In last minute bargaining, Democratic and Republican Congressional leaders came to terms with a deal to fund a coronavirus relief package that will provide $600 stimulus checks and extend unemployment supplemental payments, the Washington Post reports.
The $900 billion package includes compromises from both sides of the aisle, with Democrats dropping aid to city and state governments in fiscal distress and Republicans dropping a requirement for a complete liability shield for businesses against lawsuits regarding the coronavirus.
“More help is on the way. Moments ago, in consultation with our committees, the four leaders of the Senate and House finalized an agreement. It would be another major rescue package for the American people,” Senate Majority Leader Mitch McConnell said. “As our citizens continue battling this coronavirus pandemic this holiday season, they will not be fighting alone.”
An additional $330 billion will be available to small businesses, although specific issues about what constitutes a small business remain. The CARES Act had significant loopholes to allow “small businesses” to include entities owned by people who personally took in tens of millions of dollars, such as NFL quarterback Tom Brady and televangelist Joel Osteen.
Like the last round of stimulus checks, the $600 per person direct payment would be reduced for people who made more than $75,000 per individual or $150,000 per couple, as the stimulus check from the CARES Act established. Children would also qualify a family for an additional $600, for a maximum of $2,400.
Three hundred dollar unemployment benefits will be extended for an additional 11 weeks, through March 14, as well as unemployment payments for gig and contract workers.
Democrats believe that they’ll be able to pass aid to state and municipal governments after the Biden Administration takes over January 20th. Once concession Republicans made is to allow leftover funds from the CARES Act to be distributed to state and local governments beyond the December 31st deadline.
The costs of loans made to businesses under the Payroll Protection Program will also qualify for tax deductions, including those who sought loan forgiveness for meeting outlined requirements.