On early Wednesday morning, the White House and Senate leaders reached a historic $2 trillion stimulus deal. This $2 trillion package comes at a time when the U.S. economy is struggling to deal with coronavirus pandemic.
It is worth mentioning that, stimulus deal is one of the most expensive measures in the history of Congress. Senate majority leader Mitch McConnell made a comment regarding the stimulus package. According to McConnell, the Senate reached a bipartisan agreement on a historic relief package.
The Senate majority leader also mentioned that the Senate plans to approve the beal later in the day on Wednesday.
Based on the preliminary information, the deal includes $250 billion for direct payments to individuals and families. Moreover, the U.S. government plans to spend $350 on small business loans as well as $250 billion in unemployment insurance benefits. Also, the government wants to allocate $550 billion in loans for distressed companies.
Interestingly, the stimulus bill includes one interesting provision. According to this provision, President Donald Trump as well as other top government officials won’t be able to participate in this process. Moreover, this provision also covers members of Congress. It means that the above-mentioned individuals won’t be able to get loans or investments from Treasury programs as part of the stimulus.
Another interesting fact about the stimulus bill is that if it passes Congress, it would be the most serious legislative action to tackle the coronavirus.
Minority leader Chuck Schumer described it as the largest rescue package in American history.
Stimulus deal and Americans
Stimulus deal is a huge success for the U.S. economy. Moreover, this bill will play an important role as the economy is struggling to deal with numerous problems.
It is important to mention that under the plan as it was being negotiated, a person who earns $75,000 in adjusted gross income or less would get direct payments of $1,200. In the case of married couples, who earn up to $150,000 they would receive $2,400. Moreover, they would receive $500 per child.
However, if a person earns $99,000 or more he won’t get any money as part of the stimulus deal. Married couples without children who earn $198,000 or more, also should not expect to receive money.
Health care systems in the U.S. and elsewhere are under pressure as coronavirus continues to spread around the world. Hopefully, this stimulus deal would help to stabilize the situation. Thanks to this bill, hospitals located in areas affected by the pandemic will receive $130 billion. The bill also includes $150 billion for state and local governments that are running out of cash.
Congress, as well as the Senate, should approve this bill. Both chambers should approve the stimulus bill as soon as possible.