USA TODAY US Edition

Spending bill contains controvers­y

$2.3 trillion package linked to aid legislatio­n

- Matthew Brown and Ledyard King

WASHINGTON – The $2.3 trillion spending package Congress overwhelmi­ngly passed last week has a little bit of everything.

Fused from two major bills – a $900 billion coronaviru­s aid package to address the economic fallout of the pandemic and a $1.4 trillion spending measure to fund the government through Sept. 30 – the legislatio­n includes money for direct payments to millions of families, vaccine distributi­on efforts and pay raises for the military.

It also includes controvers­ial provisions that would extend tax breaks for race car tracks and business lunches, millions for venues that aren’t open and a requiremen­t that carbon monoxide detectors be installed in public housing apartments. It includes billions in foreign aid, which often draws conservati­ves’ ire, and money for President Donald Trump’s border wall, which enrages liberals.

Trump signaled he may veto the bill, saying foreign aid and money for cultural institutio­ns have no place in a bill aimed at helping the country weather the coronaviru­s pandemic that has killed more than 332,000 and shuttered thousands of businesses.

Trump called the bill a “disgrace” for not providing enough in direct payments to Americans and for spending too much on foreign aid (though the budget he submitted to Congressca­lls for roughly the same funding levels).

Many of the tax breaks and controvers­ial provisions are included in the $1.4 trillion spending bill attached to the relief bill.

It is “a sweetheart deal for defense contractor­s, guarantees high levels of farm subsidies deep into 2021 and (tacks) on dozens of other special-interest provisions that won’t be found until days or weeks after the lawmakers have left the Capitol,” said Steve Ellis, president of Taxpayers for Common Sense, a nonpartisa­n watchdog group that tracks government spending.

Foreign aid programs

Some of the entries include $505 million in aid to Central American countries; $25 million for gender equity and democracy promotion programs in Pakistan; $1.3 billion in military aid to Egypt; and $219.5 million in aid to Southeast Asian nations.

Expanded military budget

The bill includes increases in military spending and contracts through 2021.

Lawmakers approved $696 billion in military appropriat­ions, including $23.3 billion to build 10 warships and $9.6 billion for 96 F-35 fighters. Liberal Democrats opposed the budget increases.

‘Three-martini lunch’ deductions

Democrats objected to a provision that would allow businesses to deduct two full years worth of business meals when filing taxes, deriding the measure as “three-martini lunches” for the rich.

The tax code allows half of those costs to be deducted. The cost of the new benefit, which the White House argued would help restaurant­s, is projected at $6 billion in tax breaks for corporatio­ns over the next decade.

Keeping live venues afloat

About $15 billion of aid is designated for performing arts centers, independen­t movie theaters and other cultural institutio­ns hit hard by the imposition of social distancing measures designed to limit the spread of the virus.

The Save Our Stages act is aimed at helping venues that have closed or are at risk of shutting down.

Supporters of the bipartisan effort said the grants would provide financial support to pay employees and preserve a critical economic sector.

Aid to cultural institutio­ns

More than $40 million was approved for the John F. Kennedy Center for the Performing Arts, the Washington cultural jewel, many of whose trustees are appointed by the president.

The money includes $26 million for operations, maintenanc­e and security, plus $14 million for improvemen­ts.

Also receiving taxpayer funds would be the U.S. Holocaust Memorial Museum ($61.4 million), the National Endowment for the Arts ($167.5 million) and the Smithsonia­n Institutio­n (more than $1 billion).

Money for the border wall

The spending bill includes funds to fulfill one of Trump’s most prominent campaign promises: constructi­on of a partition on the U.S-Mexican border.

The $1.375 billion for the border wall is not as much as the nearly $2 billion Trump wanted, but it’s more than his critics want taxpayers to cover.

A ‘NASCAR tax break’

The package would extend a tax benefit for racetrack owners.

Under the “NASCAR tax break,” owners could get a windfall of up to $224 million over 10 years to write off constructi­on and renovation costs.

Establishm­ent of museums

Legislatio­n tied to the government funding bill approved the creation of Smithsonia­n museums for Latino and women’s history.

Sen. Mike Lee, R-Utah, opposed the move.

“The last thing we need is to further divide an already divided nation within an array of separate but equal museums of hyphenated identity groups,” he said.

Tax breaks for the liquor industry

The liquor industry was a big winner in the bill, which would permanentl­y secure billions in tax breaks even though studies show alcohol consumptio­n has risen sharply during the pandemic.

Among the measures is a cut in the excise tax for beer, which would probably incur a 10-year cost of $1 billion; an excise tax break for domestic wine producers worth $2.2 billion; and a tax break for makers of distilled spirits valued at $5.7 billion.

Presidenti­al transition expenses

The package includes $9.9 million that would help President-elect Joe Biden’s administra­tion assume office in the coming year. The bill includes at least $8 million meant for the Trump administra­tion to aid in the process.

Postal Service funding

The aid package includes a provision that would convert a $10 billion loan to the U.S. Postal Service into direct aid.

The bill would preserve six-day postal delivery and prevent the consolidat­ion or closure of rural and small post offices, measures which the president has opposed.

 ?? AP ?? After House Speaker Nancy Pelosi, D-Calif.; Senate Majority Leader Mitch McConnell, R-Ky.; and Senate Minority Leader Chuck Schumer, D-N.Y., worked on a coronaviru­s relief package, the president threatened a veto.
AP After House Speaker Nancy Pelosi, D-Calif.; Senate Majority Leader Mitch McConnell, R-Ky.; and Senate Minority Leader Chuck Schumer, D-N.Y., worked on a coronaviru­s relief package, the president threatened a veto.

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