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View Biden’s $ 1.9 trillion stimulus program

The next Biden administration announced a $ 1.9 trillion stimulus on Thursday. This provides a hope list of spending measures aimed at helping both the public and the economy recover from coronavirus outbreaks, state and local aid, and from more generous unemployment benefits to high-dose vaccinations. Provided.

The following describes some of the biggest provisions of how they work and what they mean for the US economy, which is suffering from a winter of coronavirus surges and partial blockades of states and regions. To do.

That $ 1.9 trillion figure is a lot of money, to say the least. Congress passed a $ 900 billion bailout program in December, and its package in March was about $ 2 trillion. By comparison, the American Recovery and Reinvestment Act of 2009, a major financial crisis spending package, recorded approximately $ 800 billion.

President-elect Joseph R. Biden Jr. is trying to fulfill the Democratic promise to send more money to households in the form of a one-time check. The proposal would send $ 1,400 per person to people below a certain income standard, with the addition of a $ 600 check that came as part of the December bailout package.

Biden has asked Congress to extend the emergency unemployment insurance program until the end of September — they will expire in mid-March — “$ 400 a week of unemployment insurance to help workers hit. “Supplement” is provided.

That amount is higher than the legislators included in the December stimulus package that provided a $ 300 supplement in 11 weeks, but lower than the $ 600 weekly benefit included in the first package in March.

Within 100 days of Mr. Biden’s inauguration, the administration says it wants to make the “investment needed to achieve the presidential election goal of safely resuming the majority” of kindergarten to second-year schools.

Government officials are proposing $ 170 billion to schools, supplemented by additional state and local funding. Approximately $ 130 billion of that will be used for reopening, and much of the remaining money will be used to help universities address the transition to distance learning and other pandemic-related issues.

After stable at $ 7.25 for over a decade, the federal minimum wage will rise to $ 15 per hour under the proposal, ending the minimum wage and below the minimum wage for persons with disabilities. Many states and municipalities have already raised their own wage floors. It is not clear how quickly and gradually higher wages will be introduced.

According to a 2019 Congressional Budget Office survey, raising wages nationwide to $ 15 could increase salaries for tens of millions of workers, but could cost some work. Will reduce salary.

Mr. Biden’s plan will provide $ 440 billion in aid to the community, according to the government, in addition to funding for the reopening of the school. Relief plans include multi-billion dollar grants and lending programs for SMEs (it’s not entirely clear how they work), and as emergency funding to state, local, and quasi-state governments. I need $ 350 billion.

Overall, provincial and local governments have suffered a non-uniform financial impact from the pandemic, although their revenues have declined less than previously expected. They have cut salaries significantly because they employ about 13% of American workers.

According to the government’s outline, Mr. Biden demanded $ 160 billion for a national vaccination program, extended testing, a public health work program, and other steps aimed at combating the virus. doing.

The plan is to invest $ 20 billion in a national vaccination program “in collaboration with states, provinces, tribes and territories” to allow people to receive shots free of charge regardless of immigration status. I am aiming. Approximately $ 50 billion will be devoted to improving testing and $ 40 billion will be allocated to strengthening protective equipment and equipment, staffing emergency response personnel, and improving equipment manufacturing.

Mr. Biden updated the paid leave provisions that were not extended as part of the December package, while eliminating the exemption for large and small employers. The plan will provide caregivers working in closed schools and care centers with 14 weeks of paid sick leave, family leave and medical leave, and eligible workers with a $ 1,400 vacation allowance.

State and local governments and employers with less than 500 employees will be reimbursed through a refundable tax credit. The emergency leave policy will continue until the end of September.

The plan is to temporarily increase the size of tax credits for more families to make them “refundable.” This means that people will receive cash even if they do not have enough income to pay their income tax.

Under the expanded childcare tax credit, families with children up to the age of 13 can receive a total of up to $ 4,000 for one child, or $ 8,000 for two or more children. .. Families under $ 125,000 per year receive full credit, and families up to $ 400,000 receive partial credit.

View Biden’s $ 1.9 trillion stimulus program

Source link View Biden’s $ 1.9 trillion stimulus program

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