An Overview of Recently Signed COVID-19 Legislation
What are the basics of the stimulus program signed by the President?
After months of uncertainty and mounting desperation, U.S. lawmakers have come to a final agreement regarding a second stimulus package as a result of the COVID-19 economic downturn. The agreement was reached late Sunday night on December 20, 2020, on the second-largest stimulus bill in U.S. history (the first stimulus package passed in March is holding the title of “largest stimulus bill”). The bill was signed by the President on December 27, 2020. The bill has a budget of roughly $900 billion and includes direct cash payments to qualifying individuals, enhanced unemployment benefits, a second-round Paycheck Protection Program (PPP) and small business loans, funding for schools and childcare, rental assistance, nutrition assistance, and vaccine funding.
So does that mean I’ll get another stimulus check?
On the subject of stimulus checks, the bill proposes sending qualifying individuals up to $600, half the amount provided in the first round of stimulus payments. Similar to the first stimulus payment, payments will only be sent to people below a certain income level. Although the direct payments may be less, eligible families are able to receive an additional $600 per child, which will be $100 more than Congress sent to families in the first stimulus package.
What’s missing from the bill?
Most notably, and to the chagrin of many U.S. governors, the bill fails to provide any direct aid to state and local governments. While earlier proposals hinted at a possible $160 billion in state and local assistance. Lawmakers have pointed out that while there is no direct aid, the bill helps cities by providing emergency resources for schools; $27 billion for state highways, struggling transit agencies, Amtrack, and airports; $22 billion for health-related expenses of state, local, tribal and territorial governments; and $2 billion to support intercity buses.
If you have any questions about COVID-19 legislation
or any other tax matters, reach out to a professional. The professionals at The Center for Financial, Legal, and Tax Planning are extremely knowledgeable with regards to this and additional tax laws that can lower your tax burden.