Santa Cruz Sentinel

Highlights of the COVID-19 relief bill advancing in Congress

- By Kevin Freking

The House is expected to pass a $1.9 trillion pandemic relief package late Friday that includes $1,400 checks for most Americans and billions of dollars for schools, state and local government­s and businesses.

A look at some highlights of the legislatio­n:

More checks

The legislatio­n provides a rebate that amounts to $1,400 for a single taxpayer, or $2,800 for a married couple that files jointly, plus $1,400 per dependent. Individual­s earning up to $75,000 would get the full amount as would married couples with incomes up to $150,000.

The size of the check would shrink for those making slightly more with a hard cut-off at $100,000 for individual­s and $200,000 for married couples.

Bigger tlx brelk for households with kids

Under current law, most taxpayers can reduce their federal income tax bill by up to $2,000 per child. The package moving through the House would increase the tax break to $3,000 for every child age 6 to 17 and $3,600 for every child under the age of 6.

The legislatio­n also calls for the payments to be delivered monthly instead of in one lump sum. If the secretary of the Treasury determines that isn’t feasible, then the payments are to be made as frequently as possible.

Also, families would get the full credit regardless of how little they make in a year, even just a few hundred dollars, leading to criticism that the changes would serve as a disincenti­ve to work.

Aid to stltes, cities

The legislatio­n would send $350 billion to state and local government­s and tribal government­s. While Republican­s in Congress have largely objected to this initiative, Biden’s push has some GOP support among governors and mayors. Many communitie­s have taken hits to their tax base as millions of people have lost their jobs and as people stay home and avoid restaurant­s and stores to prevent getting COVID-19. Many areas have also seen expenses rise as they work to treat the sick and ramp up vaccinatio­ns.

Aid to schools

The bill calls for $130 billion in additional help to schools for students in kindergart­en through 12th grade. The money would be used to reduce class sizes and modify classrooms to enhance social distancing, install ventilatio­n systems and purchase personal protective equipment. The money could also be used to increase the hiring of nurses, counselors and to provide summer school.

Spending for colleges and universiti­es would be boosted by $40 billion, with the money used to defray an institutio­n’s pandemic-related expenses and to provide emergency aid to students to cover expenses such as food and housing and computer equipment.

Aid to businesses

The bill provides another round of relief for airlines and eligible contractor­s, $15 billion, so long as they refrain from furloughin­g workers or cutting pay through September. It’s the third round of support for airlines.

A new program for restaurant­s and bars hurt by the pandemic would receive $25 billion. The grants provide up to $10 million per entity with a limit of $5 million per physical location. The grants can be used to cover payroll, rent, utilities and other operationa­l expenses.

Aid to the unem0loyed

Expanded unemployme­nt benefits from the federal government would be extended, with an increase from $300 a week to $400 a week. That’s on top of what beneficiar­ies are getting through their state unemployme­nt insurance program.

Hellth clre

The bill provides money for key elements of the Biden administra­tion’s COVID-19 response, while also trying to advance longstandi­ng Democratic priorities like increasing coverage under the Obama-era Affordable Care Act.

On “Obamacare,” it dangles a fiscal carrot in front of a dozen states, mainly in the South, that have not yet taken up the law’s Medicaid expansion to cover more low-income adults. Whether such a sweetener would be enough to start wearing down longstandi­ng Republican opposition to Medicaid expansion is uncertain.

The bill provides $46 billion to expand federal, state and local testing for COVID-19 and to enhance contract tracing capabiliti­es with new investment­s to expand laboratory capacity and set up mobile testing units.

Rlising minimum wlge

The bill would gradually raise the federal minimum wage to $15 per hour by June 2025 and then adjust it to increase at the same rate as median hourly wages.

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