Coronavirus legislation explained: What the key new bills mean for you
These four provisions aim to combat COVID-19 calamities — from physical to fiscal health.
The novel coronavirus has swiftly and radically changed the structure of daily life worldwide. Not only has COVID-19 contaminated individuals, but it has also infected the economy, keeping Washington working overtime to mitigate its long-term effects on the stock market, business, and everyday Americans.
Although the recently passed $2 trillion stimulus package has garnered the most national attention, it’s just one of 77 coronavirus-related bills that the administration has signed to alleviate COVID-19 associated pains. The pandemic has penetrated 178 countries and regions; there are more than 785,000 confirmed cases and nearly 38,000 deaths as of March 31, according to Johns Hopkins’ Center for Systems Science and Engineering live tracker. In the U.S., there have been at least 164,000 recognized cases across all states and more than 3,000 deaths. The U.S. became the country with the most overall diagnoses and active cases in the world on March 26, surpassing China and Italy.
Here is a timeline of the most important pieces of coronavirus relief legislation — and how it affects you.
1. The first bill passed
Despite the overwhelming economic focus of more recent legislation, the first bill passed in response to the virus had nothing to do with fiscal policy. On March 3, the Senate agreed to S.RES.497., which commemorates the life of Dr. Li Wenliang: a doctor from Wuhan who voiced concerns about the coronavirus in its earliest stages despite being threatened with arrest by Chinese officials.
He later died from the very virus. The Chinese government has since apologized to his family.
In addition to the commemoration, the bill further calls for the Chinese government to cooperate with the global health community in providing “free and unfettered access, without censorship or social media controls, to information about 2019–nCoV.” It also explicitly calls for the Chinese government to cease exclusion of Taiwan from critical international organizations, such as the World Health Organization.
What this means for you?
S.RES.497. is significant not for direct impacts on the American taxpayer, but because it is the beginning of this legislative story, ultimately demonstrative of the mindset through which Congress approaches further responses.
2. The first major apportionment of funding
H.R. 6074 Corona Preparedness and Response Supplemental Appropriations Act, 2020, which became public law March 6, 2020, was the first significant outlay of cash by the federal government in response to the virus. It provided $8.3 billion dollars to the Department of Health and Human Services, the State Department and the Small Business Administration to fight and recover from the outbreak.
Of this funding, $6.7 billion (81%) is earmarked for domestic response to the virus, with the remaining $1.6 billion designated for international response expenditures. This is basically internal to the federal government, allowing existing agencies to expand their relief and containment efforts as the situation progresses.
What this means for you?
H.R. 6074 waives telehealth restrictions on Medicare providers, provides $20 million in funding for SBA emergency loans and expands the ability of the federal government to respond to an evolving pandemic.
3. The first direct support for Americans in need
On March 18, 2020, President Trump signed into law H.R. 6201 — Families First Coronavirus Response Act. This bill provides appropriations to address food insecurity, unemployment and paid leave time, as well as requires Medicare and Medicaid to cover coronavirus testing.
Emergency funds are designated to those who might face additional food insecurity during this time through safety-net programs; it also lowers qualification requirements, such as work and work training for S.N.A.P. benefit eligibility. Students who rely on free and reduced lunch from schools are ensured a continuity of food access despite school closures.
The Centers for Disease Control and Prevention and the Occupational Safety and Health Administration are required to issue a new Emergency Temporary Standard for the safety of health care workers and other industries these organizations deem to be of elevated risk.
And Division D — the Emergency Paid Leave Act of 2020 amends the Social Security Act, providing for an “emergency leave day.” Individuals who were working in the 30 days before they were impacted by the coronavirus are eligible for the new federal emergency paid leave benefit program; workers receive two-thirds of their average monthly earnings — up to $4,000 — for any month in which they must take 14 days or more off work with no compensation for coronavirus related reasons. The bill also disburses $1 billion for emergency grants to states to assist with unemployment claims and subsequent processing.
This bill also includes the largest-ever federal mandate of paid leave: All employers are required to give employees an additional 14 days of paid sick leave in the event of a public health emergency.
Finally, testing for COVID-19 is mandated to be covered under all private health plans: Medicare Part B, Medicare Advantage, Medicaid, C.H.I.P. and TRICARE. Uninsured individuals will be reimbursed through the National Disaster Medical System; Native Americans and Alaskan Natives will not experience cost-sharing for COVID-19 testing.
What this means for you?
H.R. 6201 expands funding and lowers some barriers to qualification for WIC, SNAP, TEFAP, and Senior Nutrition programs (if you are facing food insecurity, learn more about these programs here). Health care workers and others in high-risk industries will have new safety protocols soon. Workers have increased access to paid sick leave provided by employers and emergency paid leave benefits from the federal government. Testing for coronavirus will be covered or reimbursed.
4. The economic stimulus package
The most comprehensive piece of legislation is a $2.2 trillion dollar bill signed into law March 27, 2020, by President Donald Trump: the Coronavirus Aid, Relief and Economic Security Act (CARES).
Individuals are getting an outlay of nearly $300 billion. Most individuals earning under $75,000 per year (based on their most recent tax filing) can expect direct cash payments of $1,200 plus $500 per child under age 17. These checks phase out at an individually declared income of $99,000 or $198,000 per couple who filed jointly. Individuals will also receive increased unemployment benefits for extended periods of time with a lower barrier for qualification of these benefits. For the first time, freelancers, contractors and those who are self-employed are also eligible for unemployment benefits. And employers can provide tax-free student loan benefits to employees; tax filing deadlines have been extended until July 15.
$377 billion was outlaid for small business emergency grants, forgivable loans and loan relief. Large businesses and other corporate entities have been allocated $500 billion, with industries hardest hit by coronavirus concerns (think airlines) garnering more significant provisions. Companies who receive loans are prohibited from engaging in stock-buybacks and must report all federal funding they accept; businesses of all sizes are eligible for tax credits in efforts to keep workers on the payroll.
And $135.5 billion goes toward public health efforts: hospitals, health centers and telehealth alike. About $27 billion of funding is for medicine and supplies, including new treatments, vaccines, ventilators, masks and more.
The remainder of funding goes to a vast variety of different programs — from local government grants to student loan deferment to arts programming.
What this means for you?
S.3548 provides significant economic relief to nearly every sector of the economy. Individuals should continue to follow the IRS website for information on stimulus payment checks and tax filing deadlines. Businesses of all types will receive aid from the federal government, with additional emphasis on industries most directly affected by coronavirus. Plus it designates much-needed support for health care.
Versión en español, traducida por Carolina Gonzalez.
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