Sat 28 March 2020:
President Donald Trump signed an unprecedented $2.2 trillion economic rescue package into law on Friday, after swift and near-unanimous action by Congress this week to support businesses, rush resources to overburdened health care providers and help struggling families during the deepening coronavirus epidemic.
Acting with unity and resolve unseen since the 9/11 attacks, Washington moved urgently to stem an economic free fall caused by widespread restrictions meant to slow the spread of the virus that have shuttered schools, closed businesses and brought American life in many places to a virtual standstill.
House gives near-unanimous approval
Earlier Friday, the House of Representatives gave near-unanimous approval by voice vote after an impassioned session conducted along the social distancing guidelines imposed by the crisis. Many lawmakers sped to Washington to participate — their numbers swollen after a maverick Republican signaled he’d try to force a roll call vote — though dozens of others remained safely in their home districts.
The Senate passed the bill unanimously late Wednesday.
“The American people deserve a government-wide, visionary, evidence-based response to address these threats to their lives and their livelihood and they need it now,” said House Speaker Nancy Pelosi, D-Calif.
The $2.2 trillion legislation will speed government payments of $1,200 to most Americans and increase jobless benefits for millions of people thrown out of work. Businesses big and small will get loans, grants and tax breaks. It will send unprecedented billions to states and local governments, and the nation’s all but overwhelmed health care system.
$1,200 direct payments
The legislation will give $1,200 direct payments to individuals and make way for a flood of subsidized loans, grants and tax breaks to businesses facing extinction in an economic shutdown caused as Americans self-isolate by the tens of millions. It dwarfs prior Washington responses to crises like 9/11, the 2008 financial crisis, and natural disasters.
The massive CARES Act started as a draft plan among Republicans controlling the Senate who were seeking a greater voice in the coronavirus response efforts — especially after Pelosi was a dominant force in earlier legislation imposing a sick leave mandate on businesses.
A bridge loan for economy
The bill amounts to a bridge loan for much of the economy and carries a price tag that equals half the size of the entire $4 trillion-plus annual federal budget.
The legislation also establishes a $454 billion program for guaranteed, subsidized loans to larger industries in hopes of leveraging up to $4.5 trillion in lending to distressed businesses, states, and municipalities.
There is also $150 billion devoted to the health care system, including $100 billion for grants to hospitals and other health care providers buckling under the strain of COVID-19 caseloads.
It also seeks to strengthen the safety net for the poor and homeless. Schools and students would get relief, small business loans payments would be deferred. Evictions from public housing would be put on pause.
Republicans successfully pressed for an employee retention tax credit designed to help companies keep workers on payroll. Companies would also be able to defer payment of the 6.2% Social Security payroll tax. A huge tax break for interest costs and operating losses limited by the 2017 tax overhaul was restored at a $200 billion cost in a boon for the real estate sector.
Most people who contract the new coronavirus have mild or moderate symptoms, such as fever and cough that clear up in two to three weeks. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia, or death.
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