Phase 2 Passed and Estimated to Provide $100 Billion in COVID-19 Relief Efforts | Chamber Moving to Support Phase 3
Yesterday, “Phase 2” of federal Coronavirus relief efforts was passed by the Senate and approved by President Trump. The legislation is estimated to provide roughly $100 billion in relief for those infected by COVID-19 as well as businesses and workers who are otherwise impacted.
The legislation includes the following reforms:
The legislation includes the following reforms:
- Businesses with fewer than 500 employees will now offer two weeks of paid sick leave for employees infected with COVID-19. However, some small businesses (fewer than 50 employees) may be able to opt-out of providing paid sick leave to infected employees if they can show the viability of their business would be jeopardized by the measure. This provision expires at the end of 2020.
- Parents with children whose schools have been shut down as a precautionary measure to prevent further spread of COVID-19 will be eligible for up to three months of paid family leave. This provision also expires at the end of 2020.
- Increased funding for various food assistance programs (Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), the Emergency Food Assistance Program, nutrition assistance grants for U.S. territories, and programs that assist the elderly) while suspending the work requirements for the Supplemental Nutrition Assistance Program (SNAP).
- Allows schools experiencing temporary closure to serve meals to students
- Free testing for the coronavirus
- Enhanced unemployment insurance
Senate Majority Leader Mitch McConnell indicated the need to pass this relief package while also crafting a larger piece of legislation aimed at further supporting American workers and businesses. This “Phase 3” of COVID-19 relief would likely be voted on early next week.
A precise draft of the legislation has not been released yet, but anywhere from $850 billion to $1.3 trillion has been proposed in additional stimulus. Among the proposals to aid workers, small business, and the airline/travel industry are outlined below:
- $500 billion to $550 billion in direct payments to the American people ($1,000/adult, $500/child)
- $200 billion to $300 billion in small business assistance
- $150 billion to “severely distressed sectors” of the economy
- $50 billion to $100 billion in loans to the airline industry
The Chamber supports additional measures to provide economic relief for businesses and employees. We wrote a letter to Senators John Cornyn and Ted Cruz earlier this week indicating the business community’s need for support during this time. You can add your name to that letter here.
As always, we will monitor any legislative action and keep you, your family, and your business informed with the latest. In the meantime, please visit our COVID-19 resource page, which is constantly being updated with information regarding important health guidelines as well as local business support efforts.
As always, we will monitor any legislative action and keep you, your family, and your business informed with the latest. In the meantime, please visit our COVID-19 resource page, which is constantly being updated with information regarding important health guidelines as well as local business support efforts.
