What the $2 Trillion Stimulus Package Means For New Yorkers
Here's what the $2 trillion coronavirus stimulus package means for New Yorkers and New York businesses.
Late Wednesday, the Senate passed the largest stimulus package in the nation's history. Every senator voted in favor of the bill which is designed to keep the U.S. economy afloat during the coronavirus pandemic. The $2 trillion coronavirus stimulus package will provide economic relief to businesses and individuals affected by the pandemic and provides funds to help the health care system deal with the outbreak.
The bill will deliver over $40 billion to New York State, according to New York Senator Charles Schumer. The Senate Democratic Leader directly negotiated the bill and believes it helps New York address the coronavirus crisis, support our local communities and most importantly put workers first.
“This is not a moment of celebration but rather one of necessity,” Schumer said in a press release. “The more than $40 billion dollars of additional help on the way to New York is essential to save lives, preserve paychecks, support small businesses, and much more. These critical dollars will inject proverbial medicine into our state, city and localities throughout Upstate New York, to deliver much-needed resources, right now, that can help combat the coronavirus. Like all compromise legislation, this bill is far from perfect—but it now does much more for this state, its people and its future than what we began with.”
According to Schumer, the bill will provide the following to New York State:
- Payments of $1,200 for individuals and $2,400 for couples
- Historic expansion and reform of the unemployment insurance program: The extended and expanded unemployment insurance program increases the maximum unemployment benefit amount by $600 per week above one’s base unemployment compensation benefit and ensures that workers who are laid-off or out of work, on average, will receive their full pay for four months, a full quarter.
- Billions of dollars to New York hospitals and medical facilities which will provide personal and protective equipment for health care workers, testing supplies, increased workforce and training, new construction to house patients, emergency operation centers and more. Additional funding is also dedicated to delivering Medicare payment increases to all hospitals and providers to ensure that they receive the funding.
- $7.5 Billion to help stabilize areas hit hardest hit by the virus, like Westchester County which will receive $168 million..
- Relief for small businesses: The plan allocates more than $375 billion to forgivable loans and grants to small businesses and non-profits so they can maintain their existing workforce and help pay other expenses during this crisis, like rent, a mortgage or utilities. The self-employed, independent contractors, and sole proprietors are eligible for assistance. NYS small businesses that currently have over 19,000 existing SBA loans will also have relief from the burden of paying those loans with a new policy of the SBA instead paying the principal, interest, and fees for a 6-month period.
- Money for "emergency appropriations” for hard-hit airports, expanded benefits to SNAP, increased CDBG which helps all our municipalities, funding for child care, of which New York would receive an additional $162 million, nutrition for seniors, nearly $1 billion dollars to help heat homes when income becomes a problem and $1.5 billion for the National Guard to support to the hardest-hit areas
Since Sunday, Schumer made several significant improvements to the bill. According to Schumer, here are some of the improvements:
- 4 months of more unemployment insurance instead of 3 months.
- $55 billion increase in the Schumer Marshall Plan for our Health Care System.
- $6.3 billion for the Strategic National Stockpile for critical medical supplies, personal protective equipment, and life-saving medicine.
- $150 billion for a state and local Coronavirus Relief fund.
- $10 billion for SBA emergency grants of up to $10,000 to provide immediate relief for operating costs once a small business or non-profit has applied for an Economic Injury Disaster Loan.
- $17 billion for SBA to cover 6 months of payments for small businesses with existing SBA loans.
- $30 billion in emergency education funding and $25 billion in emergency transit funding.
- $30 billion for the Disaster Relief Fund to provide financial assistance to state and local governments, as well as private nonprofits providing critical and essential services.
- $30.75 billion for grants to provide emergency support to local school systems and higher education institutions to continue to provide educational services to their students and support the on-going functionality of school districts and institutions.
- Make rent, mortgage and utility costs eligible for SBA loan forgiveness.
- Ban stock buybacks for the term of the government assistance plus 1 year on any company receiving a government loan from the bill.
- Establish robust worker protections attached to all federal loans for businesses.
- Create real-time public reporting of Treasury transactions under the Act, including terms of loans, investments or other assistance to corporations.
- Add a retention tax credit for employers to encourage businesses to keep workers on payroll during the crisis.
- Provide income tax exclusion for individuals who are receiving student loan repayment assistance from their employer.
- Eliminated $3 billion bailout for big oil.
- Eliminated “secret bailout” provision that would have allowed bailouts to corporations to be concealed for 6 months.
- Saved hundreds of thousands of airline industry jobs and prohibited airlines from stock buybacks and CEO bonuses.
The bill now goes to the House.