Congress Reaches a Virus Deal: What's In It?

Mish

A deal is reached. Let's look inside.

After months of bickering, Congress Reaches Final Agreement on Pandemic Relief.

  1. Direct checks are expected to be $600 per adult and $600 per child, with the amounts decreasing for individuals with more than $75,000 in income and $150,000 for couples. Dependents over the age of 16 don't qualify.
  2. Add $300 to weekly unemployment payments for 11 weeks
  3. Extend two other unemployment programs until they begin phasing out in mid-March and end in early April. Those two programs expand the pool of people eligible for unemployment benefits and extend their duration.
  4. $15 billion for airline payroll support.
  5. Roughly $280 billion would go toward the Paycheck Protection Program.
  6. $325 billion goes toward small businesses.
  7. Theater operators and owners of small performance venues would be eligible for $15 billion in grants.
  8. Schools would receive $82 billion under the agreement, and $10 billion would go toward child care.
  9. The deal would also include $25 billion in rental assistance 
  10. Moratorium on evictions extended
  11. $30 billion for the procurement and distribution of a vaccine, as well as testing and tracing. 
  12. $1.8 billion in tax credits for businesses to provide paid leave.
  13. Ability for businesses to deduct restaurant meals.
  14. Renewable-energy breaks, including incentives for wind energy and carbon capture, would get temporary extensions.
  15. Extend a tax credit for retaining employees and make it available to PPP recipients. 
  16. The remaining funding previously provided to the Treasury Department to backstop losses in Fed lending programs would be revoked, and the Fed wouldn’t be able to replicate identical emergency lending programs next year without congressional approval. The compromise will ensure the Fed and the Biden administration can’t restart the lending programs “by creating a clone and calling it something different,” Senator. Toomey told reporters Sunday.
  17. The final package would also prevent patients from receiving surprise medical bills, including from air ambulance rides. Surprise billing typically occurs when a patient is treated at a hospital in his or her insurance network by a medical professional who isn’t, potentially leading to crippling medical charges.
  18. Pell Grants
  19. $1 billion in federal loan forgiveness for Historically Black Colleges and Universities
  20. Climate change items such as reducing chemicals used in air-conditioners and refrigerators.

What's Not?

  1. Funding for hard-hit state and local governments, a Democrat priority. 
  2. Liability protections for businesses and other entities operating during the pandemic, a GOP priority.

“Once this deal is signed into law, it cannot be the final word on congressional relief,” Mr. Schumer said on the Senate floor. “There’s more to do in the new year, with a new administration that has a much more favorable attitude toward giving the American people the help they need.”

Democrats Got Far Less Than They Wanted

Democrats got far less than they wanted, and even much less than what McConnel offered before the election. 

Republicans are poised to hold the Senate and have insisted on no state bailouts.

Big Winners

The big political winner is Senate Majority leader Mitch McConnell. This is the compromise deal he proposed many weeks ago. 

Other big winners include those who are working yet receive blanket checks anyway.

Despite months of wrangling, Republicans and Democrats did not come up with a way to target the funds better. 

Big Losers

Landlords who have tenants who don't pay the rent have continued pain until March 1.

Addendum Additions

Added points 18-20 to "What's In It?" section above.

Addendum 2

The eviction moratorium extends through February 28. I modified a sentence above that read March or April depending on final agreement.

Addendum 3

Covid Bill is 5593 Pages Long

Apologies for not knowing precisely what was in the bill, but I am sure no one else did either, or still does, except the lobbyists who wrote it.

The bill is 5593 pages long and was sent out as a corrupted file.

Mish

Comments (33)
No. 1-13
goldguy
goldguy

I don't expect the economy to pick up next year so we can expect more of the same moving forward. Another benefit will be gold price will be going up. I just don't see how we get any GDP other than what they print.

jivefive98
jivefive98

Ive just reconfigured my budget to not expect any rent for awhile from one tenant. We little guys havent got PR group in Washington.

PecuniaNonOlet
PecuniaNonOlet

Wow, what a laundry list of free money and grants to almost everyone except those making more than 75k/150k, capitalism is officially dead.

While the vaccine is out, I have my doubts that it will fix anything in 2021.

I suspect people that get vaccinated will feel invincible and not bother wearing masks or social distance which will be 10x worse than what we have now. I say we are in full blown panic mode with 600k+ deaths by April, I hope to god I am wrong.

Dodge Demon
Dodge Demon

Mish, remember the Harvest Gold, Avocado Green and Coppertone “Frigidaire By GM” refrigerators from the 50s and 60s? Those lasted forever and you can still find them in old apartment buildings. People just got rid of them because they were too lazy to clean them or tired of the colors. Yeah, a new stainless steel one shipped from China that will be in a landfill in 5 years is better for climate change.

Call_me_Al
Call_me_Al

Pretty generous of Schumer to promise more freebies to the people, and it isn't even an election year!!

In the spirit of the season, could you get Oprah to read off this list?

JonSellers
JonSellers

The real winners will be Amazon and Chinese workers.

Sechel
Sechel

The airlines have better lobbyists than I would have suspected. For an industry that really isn't all that essential , has capital tools at is disposal and has made tons of mistakes I get apoplectic just seing the 15 billion number. I'm far ore forgiving with mass transit which is not a for profit business and benefits lower income and working class people far more.

njbr
njbr

Three-martini lunch tax break come back into existence, in exchange for additional tax credits for working poor and low income families.

njbr
njbr

BEIJING (Reuters) - China’s manufacturing recovery, fuelled in part by demand from COVID-constrained consumers abroad, has soared past expectations this year, so much so that factories are now struggling to fill a shortage of blue-collar workers to clear mounting orders.

The country’s output of industrial robots, computer equipment, and integrated circuits has roared back from its coronavirus paralysis - production for the year to November is up 22.2%, 10.1% and 15.9%, respectively.

Much of the manufacturing boom has come from foreign demand, with export growth topping expectations for eight of the last nine months.

The remarkable turnaround comes as China has mostly eradicated the virus and contrasts with the sluggish comebacks seen in major industrialised peers, where factories are still struggling with pandemic disruptions and the hit to demand.

China’s global export share increased to over 13% in the second and third quarters from 11% last year, according to Nomura, the highest for any quarter since at least 2006 when the investment bank started compiling the data.

While emergency stimulus in the United States and Europe pumped money into consumers’ wallets, the fight to contain the virus in those markets fired up demand both for China-made PPE goods and gadgets for westerners stuck at home.

Mish
Mish

Editor

The eviction moratorium extends through February 28. I modified a sentence read March or April depending on final agreement.

Dodge Demon
Dodge Demon

Will the aid to Pakistan include new bathrooms for every letter of the alphabet?


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