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Summary
- The US Congress has finalised a USD 900 billion coronavirus stimulus package deal.
- The relief package will help to fund the urgent needs of Americans covering health, business, and vaccination availability.
The relentless coronavirus pandemic has forced the US Congress to provide further stimulus to the ailing economy. After marathon negotiations, the stimulus deal finally saw the light of day on Sunday, 20 December 2020, when the US lawmakers agreed to settle at a coronavirus relief package worth USD 900 billion.
The long sought and much needed package is finally here, confirmed Senate Majority Leader Mitch McConnell and Minority Leader Chuck Schumer.
Image source: Shutterstock
Understanding Stimulus Package
Though the Congress leaders have reached an agreement on the stimulus package, no statement has been made on over USD 2 trillion legislation, which is expected to be passed soon. The package is crucial to fulfil the urgent health and economic requirements of the Americans.
Meanwhile, the virus cases are increasing in the US, which remains the world's main hotspot. Even after the access to two emergency vaccines for the deadly virus, the country is at the backfoot in the battle against the pandemic.
Reportedly, the number of people who were vaccinated as of Friday, 18 December 2020, was only slightly more than the total cases reported the same day. The condition calls for quicker and more effective measures by the experts.
©Kalkine Group 2020
Must read: FDA greenlights Moderna’s COVID-19 vaccine
Package Details
As confirmed by the Congress leaders, the package includes direct payments of USD 600 per child and USD 600 to most adults. The plan is also designed to aid small businesses which are trying hard to bounce back from the ongoing health and economic crisis.
The leaders have confirmed that the deal incorporates vaccine distribution funds, unemployment bonus, funding for schools, and aid for businesses struggling to pay rent and employees.
The Congress has stated that the relief package will add USD 284 billion to Paycheck Protection Program, the SBA loan facility for small businesses to keep the workforce employed during the pandemic crisis. For small businesses, the package would park an additional USD 20 billion whereas USD 15 billion would be directed to live event venues.
Also read: The US Fed Bats for Further Stimulus, Market Losing Hope?
The USD 900 billion package also includes a federal unemployment supplement worth USD 300. It will temporarily regulate the COVID-19 programs designed for expanded unemployment insurance eligibility.
Though there is no clarity on duration of these measures, the critical funding of USD 30 billion will be directed for acquiring and distributing the two COVID-19 vaccines recently approved by the FDA. Currently, in the first phase of the vaccination, the top government officials and health workers have received the injection shots.
Additional funding will go for aiding overburdened hospitals, USD 82 billion has been earmarked for schools and colleges, USD 13 billion for the Supplemental Nutrition Assistance Program benefits, and USD 25 billion has been set aside for rental assistance.
With the availability of two emergency vaccines already, the stimulus package is set to be a turning point for the pandemic-stricken US and it would be interesting to keep a track of the nation’s future course.
