Huge package has something for everyone

Congress has passed and President Trump has signed an economic recovery package into law that’s more than half the size of the annual federal budget and is equal to more than 10% of the U.S. GDP.

The $2.2 trillion legislation will speed government payments of $1,200 to many Americans and increase jobless benefits for millions of people thrown out of work as the coronavirus hammers the economy. Businesses big and small will get loans, grants and tax breaks. It will send unprecedented billions to states and local governments, and the nation’s all-but-overwhelmed health care system.

The legislation establishes a $454 billion program for guaranteed, subsidized loans to larger industries in hopes of leveraging up to $4.5 trillion in lending to distressed businesses, states and municipalities.

There is also $150 billion devoted to the health care system, including $100 billion for grants to hospitals and other health care providers buckling under the strain of COVID-19 caseloads.

It also seeks to strengthen the safety net for the poor and homeless. Schools and students would get relief, small business loan payments would be deferred. Evictions from public housing would be put on pause.

Companies would also be able to defer payment of the 6.2% Social Security payroll tax. A huge tax break for interest costs and operating losses limited by the 2017 tax overhaul was restored at a $200 billion cost in a boon for the real estate sector.