COVID 19 has emerged as one of the most significant health as well as a financial threat. According to the International Monitory Fund (IMF), the world economy may face a reduction of $5 trillion from all over the world, and the claim seems reasonable considering the current business scenarios.
So, in the wake of COVID 19, the Senate approved the $2 trillion package that will benefit each sector of the USA. In this Coronavirus aid, each industry of the USA has already been decided. In this article we will discuss how this aid is going to be broken down.
The majority of leaders regard this legislation as the CARES Act, which intends to reduce the adverse impact of COVID 19 on the USA and each sector associated with this. Let’s have a look over the plan that got approved by the Senate on March 27 in 2020.
How An Individual Would Get Help From This Plan
This aid plan aims to help every individual by avoiding the damages caused by COVID 19. There are expanded plans that intend to resolve the issues caused by unemployment. Moreover, a lot of conveniences have been added to filing your taxes and preparing retirement plans.
The $300 billion budget has been allocated to come up to the needs of individuals. If a person earns less than $75,000 per year, he/she will get $1200 under this bill’s provisions. On the other hand, if they have children, they would get an extra $500 for their child. In short, a family of four people earning less than $150,000 would get a total of $3,400.
The income estimate has been made through the tax filing from 2018 and 2019. Moreover, those who receive social security benefits and don’t pay their taxes are eligible for this opportunity. The authenticity of their claims depends upon the feedback provided by the social security administration.
Payments for Unemployed People:
Under the provisions of the bill, $260 billion is available to eliminate the problems associated with the unemployed. Other than the payments offered by the states to their individuals, the federal government also added $600 to these payments. Now, each state pays this money to unemployed individuals according to their benchmarks.
Meanwhile, freelancers and gig workers are not eligible for the $600 under the provision of the bill.
Extended Deadline for Tax Return:
Under the provisions of the bill, those people who have not filed their 2019 taxes need not worry, as the date has been extended to July 15 of this year. Those who have already filed their tax returns can now apply for a refund.
Coverage of Insurance:
This bill allows people to have all the tests and treatment of COVID 19 without spending money. It has provided people with great ease.
How Would Small Businesses Get Help From This Plan?
Small businesses play a vital role in strengthening the GDP of the USA. So, in this bailout package, special aids have been offered for people who have small businesses. In various ways, the Senate has extended its ventures to save small businesses from the adverse impacts of this severe economic recession.
Emergency Grants for Small Businesses:
The total budget of $10 Billion has been allocated to cope with the needs of small businesses in case of an emergency. Each small business holder can have the benefit of up to $10,000. Moreover, the eligibility criterion for this plan is to have a maximum of 500 employees in a company.
Allowable Loans for Small Businesses:
The total amount that has been kept for this plan is $350 billion. Each small business owner can have a loan of up to $10 million for running its business. Meanwhile, the money that goes in the form of payments of mortgages, rents, and salaries of employees would be allowed. This plan will remain active up to the end of this coming June.
How Would Big Businesses Get Help From This Plan?
Big businesses are the main target that the Senate wants to save. So, in the wake of saving the big industries, $500 billion has been put aside for this purpose. These companies have to pay this money back to the government once the recession is over or in a time of severe need.
Budget for Airlines:
The total budget of $58 billion is there to keep the airlines open and operational. $25 billion from this allocated budget goes for the payments of salary for the crew of passenger air carriers, $4 billion for cargo air carrier crew, and $3 billion for air contractors.
Ban on Stock Buyback:
Under the provision of the bill, any company that takes benefit of this offer will not be subject to making stock buybacks for one year from the term of the loan.
No Benefits for Trump and Other Public officeholders:
President Trump, Vice president Mike Pence, all cabinet members, along with all members of Congress, will not be allowed to take any advantage from their businesses. Moreover, the same law applies to the family of these mentioned stakeholders—thumbs up for this step.
For All Businesses:
For the time being, the biggest concern is to keep the workers consoled that they will get back to their duties once the pandemic is over. For the sake of this surety, any small or big business is eligible to apply to have its paid taxes back.
How Would Public Health Get Help From This Plan?
COVID 19 has infected more than 0.8 million people all over the USA, and more than 50,000 people have died due to this lethal Coronavirus. So, this plan includes $100 billion to be spent against the spread and treatment of this Virus. This aid is for the hospitals that are fighting on front lines against Coronavirus.
Plan for Community Health Centers:
Community health centers are the backbone of the health section of the USA. For the time being, these community health centers are providing treatment for up to 28 million people, whether COVID 19 infected or not. So, to keep these community health centers functional, $1.32 billion has been put aside.
Plan for Drug Access:
The budget that was allocated for the diagnostic, treatment, and vaccines is $11 billion. Moreover, the addition of $80 million for the food and drug administration also carries massive importance as it will accelerate the approval of the new drugs.
Plan For Centers for Diseases Control and Prevention:
The package contains $4.3 billion for the center of disease control and prevention. This plan is highly reasonable for CDC and prevention centers.
Plan for Medicines and Supplies:
The total allocation that has been insured in this regard is $16 billion, and this allocation has been directed to the strategic National Stockpile to ensure the availability of equipment, masks, ventilators, and other things require to cope with this menace. Moreover, this part is also usable for the research of a vaccine.
How Would Safety Net Get Help From This Plan?
Meanwhile, there can be a severe food shortage in this crisis, as people are afraid of leaving their homes and have started buying things in bulk. So, to maintain the safety of the stock, the following steps have been taken;
Plan for Child Nutrition:
To offer a more flexible plan, the government has issued a directive to pay $8.8 Billion to schools to maintain students’ meals at their schools. This act would surely reduce tension among the masses.
Plan for Food Stamps:
Supplemental Nutrition Assistance Program is going to have a total budget of $15.5 billion. This part of the money will be used to cover the expected increased costs of products in the wake of COVID 19.
Plan for the Food Banks:
The additional $450 Million have been reserved to maintain the food banks in the USA.
How State and Local Govt Would Get Help From This Plan?
The total amount of $339.8 billion will go to the State and Local Govt. $274 billion will be specific aid in the wake of COVID 19, along with $150 billion for those states that are vulnerable against the pandemic and facing a higher number of cases.
This is how the state and local government will get benefit under the provisions of this Coronavirus aid plan.
How Would Education Get Help From This Plan?
This plan comprises College students and graduates. There are the following details of this plan;
Temporary Relief in Loans:
Students that have taken loans from the government will not be asked to pay their loans back till September 30. Moreover, there will be no penalty for these loans.
Plan for Work-Study Fund:
Under the provisions of the bill, it has been allowed for schools to utilize the work-study funds that are still unused.
Final Words:
So, having gone through the situation and budget allocation to each section, it appears that it will be quite a relief for people facing this tough phase of their lives. Tax exemptions up to specific dates, and other facilities would genuinely help the people to cope with this menace of the COVID 19. Allocations in health, small business, and big business sectors are great too. So, we can see that the USA Federal government is all set to fight this Virus.
