment per adult up to $75,000 annual income - $150,000 for joint filers;
- $500 additional per child;
- Rebate amount reduced by $5 for each $100 a taxpayer’s income exceeds income threshold with complete phase-out at $99,000 a year individual/$198,000 joint filers;
- Those with no reportable income included;
- Uses 2019 tax filing year as the base
Relief to Workers – Unemployment Insurance, Worker Training
- $600/week in addition to other UI benefits – totals 100% wage replacement for four (4) months;
- 13 additional weeks of unemployment benefits through Dec. 31, 2020;
- Federal funding to states to waive waiting-period weeks through Dec. 31, 2020;
- $360 million for worker training and support and implementation costs at the Department of Labor
Small Business Assistance
- $350 billion for new Paycheck Protection Program to assist small businesses and non-profits;
- Forgivable loans for eight (8) weeks of payroll, up to $10 million, to employers (including non-profits) with less than 500 employees, self-employed individuals, gig workers (this includes independent contractors, online platform workers, contract firm and on-call workers);
- Loan forgiveness reduced if a reduction in employees or pay;
- $17 billion to provide relief from SBA loan payments for six (6) months;
- $10 billion for SBA emergency grants for operating costs (up to $10,000);
- Allows deferment on the SBA’s 7(a) loan payments for 6-12 months
Industry Relief
- $500 billion in industry aid – includes $32 billion for air carrier workers, $25 billion for airlines, $10 billion for airports, $4 billion for cargo carriers, and $17 billion for businesses important to national security (I believe this includes The Boeing Co.). Conditions on aid include:
- Maintenance of at least 90% of employees as of March 24, 2020, through Sept. 30, 2020;
- U.S.-domiciled businesses with employees predominantly in the US;
- Bans stock buybacks and dividends until one (1) year after aid ends;
- No increase in executive compensation or severance pay;
- Prohibits businesses controlled by President, Cabinet, and Members of Congress or family members, from benefiting (I’m told there are potential loopholes to this one)
- Grants to non-profits and businesses with 500 to 10,000 employers – the same condition of retaining 90% of workforce with full compensation and benefits through Sept. 30, 2020;
- Those businesses receiving grants – no out-sourcing or offshoring until two years after grant/loan term;
- Must respect existing collective bargaining agreements until at least two years after grant/loan term
Access to testing, treatment, and prevention
- Requires private insurers and Medicare to cover coronavirus treatment, prevention;
- Requires Medicare to allow fills and refills of prescription drugs for up to 3-month supply during the emergency;
- $15.85 billion for health care access for veterans
Hospitals/Health Care Capacity
- $100 billion for health-care providers to cover coronavirus-related costs;
- $27 billion for the Public Health and Social Services Emergency Fund;
- $15.85 billion for health care access for veterans;
- $4.3 billion for federal, state, local public health agencies;
- $3.5 billion to expand production of vaccines, therapeutics, and diagnostics;
- Extends funding for Community Health Centers (such as HealthPoint) and $132 million in supplemental funding for these CHCs
Housing, Homelessness, Food Assistance
- $15.8 billion in added funding for Supplemental Nutritional Assistance Program (SNAP);
- $4 billion for Emergency Solutions grants to assist those who are homeless or at risk of homelessness due to coronavirus outbreak;
- $3 billion in rental assistance (NOTE: Per Congressman Heck’s office, much of this will flow through Housing Authorities for Sec. 8 assistance);
- 120-day moratorium on evictions in properties receiving any federal assistance;
- 60-day foreclosure moratorium on federally-backed mortgages and up to 180 days forbearance during an emergency;
- $50 million in housing assistance for low-income seniors;
- $15 million in housing assistance for those with disabilities
Assisting law enforcement, jails with coronavirus response
- $850 million for Byrne Justice Assistance grants for COVID-19 preparation and response, including use of PPEs (see WA figures under state-by-state)
Miscellaneous
- Student loan payments are suspended for six (6) months with no interest accrual;
- Prohibits transfers of funds for the border wall
Some Statewide Allocation Information:
- $150 billion in aid to state/local governments – WA State: $2.9 billion;
- Direct aid to cities/counties of 500,000 or more – Seattle, King County, Pierce County, Snohomish County, Spokane County -- $$ figures unknown at this time;
- $45 billion for FEMA Disaster Relief fund (do not have WA State number at this time);
- $5 billion for Community Development Block Grants (see WA state numbers below);
- Minimum Emergency Centers for Disease Control grants through Public Health Emergency Preparedness Program (PHEP) – Total $747.863 million; WA State minimum - $12.756 million;
- The federal government covers 50% of unemployment compensation costs for state, local, and tribal governments
Community Development Block Grants
- King County share -- $3.345 million
- Pierce County share -- $1.87 million
- Snohomish County share -- $1.831 million
- Non-entitlement share -- $7.733 million
Byrne Justice Grants
- Washington State Total - $16.797 million
- Amount of total to state – 60% -- $10.078 million
- Amount of total for local distribution – 40% -- $6.719 million
- Prevents exclusion of sanctuary cities from Byrne grant distributions
Federal Transit Administration – overall funding $25 billion (Transit Agencies)
- Washington State share - $695.786 million
- Estimated level anticipated for Sound Transit: $152 million
- “Urbanized area” funding -- $435.45 million
- “State of Good repair” funding -- $199.37 million
- Non-urbanized area funding -- $39.887 million
Low-Income Housing Energy Assistance Program (LIHEAP)
- National total -- $900 million
- Washington State formula share -- $11.106 million
Emergency Solutions Grants (ESG) – Addressing Homelessness
- King County -- $1.928 million
- Pierce County -- $1.817 million
- Snohomish County -- $1.829 million
- WA non-entitlement funds -- $19.498 million
Share this post: