USA Coronavirus Response: Phase 3 Stimulus Imminent

USA Coronavirus Response: Phase 3 Stimulus Imminent

This morning the Senate leadership of both parties reported that they had agreed on a new coronavirus stimulus package and expected to ratify it in a vote tonight. At a rough $2tn size, the bill is nearly double estimates from last week and approaches 10% of US GDP. Most Americans (those earning no more than $75k) will experience the stimulus (if it becomes law) in the form of $1,200 direct payments, and their children will receive $500. There is a $367bn fund for small businesses, including $17bn to support six months of loan forbearance. Hospitals are earmarked for $130bn in funding, and state and municipal governments are being given $150bn in stimulus spending. The bill also expands eligibility for unemployment insurance and lets the federal government give affected workers an additional $600 weekly for up to four months. Smaller provisions include $25bn for emergency transit, $30bn for education relief funding and a new tax credit incentivising businesses not to lay off homebound employees.

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