{"id":1170,"date":"2020-03-27T16:44:38","date_gmt":"2020-03-27T20:44:38","guid":{"rendered":"https:\/\/regionslead.org\/?p=1170"},"modified":"2021-07-08T18:41:39","modified_gmt":"2021-07-08T18:41:39","slug":"narc-analysis-cares-act-2","status":"publish","type":"post","link":"https:\/\/narc.org\/2020\/03\/27\/narc-analysis-cares-act-2\/","title":{"rendered":"NARC Analysis: CARES Act"},"content":{"rendered":"\n

This afternoon, the House of Representatives passed The Coronavirus Aid, Relief, and Economic Security (CARES) Act<\/em> (H.R. 748<\/a>) following an earlier vote this week by the Senate. The bill is intended to provide the country with $2.3 trillion of aid to counter the physical and economic effects of the COVID-19 pandemic. This legislation is the third COVID-19 bill to be developed by Congress, following the Coronavirus Preparedness and Response Supplemental Appropriations Act<\/em> (H.R. 6074<\/a>) and the Families First Coronavirus Response Act<\/em> (H.R. 6201<\/a>).<\/p>\n\n\n\n

The CARES Act<\/em>, the single largest economic stimulus package in American history, faced a brief challenge in the House when Representative Thomas Massie (R-KY) attempted to force a recorded roll call vote on the bill. Congressmembers from both sides of aisle traveled quickly to Washington to establish a quorum, denying Massie\u2019s attempt and passing the legislation with a voice vote.<\/p>\n\n\n\n

Following the successful House vote, the bill will now be\nsent to the President, who is expected to quickly sign it into law.<\/p>\n\n\n\n

Below are key items from the CARES Act, including a table\nof top-level figures, and summaries of the legislation\u2019s primary areas of\nsupport, including support for state and local government, transportation,\nindividuals, and businesses.<\/p>\n\n\n\n

Top Level Funding Figures (~$2.3 Trillion Total)<\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

SUPPORT\nFOR STATE AND LOCAL GOVERNMENT<\/strong><\/p>\n\n\n\n

State & Local Government Support (New\nCoronavirus Relief Fund) ($150 Billion)<\/strong><\/p>\n\n\n\n

The legislation provides $150 billion specifically for\nstates, tribes, territories, and some local areas. And provides $8 billion for\nTribes and $3 billion for territories (including, oddly, the District of\nColumbia, which is normally treated as a state for such purposes). Of the\nremaining $139 billion, funds are distributed to each state based on the\nstate\u2019s population relative to the population of the nation as a whole. <\/p>\n\n\n\n

Of the amount each state receives, up to 45% of funds are\navailable to \u201cunits of local governments,\u201d which is defined as a county,\nmunicipality, town, township, village, parish, borough, or other unit of\ngeneral government below the State level with a population of 500,000 or\ngreater. A local area would qualify to receive a portion of funding that is\nequivalent to the proportion the local government\u2019s population bears to the\npopulation of the state as a whole.<\/p>\n\n\n\n

SNAP, Family Services and Housing ($42 Billion)<\/strong><\/p>\n\n\n\n

$25 billion in additional funding will be provided for\nthe Supplemental Nutrition Assistance Program (SNAP) and for other child\nnutrition programs to support states and localities in meeting growing need for\nfood assistance as a result of coronavirus. <\/p>\n\n\n\n

$4 billion in Homelessness Assistance Grants would be\nprovided to state and local governments to address coronavirus among the\nhomeless population.  <\/p>\n\n\n\n

CDBG ($5 Billion)<\/strong><\/p>\n\n\n\n

The bill provides $5 billion through the Community Development Block Grant\nProgram (CDBG) for services for senior citizens, the\nhomeless, and public health services. This includes $2 billion distributed\nusing the normal CDBG formula; $1 billion to states based on a formula\ndeveloped by HUD for COVID-19; and $2 billion to states and localities based on\na formula to be developed by HUD within 30 days.<\/p>\n\n\n\n

FEMA Disaster Relief Funding ($45 Billion)<\/strong><\/p>\n\n\n\n

$45 billion is being provided in funding for FEMA with\n$25 billion going to areas with major disaster declarations, like Washington\nState and New York State. The remaining $15 billion will be used for all\npurposes allowed under the Stafford Act.<\/p>\n\n\n\n

EDA Funding ($1.5 Billion)<\/strong><\/p>\n\n\n\n

The bill allocates $1.5 billion to the Economic\nDevelopment Administration through September 30, 2022. This will help regions mitigate\nthe local economic crisis and rebuild impacted industries such as tourism or\nmanufacturing supply chains.<\/p>\n\n\n\n

USDA-Rural Development Programs ($145.5\nmillion)<\/strong><\/p>\n\n\n\n

The stimulus package provides an additional $20.5 million\nfor the Rural Business Program under the Rural Business Cooperative Service to\nsupport loans for rural business development programs. It allocates $25 million\nfor the Distance Learning and Telemedicine Program which helps provide\nbroadband services to rural communities to support vital distance learning and\ntelemedicine. The bill also provides $100 million in grants to the ReConnect\npilot program to provide broadband services to rural areas to meet the Federal\nCommunications Commission speed standards of 10 Mbps downstream and 1 Mbps\nupstream.<\/p>\n\n\n\n

Dislocated Workers National Reserve ($345\nmillion)<\/strong><\/p>\n\n\n\n

The bill provides $345 million for dislocated workers\n(through September 30, 2022) to prepare for and respond to layoffs resulting\nfrom the COVID-19 pandemic. <\/p>\n\n\n\n

Homeless Assistance Grants ($4 billion)<\/strong><\/p>\n\n\n\n

The stimulus package provides $4 billion to enable state\nand local governments to provide effective, targeted assistance to contain the\nspread of COVID-19 among homeless individuals. It will also provide\nhomelessness prevention funding for individuals and families who would\notherwise become homeless because of the coronavirus pandemic. <\/p>\n\n\n\n

Project-Based and Tenant-Based Rental\nAssistance ($2.25 billion)<\/strong><\/p>\n\n\n\n

The package provides $1 billion for project-based rental\nassistance to make up for reduced tenant payments as a result of coronavirus.\n$1.25 billion for tenant-based rental assistance will be provided to preserve\nSection 8 vouchers for seniors, the disabled, and low-income working families. <\/p>\n\n\n\n

Section 202 Housing for the Elderly ($50\nmillion) <\/strong><\/p>\n\n\n\n

This $50 million in funds will help maintain housing\nstability and services for low-income seniors. <\/p>\n\n\n\n

Section 811 Housing for Persons with\nDisabilities ($15 million) <\/strong><\/p>\n\n\n\n

The bill provides $15 million to make up for reduced\ntenant payments as a result of the coronavirus pandemic. <\/p>\n\n\n\n

SUPPORT\nFOR TRANSPORTATION<\/strong><\/p>\n\n\n\n

In total, the bill provides $114 billion for transportation-related\npurposes, $88 billion of which for aviation-related grants (as well as industry\nloans and loan guarantees). Of the remaining $26 billion, most of that goes to\ntransit ($25 billion) and Amtrak ($1+ billion).<\/p>\n\n\n\n

Transit ($25 Billion)<\/strong><\/p>\n\n\n\n

The bill provides $25 billion for \u201cTransit Infrastructure\nGrants\u201d to allow transit agencies to \u201cprevent, prepare for, and respond to\ncoronavirus.\u201d These funds are treated as if they are provided under 49 U.S.C.\n5307 (Urbanized Area Formula Grants) and 49 U.S.C. 5311 (Formula Grants for\nRural Areas), but are distributed in the same proportion as the funds in fiscal\nyear 2020 appropriations under 5307, 5311, 5337 (State of Good Repair Grants)\nand 5340 (Apportionments based on growing States and high density States\nformula factors). Funds under 5337 are added to 5307 funds and administered\nunder 5307.<\/p>\n\n\n\n

The funds will be distributed in seven days based on\nFY2020 apportionment formulas. The limitation on the use of funds for operating\nexpenses in urban areas is waved. All of the funds, regardless of which program\nthe funds come through, is for \u201creimbursement for operating costs to maintain\nservice and lost revenue due to the coronavirus public health emergency,\nincluding the purchase of personal protective equipment, and paying the\nadministrative leave of operations personnel due to reductions in service.\u201d\nThese additional operating funds DO NOT need to appear in a TIP, STIP, or LRTP\nto quality.<\/p>\n\n\n\n

Finally, the funds for this section are from General\nTreasury Funds, not the Highway Trust Fund, and they are not subject to any\nlimitation on obligations. Eligible projects can be funded with 100% federal\nfunds.<\/p>\n\n\n\n

Harbor Maintenance Trust Fund<\/strong><\/p>\n\n\n\n

The bill contain a provision that impacts new receipts\ninto the Harbor Maintenance Trust Fund, treating these funds as mandatory\nspending not subject to spending caps (and therefore making the funds easier to\nspend; previously, these funds would require a spending offset). This provision\ndoes not affect the spending down of the current HMTF balance (which is $9\nbillion or so), but does prevent the balance from continuing to grow. This\nprovision will take effect on Jan. 1, 2021 or upon passage of the next Water\nResource Development Act (WRDA).<\/p>\n\n\n\n

Amtrak ($1 Billion)<\/strong><\/p>\n\n\n\n

Just over $1 billion is provided for Amtrak, including\n$492 for Northeast Corridor grants and $526 million for National Network\ngrants. Reduces required payment from states for \u201cState-Supported Routes\u201d and\nsets aside $239 million from National Network grants in lieu of an increase in a\nstate\u2019s payment. <\/p>\n\n\n\n

Aviation ($42 Billion [Excluding Loans &\nLoan Guarantees])<\/strong><\/p>\n\n\n\n

Much of the transportation-related funding in the bill is\nprovided for aviation purposes, including $32 billion in direct grants, $46\nbillion for loans and loan guarantees (out of the $500 billion loan and loan\nguarantees program), $10 billion for airport grants, and suspension of\ncollection of Airport and Airway Trust Fund excise taxes for the remainder of\nthe calendar year. In addition, an additional $56 million is provided for Essential\nAir Service.<\/p>\n\n\n\n

General Highway Provision <\/strong><\/p>\n\n\n\n

The bill temporarily allows truck weight limits on the\nInterstate system to be exceeded for trucks carrying emergency supplies, to be\nin place through September 30, 2020 so long as the disaster declaration remains\nin effect.<\/p>\n\n\n\n

SUPPORT\nFOR INDIVIDUALS<\/strong><\/p>\n\n\n\n

Unemployment Benefits ($260 Billion)<\/strong><\/p>\n\n\n\n

The bill changes unemployment insurance benefits in several dramatic ways. The bill provides unemployed workers with their basic state unemployment benefits (about $300 per week) plus a federal supplement of $600 per week for up to four months. The bill also extends state benefits for 13 weeks.  This results in up to 39 weeks of benefits for many workers. In addition, the bill provides incentives for states to waive their waiting periods, and makes unemployment compensation available to part-time, self-employed, and gig workers as well.<\/p>\n\n\n\n

Notably, this bill does not contain an amendment which\nwas requested by many local government partners to remove a provision that\nrequires states, local governments and their political subdivisions and\ninstrumentalities to provide paid sick leave, while prohibiting these\ngovernmental entities from receiving the tax credits available to private\nemployers.<\/p>\n\n\n\n

Stimulus Checks ($290 Billion)<\/strong><\/p>\n\n\n\n

Checks will be sent to Americans in amounts of $1,200 per\nadult and $500 per child. Check eligibility will be phased out above $75,000 of\nincome for individuals and $150,000 of income for couples.<\/p>\n\n\n\n

Tax Reductions for Individuals ($20 Billion)<\/strong><\/p>\n\n\n\n

The bill would provide several tax reduction avenues for\nindividuals including allowing HSA purchases of menstrual Products and\ntemporarily waiving retirement minimum distribution rules.<\/p>\n\n\n\n

SUPPORT\nFOR EDUCATION SYSTEMS<\/strong><\/p>\n\n\n\n

Education Spending ($32 billion)<\/strong><\/p>\n\n\n\n

An education stabilization fund for states, school\ndistricts, & higher education institutions will be provided $31 billion.\nOther Department of Education programs will receive approximately another $1\nbillion in funding.<\/p>\n\n\n\n

SUPPORT\nFOR HEALTH SYSTEMS<\/strong><\/p>\n\n\n\n

Hospitals and Health Care ($180 Billion)<\/strong><\/p>\n\n\n\n

$100 billion of funding in the bill is being put toward\nhospitals responding to COVID-19. Other funding will go to drug access; CDC,\nFDA, NIH, IHS, & other health-related agencies; care for veterans; and the\nreplenishing of the nation\u2019s stockpile of medical supplies.<\/p>\n\n\n\n

SUPPORT\nFOR BUSINESSES<\/strong><\/p>\n\n\n\n

Small Business Support ($377 Billion)<\/strong>
\n
\nSmall business funding will be provided in three ways:<\/p>\n\n\n\n

$10 billion of funding is being provided for Economic\nInjury Disaster Loans (EIDL) for grants up to $10,000 to cover immediate\noperating costs for businesses.<\/p>\n\n\n\n

$350 billion is allocated for the Small Business\nAdministration (SBA) to provide loans of up to $10 million per business. Use of\nthat money is flexible as long as businesses keep their workers employed\nthrough the end of June.<\/p>\n\n\n\n

Lastly, $17 billion will be for the SBA to cover 6 months\nof payments for small businesses with existing SBA loans.<\/p>\n\n\n\n

Large Business Support ($510 Billion)<\/strong><\/p>\n\n\n\n

A large portion of the bill will be used to provide loans\nand loan guarantees for large companies, particularly for those industries\nhardest hit by COVID-19 such as airlines.<\/p>\n\n\n\n

Tax Reductions for Businesses ($280 Billion)<\/strong><\/p>\n\n\n\n

The bill would loosen caps imposed by the Tax Cuts\n& Jobs Act<\/em> on interest deductibility & operating losses, provide\npayroll tax credits for businesses who retain workers at a loss, and delay\nemployer payroll tax payments from 2020 to 2021 & 2022       $12. The bill would also introduce a very\nCOVID-19-specific provision allowing liquor distillers to make hand sanitizer\ntax-free.         <\/p>\n\n\n\n

FURTHER\nREADING<\/strong><\/p>\n\n\n\n

For more information on the CARES Act check out these\nother resources:<\/p>\n\n\n\n