On April 24th, President Trump signed a new relief package from Congress totaling roughly $480 billion.
President Trump signaled on Twitter that there are more fiscal relief packages on the way, including those aimed at helping state and local governments recover lost revenues due to COVID-19, infrastructure investment, and payroll tax cuts, among others.
The relief package is aimed at three key areas:
- Small businesses
- Hospitals/healthcare providers
- Expanded COVID-19 testing
Small Business Relief: $310 Billion
- The bill adds an additional $310 billion to the Paycheck Protection Program (PPP). The need for additional funding for the PPP became clear last week when the program ran out of funds.
- $60 billion of the $310 billion will be set aside for smaller lending facilities, including “community financial institutions, small insured depository institutions, and credit unions with assets under $10 billion.”
Healthcare Providers/Hospitals: $75 Billion
- $75 billion to “prevent, prepare for, and respond to coronavirus, domestically or internationally,” and to cover reimbursements to providers and hospitals for healthcare-related expenses or lost revenues attributable to COVID-19. These funds can also be used to cover the cost of building temporary structures, leasing properties, medical supplies, and equipment. It’s unclear if this amount will be sufficient to offset the financial losses suffered by hospitals and healthcare providers. Projects suggest that the coronavirus pandemic could cost U.S. hospitals and healthcare providers anywhere from $362 billion to nearly $1.5 trillion.1
COVID-19 Testing: $25 Billion
- $25 billion will be allocated “for necessary expenses to research, develop, validate, manufacture, purchase, administer, and expand capacity for COVID-19 tests.”
- Of that $25 billion, $11 billion is earmarked for states and localities; the rest will be given to other entities (including federal agencies). The bill requires states and localities to have a “strategic plan…for testing and increasing testing capacity” in order to access the funds.
Other Features Of The Package
- The bill also provides funding for $50 billion in disaster recovery loans, $10 billion in grants through the Emergency Economic Injury Disaster Loan Program, and $2.1 billion salaries and expenses incurred by the Small Business Administration.2