US to spend $2 trillion on Covid-19

White House, Senate have reached a deal to spend a massive sum of $2 trillion on coronavirus

Senate Majority Leader, Mitch McConnell, disclosed the deal on Wednesday March 25th, 2020.

According to the White House and Senate leaders the agreement is aimed at alleviating the economic impact of the coronavirus outbreak.

“At last we have a deal. And in effect, this is a war time investment,” Senate Majority Leader Mitch McConnell said.

Although the full text of the bill cannot be ascertained, lawmakers indicated that the Republican’s initial proposal for direct cash payments would be included.

Under the plan, people making up to $75,000 a year are expected to receive checks of $1,200.Couples making $150,000 will receive $2,400 with an additional $500 per child. The new agreement removed thephase-in provision that excluded lower-income Americans from receiving the full benefit.

The payments would decrease for those making more than $75,000, with an income cap of $99,000 per individual or $198,000 for couples.

The bill is also expected to include roughly $100 billion in assistance for hospitals, $350 billion in assistance to small businesses to help them meet payroll, $500 billion in aid for corporations, such as airline companies and cruise lines, that have been hurt by the coronavirus outbreak.

Unemployment insurance would also be bolstered to increase payments and extend the benefit to those who typically do not qualify such as gig economy workers, furloughed employees and freelancers.

Legislation rarely moves this fast in Washington, especially for a bill of this size. But both parties appeared motivated to act quickly as unemployment numbers continue to rise and more and more businesses are forced to close their doors.

The House, whose members are currently at home in their districts, are now deciding how they will vote on the bill. Two members announced last week that they had been diagnosed with the coronavirus, forcing a handful of their colleagues who had been in close contact with them to self-isolate for the recommended two week period.

Once passed, the spending package will be the third round of emergency legislation that Congress has approved to combat the outbreak. Lawmakers approved an $8.3 billion bill for health agencies and a roughly $100 billion bill aimed at providing free coronavirus testing, some paid leave and unemployment benefits, as well as additional Medicaid funding and food assistance.

Trump signed the first two bills into law and is expected to sign the third bill, too.