Coronavirus Aid, Relief, and Economic Security (CARES) Act

The CARES Act contains numerous provisions to help workers, families, and businesses, including unemployment insurance benefits and loan guarantee programs. In response to the Coronavirus (COVID-19) Pandemic, Congress passed the Phase 3 economic relief legislation, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which was signed into law on March 27, 2020.

Does welfare help the economy?

Accordingly welfare tends to diminish both self-sufficiency, since it leads more people to accept unemployment, and production, since the productive potential of those people is not turned into goods. The effect may not be a large one, but it is something to consider.

Billion in loans for corporations, and $339.8 billion to state and local governments. Public transit operators, Amtrak, other commuter rail operators, airlines and airports were provided with liquidity measures to cover eligible capital, operating, and other expenses generally eligible under those programs to prevent, prepare for, and respond to COVID-19. In total, the Treasury Department is responsible for managing over $1 trillion in American Rescue Plan programs and tax credits. Read about the impact of the first six months of the American Rescue Plan programs in the impact report. Small Business Grant Program Distributed more than $4M in direct financial support to Oakland-based small businesses.

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It extended unemployment assistance and subsidized payroll for affected small businesses. The U.S. Congress passed a $2.2 trillion stimulus bill called the Coronavirus Aid, Relief, and Economic Security Act in March 2020 to blunt the economic damage set in motion by the global coronavirus pandemic.

This credit did not apply to businesses that received Small Business Interruption loans. The principal of the loan could be forgiven up to the total cost of payroll, mortgage interest payments, rent, utility payments, and any additional wages paid to tipped employees made during the eight-week period after origination. However, under PPP, this amount would be reduced by the proportion of any reduction in the average number of employees during that period.

CARES Act Coronavirus Relief Fund frequently asked questions

Not less than $100,000,000 for noncompetitive grants, contracts or cooperative agreements to public entities to enable such entities to address emergency substance abuse or mental health needs in local communities. Toxic Substances and Environmental Public Health$12,500,000To remain available until Sept. 30, 2021TITLE VIIIDepartment of Health & Human Services Centers for Disease Control and Prevention For an additional amount for “CDC-Wide Activities and Program Support” to prevent, prepare for, and respond to coronavirus, domestically or internationally. Indian Health Services$1,032,000,000To remain available until Sept. 30, 2021Agency for Toxic Substances and Disease Registry For an additional amount for “Toxic Substances and Environmental Public Health” to prevent, prepare for, and respond to coronavirus, domestically or internationally. Not later than 30 days after the date of enactment of this Act, the Committee shall establish and maintain a user-friendly, public-facing website. SNAP$15,810,000,000To remain available until Sept. 30, 2021For an additional amount for the ‘‘Commodity Assistance Program’’ for The Emergency Food Assistance Program to prevent, prepare for, and respond to coronavirus, domestically or internationally. The vast majority of the funding was administered through Federal Reserve emergency lending facilities that the Fed had rolled out.

Representative Thomas Massie, a Republican from Kentucky, attempted to maneuver for a roll-call vote, but the quorum present did not support the idea. Massie’s threat to demand a recorded vote nonetheless „compelled dozens, if not hundreds, Coronavirus Aid, Relief, and Economic Security (CARES) Act of lawmakers to return to Capitol Hill from their home districts, navigating across interstates and through airports at a time when public health officials have urged Americans to avoid nonessential travel and gathering in large groups“.

Specific Program Information

These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

The report added that „agencies have made only limited progress so far in achieving transparency and accountability goals.“ The legislation required the creation of a Pandemic Response Accountability Committee. On March 30, the inspectors general selected Glenn Fine, who had been an inspector general in four presidential administrations and who was serving as acting Pentagon inspector general, to chair the committee. One week later, Trump removed Fine from his position as acting Pentagon inspector general, making him ineligible to chair the committee. Payments of student loan principal and interest of by an employer to either an employee or a lender is not taxable to the employee if paid between March 27, 2020, and December 31, 2020. Pandemic Unemployment Assistance , a type of unemployment insurance with broader eligibility guidelines, including any individual who is out of work due to the pandemic, including formerly self-employed, contract, and gig workers.

Other Government Sites

Almost $1 billion for the National Institutes of Health to support research, including research on coronavirus and developing countermeasures to prevent and treat COVID-19 disease. More than $1 billion for the Indian Health Service to prevent, prepare for, and respond to coronavirus. $80 million for a Pandemic Response Accountability Committee to promote transparency and conduct and support oversight of funds. Pandemic Unemployment Assistance temporarily expanded unemployment insurance to freelancers, independent contractors, and the self-employed.

Establishes liability protections for health care professionals who provide volunteer health care services during the COVID-19 emergency, if the professional is providing health care services that are within the scope of their license, registration, or certification in response to the COVID-19 emergency. Provides economic assistance to health care providers who are on the front lines treating patients with COVID-19 by temporarily suspending automatic Medicare sequestration payment cuts. These cuts would have reduced payments to providers by 2%, from May 1 through December 31, 2020. The Committee may hold public hearings, and Committee personnel may conduct necessary inquiries. “Coronavirus response” here means the federal government’s response to the nationwide public health emergency declared by the HHS Secretary, retroactive to Jan. 27, 2020, as a result of confirmed cases of the novel coronavirus – COVID-19 – in the U.S.

Billion State and Local Government Relief

The plan dramatically expanded eligibility for unemployment benefits just as new unemployment claims were skyrocketing. Nearly everyone but remote online workers and those already on paid leave were eligible.

Increases the tax deduction for net operating losses from 80% to 100%, for 2018, 2019, and 2020. Allows net operating losses from 2018, 2019, and 2020 to be carried back to up to five years, resulting in retroactive tax refunds. Authorizes the Food and Drug Administration to approve rule changes for over-the counter drugs without full advanced public notice and public comments. On March 20, Goldman Sachs predicted the U.S. gross domestic product would „decline by 24% in the second quarter of 2020 because of the coronavirus pandemic“. Deutsche Bank predicted the U.S. economy would shrink by 12.9% in the second quarter of 2020.

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