Overview of Biden’s Proposed $1.9 Trillion Stimulus Package
The House of Representatives has been hard at work drafting its version of President Joe Biden’s proposed stimulus bill, which includes extended unemployment benefits, direct checks to individuals and more. Democrats hope to pass the $1.9 trillion relief package by mid-March, before existing COVID-19 relief measures, such as enhanced unemployment insurance, expire.
The bill is expected to pass a House vote in the coming week, but it may face hurdles in the Senate, where there is a 50-50 party split. That means any Democrat dissent could derail Biden’s ambitious goal. And intraparty dissent is definitely a possibility—two Democrats have already voiced opposition to at least one of the bill’s elements: a higher minimum wage.
While this legislation may still be a way off—and may come in a slightly different form—it’s important for employers to have an idea of what to expect. To that end, this article outlines the most relevant aspects currently known about the bill—these components are likely to change as Congress hashes out its details.
Updated information will be provided as details are made public.
SMALL BUSINESS ASSISTANCE
The proposed bill intends to invest billions toward small business assistance, and even provides heavily impacted businesses with fewer than 10 employees priority with some of the funds. Here is the current funding breakdown:
- Emergency Injury Disaster Loan program: $15 billion
- New grant program for bars and restaurants, specifically: $25 billion – Eligible businesses could receive up to $10 million, using the money for payroll, rent, utilities and other expenses.
- Paycheck Protection Program: $7.25 billion
Just like the two other COVID-19 stimulus packages passed during the pandemic, this version will also feature direct payments to Americans. This time around, eligible recipients can expect $1,400 per person ($2,800 for couples), including adult dependents—a family of four could get up to $5,600.
However, payment parameters are stricter this time around than with previous stimulus checks. The full check amount will go to individuals earning under $75,000 (or $150,000 for couples), with payments cut off entirely for individuals earning over $100,000 (or $200,000 for couples). Anyone with income between those figures will receive a reduced check.Members login to access full article