Congress has funneled trillions to coronavirus relief efforts. Where is that money going?

Congress has funneled trillions to coronavirus relief efforts. Where is that money going?

Congress has funneled trillions to coronavirus relief efforts. Where is that money going?

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Over the course of two months, Congress has thrown close to $3 trillion at stanching the economic blood-flow of the coronavirus pandemic — but with the job losses mounting, and the country mired in the worst downturn since the Great Depression, some lawmakers contend it’s not enough.

Even with the unprecedented injection of aid, the jobless rate in April hit 14.7 percent, the highest on record since the Great Depression. In the seven weeks since the nation's economy came to a near standstill, more than 33 million Americans have filed for first-time unemployment benefits, meaning the jobless rate will ly continue to climb in May.

Economists have forecast a sharp contraction in GDP in the second quarter, including Federal Reserve Chairman Jerome Powell, who acknowledged that there may be an “unprecedented” drop in the second quarter.

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On Tuesday, House Democrats unveiled a fifth stimulus package calling for more than $3 trillion in spending, with $1 trillion set aside for states and cities; so-called hazard pay for essential workers on the frontline of the virus outbreak; and another round of one-time $1,200 payments to individuals.

But Republicans are wary of another round of aid — the federal budget deficit could nearly quadruple this year, hitting $3.7 trillion, according to the Congressional Budget Office — with some suggesting they’d to see how the existing $3 trillion trickles through the economy before shoveling more cash at the crisis.

“We just want to make sure that before we jump back in and spend another few trillion of taxpayers’ money that we do it carefully,” Treasury Secretary Steven Mnuchin said during an interview on “Fox News Sunday.”

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Here’s a guide to where the stimulus money already signed into law by President Trump is going:

First relief bill: $8 billion 

At the beginning of March, Trump signed a bipartisan $8 billion deal to provide emergency funding to fight the outbreak of the virus. The bill included about $7.7 billion in discretionary spending to help vaccine development, research, equipment stockpiles and state and local health budgets.

Under the agreement, more than $2 billion would be allocated to the Centers for Disease Control and Prevention, and more than $3 billion would go toward a public health emergency fund and the National Institutes of Health Research. About $1.25 billion would be provided to help protect Americans living abroad.

Second relief bill: $192 billion 

In mid-March, lawmakers passed a bill to provide free testing for COVID-19, as well as extend paid sick and family leave; strengthen unemployment insurance; and increase food aid to alleviate the financial burden on some American families.

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At the time, the government did not specify how much the legislation — known as the Families First Coronavirus Response Act — would cost. However, the Congressional Budget Office has estimated that it would add $192 billion to the federal deficit over the next decade.

The legislation created temporary coronavirus-related sick leave benefits paid by employers with fewer than 500 workers. Workers with the virus would receive their full wages if they were self-quarantining, or two-thirds of their pay when caring for a sick family member. It also provided $1.3 billion in emergency food funding.

Third relief bill (CARES Act): $2.2 trillion 

The biggest relief package ever passed in the U.S., the CARES Act shoveled cash toward all parts of the U.S. economy to counter the paralysis on activity, a result of stay-at-home measures adopted to mitigate the spread of the virus.

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Most notably, the bill expanded unemployment benefits by $600 per week through July 31; sent a one-time payment of up to $1,200 for Americans earning less than $99,000; and established the Paycheck Protection Program.

Here’s a rough breakdown of the funding in the more than $2 trillion bill:

  • Expanding unemployment benefits and broadening which Americans are eligible to receive the cash: $268 billion 
  • Economic impact payments (cash checks for Americans): $293 billion 
  • Provides small business loans and grants, including setting up the Paycheck Protection Program, which offered forgivable loans of up to $10 million for businesses with fewer than 500 workers: $377 billion 
  • Support loans and loan guarantees for large businesses: $510 billion 
  • Assistance for state and local governments: $150 billion
  • Increase health-related spending, including money for hospitals: $153 billion
  • Support the safety net, such as increasing food stamps and funding for child nutrition programs: $42 billion 
  • Disaster assistance (expanding FEMA disaster assistance fund): $45 billion 
  • Increase education spending: $40 billion 
  • Support transportation providers and industries: $71 billion 
  • Reduce individual taxes, including loosening the cap on deductibility of charitable giving; providing temporary deduction for up to $300 of charitable donations; allow up to $100,000 to be withdrawn from retirement accounts penalty-free: $20 billion
  • Cut business taxes: $241 billion

Fourth relief bill: $484 billion

The most recent bill signed by Trump in April to blunt the economic pain from the virus included $310 billion to replenish the Paycheck Protection Program (which exhausted its initial $349 billion in funding within 13 days); $60 billion for the Small Business Administration disaster assistance loans and grants; $75 billion for hospitals struggling to cover costs; and $25 billion to ramp up testing efforts.

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Источник: https://www.foxbusiness.com/money/congress-has-funneled-trillions-to-coronavirus-relief-efforts-where-is-that-money-going

How the $1.9 trillion federal coronavirus aid bill will affect Colorado and Coloradans

Congress has funneled trillions to coronavirus relief efforts. Where is that money going?

(UPDATE: The bill was signed by President Joe Biden on Thursday, March 11, 2021.)

President Joe Biden is expected to sign into law a wide-ranging, $1.9 trillion coronavirus economic aid bill this week after it clears Congress.

Colorado and Coloradans would be dramatically affected by the measure, called the American Rescue Plan, which does everything from sending $1,400 direct payments to many people to expanding the child tax credit.

Extra unemployment would be extended for the tens of thousands of Coloradans who are still receiving jobless aid under the bill, and the health insurance safety net is temporarily expanded. Billions of dollars would be funneled to the state — and counties and cities, as well. 

It’s hard to tally exactly how much money Colorado would receive, but it’s easily in excess of $14 billion. 

The relief bill has the support of all six Democrats in the state’s congressional delegation, but was rejected by the three Republican members. Every GOP member of the U.S. Senate also voted against the bill.

  “We should complete a full audit on where all COVID funds that have been allocated so far have gone before we give out another $1.9 trillion under the guise of COVID relief,” U.S. Rep.

Lauren Boebert, R-Garfield County, said. 

U.S. Sen. John Hickenlooper, D-Colorado, said the legislation did leave some things to be desired, but he thinks it will provide optimism for Americans and help the country power through to the end of the pandemic.

 “I hope that this relief package is going to satisfy the needs of the country,” he said. “Of course it’s not perfect. Nothing ever is.” 

The Colorado Sun combed through the bill to break out the specific ways in which our state would benefit. Here’s what we found: 

The U.S. Capitol in Washington, D.C. (Mark Harden, The Colorado Sun)

$1,400 direct payments 

The American Rescue Plan would send $1,400 checks directly to people making less than $75,000 a year and married couples making under $150,000 a year. People with dependents would also receive $1,400 per dependent.

Individuals making up to $80,000 annually would receive a smaller direct payment. The same is true for married couples making between $150,000 and $160,000.

If you are an individual making more than $80,000 a year or a married couple making more than $160,000, you will not receive a payment. The amount is a person’s most recent tax return.

The aim is to ensure people receive up to $2,000 in direct payments (assuming they don’t also have dependents) by building off the $600 per person payment approved by Congress in December.

Hickenlooper’s office says 82% of Coloradans are expected to receive checks, or 4.7 million people, for a total of more than $6 billion.

CBS News says the checks would be sent out within days of Biden signing the bill into law. You can check on your payment at this site.

Extra unemployment aid now runs through Sept. 6

Federal unemployment aid is set to end this weekend, which means more than 200,000 Coloradans could lose their weekly benefits. But the American Rescue Plan would reinstate it for another 25 weeks through Sept. 6.

Despite it taking weeks for the Colorado Department of Labor and Employment to update its computer system to handle congressional aid changes, it says there won’t be a gap in benefits with the American Rescue Plan.

The agency initially warned there could a weeks-long pause in people receiving unemployment aid once again, but on Wednesday evening it changed its messaging.

Lenore Knox sits at the computer looking for potential jobs online from her home in Boulder. She left her job when her hours were cut by half. Now her 8-year-old twin boys, Henry and Tucker, are only in school for 3 hours a day, which makes it difficult to have time to find a job or even go to an interview. (John Leyba, Special to the Colorado Sun)

In addition, the measure would help out-of-work Americans who face tax bills on unemployment benefits received last year by making the first $10,200 in jobless aid they receive tax-free for those earning less than $150,000.

More than $2 billion for education, childcare in Colorado

The American Rescue Plan would send more than $2 billion to Colorado to help child care centers, aid K-12 schools and replenish higher education institutions’ coffers.

Here’s the breakdown:

  • $466 million to Colorado child care centers, aimed at helping providers keep their doors open and reduce costs for families
  • $11.1 million for Head Start, a federal program that promotes the school readiness of infants, toddlers and preschool-aged children from low-income families
  • $1.2 billion for K-12 schools in Colorado, including to help them safely reopen for in-person learning 
  • $496 million for higher education institutions in Colorado, at least half of which must be distributed to students in the form of emergency grants to prevent hunger, homelessness and other hardships caused by COVID-19

$4 billion for state government, $2 billion for Colorado counties and municipalities

Colorado’s state coffers, as well as county and city budgets, would also benefit from the aid package. 

Hickenlooper’s office says about $4 billion billion would go toward the state government, while roughly $2 billion would be distributed to local governments. There aren’t many strings attached to how the dollars are spent.

“There are some limitations,” Hickenlooper said, “but I would say it’s broadly permissive.”

Here’s the breakdown in payments for some Colorado cities and counties, per U.S. Rep. Joe Neguse’s office:

  • $287 million for Denver
  • $113 million for Jefferson County
  • $77 million for Colorado Springs
  • $2 million for Alamosa
  • $1.5 million for Aspen
  • $1 million for Brush

The numbers above are estimates from the state’s congressional delegation and could vary.

(State lawmakers are also set to work with Gov. Jared Polis on a state-level aid package.)

Expanding the child tax credit 

The American Rescue Plan would establish a year-long guaranteed income stream for families through an expansion of the Child Tax Credit.

This has long been a goal of Colorado’s U.S. Sen. Michael Bennet, who with other Democrats hopes to make the change permanent. “More than 10 million children are going to be lifted poverty, over half of African American children who are living in poverty would be lifted poverty,” Bennet said on MSNBC.

90% of American children will benefit from the American Family Act that the Senate passed this past Saturday. I joined @TheRevAl on @MSNBC to talk more about this bill I've been fighting to pass since 2015. pic..com/pzwXbFv3E7

— Michael Bennet (@MichaelBennet) March 9, 2021

The way the change works is a bit complicated, but essentially families could receive up to $3,600 for children ages 5 and under and up to $3,000 for all other children up to age 17. Though it’s a tax credit, the money is slated to be sent out before people traditionally receive returns and people can get paid even if they have no tax bill. 

To be eligible for the full benefit, a married couple would have to have an adjusted gross income of $150,000 or less. A head of household with an adjusted gross income of up to $112,500 and single filers who make up to $75,000 would be fully eligible. 

The credit diminishes for people making more money, ending for married couples who have an adjusted gross income of $400,000 and single people who make $200,000. 

The New York Times reports that “more than 93% of children — 69 million — would receive benefits under the plan, at a one-year cost of more than $100 billion.”  Studies show childhood poverty would be slashed by the proposal, though critics say it expands the welfare state.

Coloradans who lose their workplace health insurance would have a bigger safety net

The rescue plan significantly expands the health care safety net for Coloradans who lose workplace health insurance in 2021 through big boosts to subsidies on the Connect for Health Colorado insurance exchange and federal COBRA benefits. 

For example, the American Rescue Plan says anyone who receives any unemployment benefits in 2021 can get a “silver” or mid-level insurance plan on the exchange while paying zero premium.

Families cut off from premium subsidies when their income reaches 400% of the poverty level would now be eligible for support, and no exchange buyer would have to pay more than 8.5% of their family income on premiums.

Individuals who make less than 150% of the federal poverty level would pay no premium on the exchange. 

The website for Connect for Health Colorado, the state’s health insurance exchange, shown in October 2018. (Eric Lubbers, The Colorado Sun)

COBRA, meant as a stopgap for people leaving employer insurance but long maligned for its high cost, would also be expanded. Former employees can extend their workplace coverage through Sept. 30 without paying the premium, rather than the former plan that had them paying 100% or more. 

The legislation would also set aside billions of dollars for vaccine distribution efforts, as well as money to scale up COVID-19 testing, contact tracing and disease surveillance.

“Obviously the most important thing is that we have enough vaccine and that we have the resources so that we can vaccinate everyone who is willing to be vaccinated,” Hickenlooper said.  

Renters would get help, too

The federal relief bill also set aside $26 billion to help people with rent and utilities. That would include $5 billion for emergency vouchers for those at risk of homelessness or domestic abuse. Funding would also target certain communities, with $100 million going toward rural housing and $750 million set aside for Native American housing.

Money would also be available for people struggling to pay their mortgages.

Colorado housing programs have received more than $300 million in state and federal funds since December to help residents pay their rents and mortgage bills. The state programs received a record number of applications in January totaling $55 million, an amount larger than the money distributed in all of 2020. 

Small businesses and nonprofits would get more aid 

The Paycheck Protection Program would receive another $284 billion to support small businesses through loans, which can be forgiven if the money is primarily used to pay employees. More than 7.6 million small businesses have been approved for a total of $687.3 billion in loans since the pandemic began.

The new relief plan also set aside $25 billion for some of the hardest-hit small businesses — restaurants and bars with 20 or fewer locations. Of that, $5 billion is reserved for the smallest establishments that generated less than $500,000 in 2019 revenue. 

Additional small business relief would provide another $15 billion in grants through the U.S. Small Business Administration’s Economic Injury Disaster Loan Program. Last year, grants of up to $10,000 were made available as well as loans, but many small businesses did not get one or receive a full grant.

Hickenlooper says he would have d to see more aid directed toward events companies affected by the pandemic, namely caterers. 

A closed hair salon is pictured on a weekday afternoon along Federal Boulevard in Westminster on May 13, 2020. (Andy Colwell, Special to The Colorado Sun)

Millions for Colorado food banks, federal assistance programs

The American Rescue Plan would send $3.6 billion to the U.S. Department of Agriculture to increase food donations to food banks while also supporting farmers. 

The bill would also: 

  • Extend SNAP — food stamps — maximum benefits by 15% through Sept. 30
  • Allocate $800 million to the Women, Infants and Children supplemental program
  • Invest more than $5 billion in Pandemic Electronic Benefit Transfer program to help kids get access to food

The airline industry would get another boost

The aid bill would also send $8 billion to support airports across the U.S., including concessionaires and their employees who have been hard hit by the economic effects of the pandemic. 

Aerospace manufacturers would get $3 billion in temporary payroll support, and airlines would get $15 billion through Sept. 30 to prevent furloughs and layoffs. 

Amtrak, the nation’s passenger rail service, would get $1.7 billion to continue its operations through the end of this fiscal year, including $680 million for its long-haul network.

Colorado Sun staff writer Michael Booth contributed to this report.

CLARIFICATION: This story was updated at 9:29 a.m. on Wednesday, March. 10, 2021, to clarify that individuals making more than $80,000 a year will not receive federal direct payments as part of the American Rescue Plan.

UPDATE: This story was updated at 6:26 a.m. on Wednesday, March. 10, 2021, to reflect that the Colorado Department of Labor and Employment now says there won’t be a gap in people receiving jobless benefits.

Источник: https://coloradosun.com/2021/03/10/american-rescue-plan-colorado-effects/

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