- The Senate passed a $US2.2 trillion stimulus bill Wednesday evening to bolster the US economy during the coronavirus pandemic.
- The bill now needs to pass in the House of Representatives before being signed into law by President Donald Trump.
- The proposed relief package includes about $US500 billion in loans for struggling companies, up to $US150 billion in loans to state and local governments, $US367 billion to small businesses, and $US130 billion to hospitals and healthcare providers, according to The Washington Post.
- It would also expand unemployment benefits by boosting the payment amount by $US600 per week for up to 4 months and allowing some self-employed and contract workers to get unemployment benefits for the first time.
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The Senate passed a $US2.2 trillion stimulus bill Wednesday evening to bolster the US economy during the coronavirus pandemic.
The proposed relief package, which still needs to pass in the House of Representatives before being signed into law by President Donald Trump, includes about $US500 billion in loans and other help to companies, up to $US150 billion to state and local governments, $US367 billion to small businesses, and $US130 billion to hospitals and healthcare providers, according to The Washington Post. The last number grew from $US100 billion in a draft of the bill seen by Business Insider
One of the bill’s core tenets is expanding unemployment benefits.
“Every American worker who is laid off will have their salary remunerated by the federal government so they can pay their bills,” Senate Minority Leader Chuck Schumer said.
The US has already seen a record number of people applying for unemployment benefits as the pandemic results in mass layoffs. Nearly 3.3 million people filed for unemployment insurance for the week ending March 21, the Labour Department reported Thursday. That’s the largest number on record for a single week, far outstripping the record of almost 700,000 newly filed claims set in 1982 and exceeding Goldman Sachs’ estimate of 2.25 million.
Here’s how the proposed bill would affect unemployment insurance.
An extra $US600 per week for up to 4 months, and provisions for self-employed and contract workers
The package would increase the amount each unemployment claimant receives each week by $US600. In January, the average unemployment-insurance check was $US385 per week, so an additional $US600 is a huge jump.
Claimants will be eligible to receive these higher benefit amounts for up to four months.
The bill also includes a Pandemic Unemployment Assistance program, which provides up to 39 weeks – or about five-and-a-half months – of unemployment benefits to those who typically aren’t eligible, including self-employed and contract workers, according to the American Action Forum.
The bill passed in the Senate on Wednesday evening, and it now needs to pass in the House of Representatives before being signed into law by President Donald Trump.
The new coronavirus aid bill was not the first to address unemployment insurance in response to the pandemic. On March 18, Congress passed and Trump signed into law the Families First Coronavirus Response Act, which expanded unemployment benefits and gave grants to states for processing and paying unemployment claims.
The federal government also previously issued guidance to states to allow more flexibility with granting unemployment benefits to employees who can’t go to work because their workplace was shut down, to workers who are quarantined, and to those who leave work due to a risk of exposure or infection or to care for a family member.