TIA Brief on Congress’s CARES 3.0
February 8, 2021: This week Democrats, who control the White House and both chamber of Congress, rolled out their “CARES 3.0” COVID-19 relief package. A $1.9 trillion package that encompasses multiple industry sectors and includes personal and business stimulus. The House is set to vote the week of February 22nd.
This COVID-19 relief package will be considered under the method of the reconciliation process, a process which requires a simple majority vote. Senate Republicans utilized the same method to pass their tax cut package under the Trump Administration.
Here is what the package includes:
The House draft measures would send $1,400 payments to individuals earning up to $75,000 or couples making $150,000. This is creating a divide in the Congress as there is a push to lower the eligibility to those earning $50,000. Those payments phase out for single fliers earning more than $100,000 or married taxpayers making $200,000. Eligibility will be based on your most recent tax filing. The legislation would also send $1,400 checks dependents in households that qualify, this language has been lacking in previous versions.
An extension and expansion of unemployment benefits are scheduled to expire mid-March. The legislation would increase the weekly federal benefit to $400 from current level of $300 and extend it through August.
The bill would increase the minimum wage gradually to eventually $15 per hour by 2025. This section is at the mercy of the parliamentarian, as the method they are using for passage can only increase or decrease funds, it can not change statute.
Here are a few budget allotments of interest:
- $150 million will be given for worker protection programs as it relates to COVID-19. This will mean more enforcement and involvement from Occupational Safety and Health Administration (OSH
- $14 billion in payroll assistance to airlines, with $1 billion for their contractors.
- $30 billion for transit
- $8 billion for airports
- $1.5 billion for Amtrak
TIA will continue to monitor the COVID relief package, especially the parliamentarian’s decision on whether to allow the change in minimum wage. If you have any questions, please contact us at email@example.com