Republicans on Thursday released a new draft of the $1 trillion coronavirus stimulus that limits the proposed payments made directly to Americans but keeps loans and bailouts for both small and big businesses.
The new plan carves out billions in loans for the former, many of which have been decimated by the government-mandated self-isolation put in place to stem the spread of COVID-19. Up to $10 million in loans will be available for each individual small business.
Also allotted in the package are $208 billion in loans and bailouts for “severely distressed sectors of the United States economy,” with $50 billion set aside for passenger airline carriers, $8 billion reserved for cargo air carriers, and $150 billion up for grabs for “other eligible businesses.” While the language there is vague, it likely refers to the hotel and casino industry, which President Donald Trump previously said he wanted to assist.
Several modifications have been made to the Tax Cuts and Jobs Act, and airline excise taxes will be lifted. Airline executives will be limited in what they can collect in compensation, and those companies will be required to continue service. The last requirement may generate some pushback: Many small businesses, such as bars and restaurants, have been forced to close their doors or severely limit service as a result of government mandates, which is the reasoning employed by some lawmakers in bailing them out. Instructing airlines to do the opposite sends a confusing message that may complicate efforts to stem the infection rate.
Under yesterday’s version of the stimulus, Americans would have additionally received two checks akin to a Universal Basic Income. Today’s version replaces that with “recovery rebates” for those who make less than to $99,000 a year, with payments tiered on family size, based on an individual’s 2018 tax return. It also curtails the paid leave that a smaller aid package enshrined into law yesterday.
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