Skip to Content

Here’s what’s in the House Democrats’ stimulus relief plan

The House has passed the Democrats’ massive coronavirus relief package, bringing President Joe Biden’s stimulus proposal one step closer to reality.

Most — but not all — of the measures in the 591-page bill adhere closely to what Biden outlined in his $1.9 trillion relief proposal last month.

The legislation could face hurdles in the Senate, where Democrats can’t afford to lose a single member of their party thanks to the 50-50 split in the chamber.

Time is of the essence. An estimated 11.4 million workers will lose their unemployment benefits between mid-March and mid-April unless Congress passes its next coronavirus relief package in coming weeks, a recent study by The Century Foundation found.

Here’s what’s in the bill:

Stimulus checks

The House bill would provide direct payments worth up to $1,400 per person. A family of four could receive up to $5,600.

Individuals earning less than $75,000 a year and married couples earning less than $150,000 would be sent the full amount.

But not everyone who received a previous stimulus check would be eligible for this round. The payments would phase out faster and completely cut off individuals earning more than $100,000 and families earning more than $200,000.

The payment will be calculated based on either 2019 or 2020 income. Unlike the previous two rounds, adult dependents would be eligible for the payments.

Unemployment assistance

The House bill would extend two key pandemic unemployment programs through August 29. It would also increase the federal weekly boost to $400, from the current $300, and continue it for the same time period.

It would lengthen the duration of the Pandemic Unemployment Assistance program to up to 74 weeks, from 50 weeks, and the Pandemic Emergency Unemployment Compensation program to 48 weeks, from 24 weeks.

The former provides benefits to freelancers, gig workers, independent contractors and certain people affected by the pandemic, while the latter increases the duration of payments for those in the traditional state unemployment system.

The President’s plan had called for continuing the benefits through the end of September.

Out-of-work Americans will start running out of Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation benefits in mid-March, when provisions in December’s $900 billion relief package begin phasing out.

The $300 enhancement also ends in mid-March.

Nutrition assistance

The House plan would extend the 15% increase in food stamp benefits through September, instead of having it expire at the end of June.

It also contains $880 million for the Special Supplemental Nutrition Program for Women, Infants, and Children, known as WIC, to help increase participation and temporarily improve benefits, among other measures. Biden called for investing $3 billion in the program.

And it would allow states to continue the Pandemic-EBT, which provides families whose children’s schools are closed with funding to replace free- and reduced-price meals the kids would have received, through the summer.

Housing aid

The legislation would send roughly $19.1 billion to state and local governments to help low-income households cover back rent, rent assistance and utility bills.

About $10 billion would be authorized to help struggling homeowners pay their mortgages, utilities and property taxes.

It would provide another $5 billion to help states and localities assist those at risk of experiencing homelessness.

Tax credits for families and workers

The legislation beefs up tax credits for families and certain low-income workers for 2021.

In an effort to combat poverty, it would expand the child tax credit to $3,600 for each child under 6 and $3,000 for each child under age 18. Currently, qualifying families can receive a credit of up to $2,000 per child under age 17.

The credit would also become fully refundable so more low-income parents could take advantage of it. Plus, families could receive payments monthly, rather than a lump sum once a year, which would make it easier for them to pay the bills.

The bill also enhances the earned income tax credit for workers without children by nearly tripling the maximum credit and extending eligibility to more people. The minimum age to claim the childless credit would be reduced to 19, from 25, and the upper age limit would be eliminated.

This would be the largest expansion to earned income tax credit since 2009.

Optional paid sick and family leave

Unlike Biden’s proposal, the House bill would not reinstate mandatory paid family and sick leave approved in a previous Covid relief package. But it does continue to provide tax credits to employers who voluntarily choose to offer the benefit through October 1.

Last year, Congress guaranteed many workers two weeks pay if they contracted Covid or were quarantining. It also provided an additional 10 weeks of paid family leave to those who were staying home with kids whose schools were closed. Those benefits expired in December.

Education and child care

The bill would provide nearly $130 billion to K-12 schools to help students return to the classroom. Schools would be allowed to use the money to update their ventilation systems, reduce class sizes to help implement social distancing, buy personal protective equipment and hire support staff. It would require that schools use at least 20% of the money to address learning loss by providing extended days or summer school, for example.

The money is also intended to help prevent teacher layoffs next year when some states may be struggling to balance their budgets. The pot of money will remain available through September 2023.

The Democratic bill is in line with what Biden proposed, but calls for more than six times the amount of funding for K-12 schools than a compromise plan offered by a small group of Republican senators.

The House bill now includes nearly $40 billion for colleges. Institutions would be required to spend at least half the money to provide emergency financial aid grants to students.

Altogether, $170 billion would be authorized for K-12 schools and higher education. Last year, Congress approved a total $112 billion between two relief packages that went to K-12 schools and colleges.

The bill would also provide $39 billion to child care providers. The amount a provider receives would be based on operating expenses and is available to pay employees and rent, help families struggling to pay the cost, and purchase personal protective equipment and other supplies.

Health insurance subsidies and Medicaid

The bill would make federal premium subsidies for Affordable Care Act policies more generous and would eliminate the maximum income cap for two years.

Enrollees would pay no more than 8.5% of their income towards coverage, down from nearly 10% now. Also, those earning more than the current cap of 400% of the federal poverty level — about $51,000 for an individual and $104,800 for a family of four in 2021 — would become eligible for help.

In addition, the legislation would bolster subsidies for lower-income enrollees, eliminating their premiums completely, and would do the same for those collecting unemployment benefits in 2021.

The bill would also provide assistance for those who want to remain on their employer health insurance plans through COBRA. These laid-off workers would pay only 15% of the premium through the end of September, though that can still prove costly.

Also, the legislation seeks to entice states that have yet to expand Medicaid to low-income adults to do so by boosting their federal Medicaid matching funds by 5 percentage points for two years.

More money for small businesses

The bill would provide $15 billion to the Emergency Injury Disaster Loan program, which provides long-term, low-interest loans from the Small Business Administration. Severely impacted small businesses with fewer than 10 workers will be given priority for some of the money.

It also provides $25 billion for a new grant program specifically for bars and restaurants. Eligible businesses may receive up to $10 million and can use the money for a variety of expenses, including payroll, mortgage and rent, utilities and food and beverages.

The Paycheck Protection Program, which is currently taking applications for second-round loans, would get an additional $7 billion and the bill would make more non-profit organizations eligible.

Another $175 million would be used for outreach and promotion, creating a Community Navigator Program to help target eligible businesses.

Aid to states

The House legislation would provide $350 billion to state and local governments, as well as tribes and territories.

States and the District of Columbia would receive $195.3 billion, while local governments would be sent $130.2 billion to be divided evenly between cities and counties. Tribes would get $20 billion and territories $4.5 billion.

Additional assistance to states has been among the most controversial elements of the congressional rescue packages, with Democrats looking to add to the $150 billion in the March legislation and Republicans resisting such efforts. The December package ultimately dropped an initial call to include $160 billion.

Vaccines and testing

The House bill provides $14 billion to research, develop, distribute, administer and strengthen confidence in vaccines. It would also put $47.8 billion towards testing, contact tracing and mitigation, including investing in laboratory capacity, community-based testing sites and mobile testing units, particularly in medically underserved areas.

It would also allocate $7.6 billion to hire 100,000 public health workers to support coronavirus response.

The legislation also provides $50 billion to the Federal Emergency Management Agency, with some of the funds going toward expanding vaccination efforts.

The President’s plan called for investing $20 billion in a national vaccination program.

Minimum wage

The House legislation would increase the federal minimum wage to $15 an hour by 2025 in stages. It would also guarantee that tipped workers, youth workers and workers with disabilities are paid the full federal minimum wage.

The plan would raise the wages of 27 million workers, according to the Budget Committee.

But the Senate parliamentarian has ruled against allowing the increase to be included in the Senate version of the bill under the budget rules Democrats plan to use, an aide familiar with the process and two sources with direct knowledge of the situation tell CNN. That means that the wage increase won’t survive into the final version of the bill even if passed by the House.

This story has been updated with House passage of the stimulus bill.

CORRECTION: An earlier version of this story misstated the total amount allocated for vaccine research in the final legislation passed by the House. It was $47.8 billion.

Article Topic Follows: Politics

Jump to comments ↓

Author Profile Photo

CNN Newsource

BE PART OF THE CONVERSATION

KIFI Local News 8 is committed to providing a forum for civil and constructive conversation.

Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here

If you would like to share a story idea, please submit it here.

Skip to content