As a response to the outbreak of the Covid-19 pandemic, Congress passed the Cares Act as an attempt to reduce the economic recession due to the the global pandemic.
The Cares Act provided: 1
$290 billion in direct payments to eligible taxpayers.
The law included a $1,200 stimulus check to all eligible adults earning up to $75,000 and couples earning up to $150,000 received $2,400.
$260 billion in expanded unemployment insurance.
Those receiving unemployment insurance through their states’ unemployment insurance also received an additional $600 a week for four months. That’s in addition to what states already pay, which has been extended an additional 13 weeks.
$150 billion for state and local governments.
$510 billion in expanded lending for businesses and local governments, mostly through the Federal Reserve.
$377 billion in new loans and grants for small businesses.
$350 billion went to the Paycheck Protection Program that lent up to $10 million to small businesses with fewer than 500 employees. The loan was turned into a grant for businesses who used a certain percentage of the loan to pay employees and other essential bills such as mortgages and rent.
$127 billion for hospitals for ventilators and other equipment.
An eviction moratorium was also enacted, which covered all financially financed rentals, roughly 25% of all rental units in the United States. 2 The moratorium ended July 24th, 2020. For more on the current state of housing evictions by jurisdiction, see this eviction lab report.
There have been discussions in Congress about a second round of stimulus. However, a bill both Republican’s and Democrat’s can agree on has yet to materialize.
For the text of the bill , see here.
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