Lawmakers have spent the past several weeks negotiating a package which will boost our economy and, while most of us were sleeping last night, Senate leaders announced a bipartisan deal to the tune of $2.2 Trillion. Senate Minority Leader Chuck Schumer (D-NY) called the bipartisan agreement the “largest rescue package in American history.”
Although the deal’s language has not yet been released, the Republican Proposal (“Proposal”) presented late last week combined with indicators from Washington insiders close to the deal process gives us a pretty good idea of what to expect:
- Direct payments of $1,200 to be disbursed to individuals who earn $75,000 or less or payments of $2,400 to couples who, together, earn $150,000 or less. Parents will receive $500 for each of qualifying child.
- Smaller payments will be made to those earning up to $99,000 annually;
- Unemployment insurance is expected to increase by $600 per week and laid-off workers should receive full pay for four months;
- Billions of funding for cities, states and industries including airlines;
- $350+ Billion for emergency loan programs for small businesses;
- Billions for industries, including airlines;
- $130-$150 Billion for hospitals, nursing homes and other healthcare providers for equipment and supplies;
- Employment tax credits to finance employee sick leave; and
- Many other tax credits.
Notably, the package will include strict terms banning employers who benefit from the stimulus package from laying off their employees, from buying back stock, and from rewarding their executives. As soon as more details emerge, we will update you on how this will impact your business.