Congress reached a long-waited deal on Sunday night to provide a package of nearly $900 billion in stimulus to Americans to counter lingering effects of the COVID economic shutdown.
“For the information of all Senators, and for the information of the American people, we can finally report what our nation has needed to hear for a long time,” U.S. Senate Majority Leader Mitch McConnell, R-Ky, said from the Senate floor when announcing the deal. “More help is on the way.
According to a joint statement released by House Speaker Nancy Pelosi, D-Calif., and Senate Democratic Leader Chuck Schumer, D-N.Y., the package includes:
- Direct payments of $600 per adult and child.
- Over $284 billion for first and second forgivable PPP loans, expanded PPP eligibility for nonprofits and local newspapers, TV and radio broadcasters, key modifications to PPP to serve the smallest businesses and struggling non-profits and better assist independent restaurants, and includes $15 billion in dedicated funding for live venues, independent movie theaters, and cultural institutions.
- $20 billion for targeted EIDL Grants for smaller businesses.
- $25 billion in rental assistance and an extension of the eviction moratorium.
“We will be repurposing more than $560 billion in money that was already set aside by the CARES Act — but not spent — toward urgent needs,” McConnell added.
Pork or needed provisions?
It also includes several Democrat-backed provisions Republicans deem unrelated to the pandemic’s effects, including an expansion of Pell Grants, money for broadband access, and clean energy reforms to “fight the climate crisis.”
“From where I stand, from where Senate Republicans stand, there is no reason why this urgent package could not have been signed into law multiple months ago,” McConnell said of the difficult negotiations. “For months, Senate Republicans have consistently supported a targeted rescue package, under $1 trillion, focused on the same kinds of policies that we have settled on today.”
Markets largely shrugged at the news a deal was reached, with the three major indexes flat to slightly down in midday trading.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
