What a $2 Trillion Bailout Buys - Provided It Passes
“If it’s a radical notion that people’s lives are more important than corporate bailouts, call me radical.” --Massachusetts Congresswoman Ayanna Pressley
Late on Tuesday night negotiators announced a bi-partisan deal on the substance of a $2 trillion appropriation aimed at mitigating the economic impact of the current COVID-19 pandemic. It’s titled: S. 3548 The Coronavirus Aid, Relief, and Economic Security Act.
By midday on Wednesday, the 271 page text of the bill was released. While few if any in the legislative branch will ever read the actual shopping list, we have been assured that it will pass the Senate shortly and --if Speaker Nancy Pelosi has her way-- the House of Representatives will adopt the bill by unanimous consent on Thursday.
I’m willing to go out on a limb and say Madam Speaker won’t get her way, and that House members will be flying from all over the country for a roll call vote. So, maybe, we’ll see something by the weekend.
In the meantime, critics will be picking the proposal apart. We already know that it includes bailout money for Boeing, and the $1200 per person not-so-funny money amounts to a drop in the bucket.
The unemployment on steroids (an additional $600 per week) part of this legislation is significant, even if it only lasts four months. The deal also includes $400 million towards making more voting by mail possible.
Aaaaand Republicans are not happy:
https://twitter.com/jaketapper/status/1242868816876638210?s=20
From Union-Tribune coverage:
House members have not returned from their scheduled recess, and remote voting is not allowed under House rules. House Speaker Nancy Pelosi (D-San Francisco) indicated Tuesday that the fastest way for the House to approve the Senate bill would be by unanimous consent, a tactic generally reserved for small, noncontroversial legislation. It requires the consent of all current 430 House members, meaning a single representative could object, as long as he or she is on the floor to do so.
If that happens, Pelosi said she would probably need to call back the entire chamber for an in-person vote, a more time-consuming process that would also raise health risks and logistical challenges for members. It could also lead to potential changes to the legislation that would have to be reconciled with the Senate.
Meanwhile, the Senate plans to recess later this week until April 20.
The five major planks contained in this legislation are:
Direct payments to taxpayers: $1,200 in direct payments to taxpayers with incomes up to $75,000 per year before starting to phase out and ending altogether for those earning more than $99,000. Families would receive an additional $500 per child.
Unemployment benefits will increase, and more people will be eligible: extended jobless insurance by 13 weeks, and a four-month enhancement of benefits at $600 a week. The program now includes freelancers, furloughed employees and gig workers, such as Uber drivers.
Emergency loans to small businesses, provided they keep their workers: Federally guaranteed loans will be available at community banks during an emergency period ending June 30, and would be forgiven if the employer continued to pay workers for the duration of the crisis.
Bailouts for distressed companies -- with strings attached: The money will come from a $425 billion fund controlled by the Federal Reserve, with an additional $75 billion available for industry-specific loans — including to airlines and hotels.
Help for hospitals: The agreement includes $100 billion for hospitals and health systems across the nation. Billions more are available to to furnish personal and protective equipment for health care workers, testing supplies, and new construction to house patients. Medicare payments were increased for all hospitals and providers.
Roughly $340 billion is allocated to supplemental monies for government agencies acting as agents and facilitators for the stimulus. (This link will take you to the PDF for specifics)
$34.9 billion - Agriculture, Rural Development, Food & Drug Administration, and Related Agencies
$3.07 billion - Commerce, Justice, Science, and Related Agencies
$10.5 billion - Department of Defense
$221.4 million - Energy and Water Development
$1.82 billion - Financial Services and General Government
$45.9 billion - Homeland Security
$2.04 billion - Interior, Environment, and Related Agencies
$172.1 billion - Labor, Health and Human Services, Education,and Related Agencies
$93.1 million - Legislative Branch
$19.6 billion - Military Construction, Veterans Affairs, and Related Agencies
$1.115 billion - State, Foreign Operations, and Related Programs
$48.4 billion - Transportation, Housing and Urban Development, and Related Agencies
And in the meantime….
https://twitter.com/TheRynheart/status/1242874746661986304?s=20
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