The Senate will vote on the $2-T package later Wednesday and the House of Representatives is expected to follow suit soon after.
“This is a wartime level of investment into our nation,” Republican Senate Majority Leader Mitch McConnell said in a speech announcing the pact after days of negotiations between Republican and Democratic lawmakers, Treasury Secretary Steven Mnuchin and other Top aides to President Trump.
“We are going to pass this legislation later today,” Leader McConnell said.
Senate Democratic Leader Chuck Schumer (NY) called the measure “the largest rescue package in American history,” describing it as a “Marshall Plan” for hospitals and medical needs, in a reference to the US-funded program that helped rebuild Europe after WWII.
“Help is on the way, big help and quick help,” Senator Schumer said.
The text of the pact was not due to be available until later Wednesday.
Leader McConnell said the package would rush checks to help Americans pay bills during job layoffs related to the outbreak, expand unemployment insurance and deliver emergency loans to small businesses.
It will also “stabilize Key national industries” and provide financial help for hospitals and healthcare providers struggling to get equipment for sick patients, he added.
The stimulus package is expected to boost the economy with a massive infusion of aid, including a $500-B fund to help hard-hit industries with loans and a comparable amount for direct payments of up to $3,000 to millions of American families.
Other provisions are expected to include $350-B for small-business loans and $250-B for expanded unemployment aid.
Senator Schumer said the bill also includes $100-B for hospitals and health systems, along with additional money for other healthcare needs.
Another $150-B would go to help state and local governments fight the outbreak.
The money at stake in the stimulus legislation exceeds the amount the United States spends on national defense, scientific research, highway construction and other discretionary programs, combined.
Tuesday, investors welcomed news that agreement on the package was near. Wall Street rallied Tuesday from Bear territory on word The Trump Team negotiators were close to a deal.
Treasury Secretary Mnuchin told reporters after the agreement was announced that President Trump “absolutely” would sign it if it passed Congress.
The package “is going to be very important to help American workers, American businesses and people across America,” he added.
Secretary Mnuchin urged House Speaker Nancy Pelosi (D:CA) to quickly schedule a vote on the measure once it clears the Senate.
Speaker Pelosi, the Top Democrat in Congress, did not immediately respond to a request for comment when the deal was announced well after Midnight.
Early Wednesday, parts of the bill were still being written by legislators but below is a rundown of what we do know about what is in the deal aimed specifically at the businesses community.
“We are going to back the airlines 100%,” President Trump said last week about one of the industries hit hardest by the ongoing crisis.
The deal reportedly includes $50-B specifically for passenger airlines, $8-B for cargo airlines, and $17-B “for firms that are deemed important to national security.”
Other impacted industries, from the cruise industry to hotels to restaurants, have a range of ways to get government cash.
Previous stimulus efforts put $50-B aside for the Small Business Administration. That “money’s already starting to be approved.”
This deal ramps things up aggressively with hundreds of billions of dollars in loans now expected to be available in the coming weeks and months.
Businesses of all sizes, many of whom are currently facing the prospect of mass bankruptcies will be able to participate in the different programs.
Hundreds of billions more dollars in the deal will also indirectly flow to businesses.
The deal also includes a massive expansion of unemployment insurance for 4 months. It has been dubbed “unemployment compensation on steroids” and says that the federal government will pay the full salary of workers who are laid off as a result of the crisis.
The plan also includes a massive infusion of cash into the healthcare industry. Healthcare providers, community health centers, and hospitals are set to receive over $130-B dollars to fight the virus while states and localities are set to receive another $150-B.
Overall, The Trump Administration is hoping that the deal will set the stage for a robust economic recovery. “If we get this package, we will be setting the stage for a good rebound in the 2nd half of the year” said Larry Kudlow, the White House’s Top economic adviser, told reporters Tuesday before the deal was finalized “that’s our thinking.” Stay tuned…
Have a healthy day, stay at home!