The Senate just wrapped up a USD 2.3 tln worth Christmas gift for Americans - a giant spending bill including COVID-19 relief aid, government funding, and corporate tax breaks.
Second-largest relief bill in history
…if Trump signs the bill and makes it into law. The package includes USD 900 bln in virus relief and USD 1.4 tln worth of regular government funding valid to Sep. 30.
Here’s a closer look at key offerings:
- For individuals like you: Direct payments worth USD 600 to most Americans and their children (you are ineligible to receive if your income is >USD 100k) + enhanced unemployment benefits worth USD 300 per week.
- For businesses: Paycheck protection program with USD 284 bln available for loans - this includes USD 15 bln payroll reimbursement for airlines but excludes public companies. Select industries will also receive tax breaks.
- There’s also USD 8 bln for vaccine distribution and additional funding for housing, education, etc.
When will my package arrive? Treasury Secretary Mnuchin says that payments would be dispatched next week.
Just avoided a double-dip recession
This package is expected to add around 1.5% to Q1 2021 annualized GDP growth - steering clear of a double-dip recession analysts anticipated had lawmakers failed to settle.
More packages to come?… Democrats claimed that this is just the ‘first step’ and that they would immediately work on a new package once Biden takes office on Jan 20.
- The Democratic push is likely to include infrastructure spending, which already received pressure from Republicans. Mnuchin stated the bill just passed would be the last package needed for this pandemic.
- Whether Democrats can control both chambers of Congress will need to see the results of Georgia runoff elections on Jan 5. But even if Democrats defeat two Republican incumbents, the Senate would be split 50-50. Vice President-elect Kamala Harris would give a tie-breaking vote.