On Wednesday, Trump administration officials with the top Democrats agreed on a $2 trillion rescue package to come grips with the COVID-19 pandemic, establishing this as the most extensive economic stimulus measure in modern history.
This economic stimulus measure will authorize loans to small businesses and direct payments to taxpayers, and eventually, create a $500 million corporate bailout fund.
Soon after days of endless haggling and bickering, the Democrats broke out and struck a deal to send relief measures to workers, hospitals, and businesses impacted by the COVID-19 pandemic, and settle the economic disruption it has caused.
Here’s how the scope and the size of the largest economic stimulus package look like:
- Direct Payments To Taxpayers
The government will provide $1,200 in direct payments to taxpayers with incomes up to $75,000 per year, and families will receive an additional $500 per child, with a motive to create a safety net for those whose businesses and jobs are afflicted by the disaster.
- Unemployment Benefits
There will a significant extension of unemployment benefits, and this will extend the jobless insurance by 13 weeks with a four-month intensification of benefits.
Further, this program is broadened to include furloughed employees, freelancers, and gig workers.
- Emergency Loans for Small Businesses
Lawmakers agreed to provide federally guaranteed loans for small businesses if they pledge to keep their employees. The loans will be available till June 30 and will be forgiven if the employers continued to pay their employees in the crisis.
- Distressed Companies Can Receive Government Bailouts
The government will offer loans for distressed companies, this loan will brew from a $425 billion fund supervised by the Federal Reserve, and an additional $75 billion will be offered for industry-specific loans – including airlines and hotels.
There’s an additional provision, and this states that Trump’s family businesses, or those of any other senior government officials, cannot receive loans from the $425 billion funds. However, chances are, they can still benefit from different sections of the bill.
- Increased Medicare Payments
This section of the agreement will include $100 billion for health systems and hospitals across the United States. Additionally, this will consist of billions more to refurbish protective and personal types of equipment. Lawmakers will also increase medicare payments for all the officers and providers.