Congress Approves Long Awaited Aid Package

Although we are in the early stages of vaccine distribution, the Covid-19 pandemic continues to rage with over 300,000 Americans having lost their lives and millions more finding themselves in economic hardship. For months Congress has been negotiating a new round of aid. Finally, in the last few days of 2020, Congress has agreed to a $900 billion relief package. Though not as robust as the $2.2 billion stimulus from March, hopefully, this new package provides a lifeline for struggling individuals, families, and small businesses. Though it certainly leaves much to be desired.

Set to include:

• Direct payments of $600
  • Some families will also get $600 per child
• $300 billion in small business assistance
  • Including Paycheck Protection Program loans
    • Previous PPP loan recipients are eligible for new funds
    • Some funds will be set aside for the smallest businesses and community lender
  • $20 billion in Economic Injury Disaster Loans
  • $15 billion grants to live venues
• $300 federal unemployment supplement and temporarily keep in place pandemic-era programs that expanded unemployment insurance eligibility. These programs were set to expire on December 26^th
• Specific relief for:
  • Housing
  • Hospitals
  • Education
  • Transportation ($4 billion to the beleaguered MTA)
• Funds for the distribution of the two Food and Drug Administration (FDA) approved Covid-19 vaccines (Pfizer and Moderna).

As part of the compromise, two contentious issues were dropped from the aid package. Republicans agreed to drop a sweeping coronavirus liability shield and Democrats agreed to drop a direct stream of aid to state and local governments. Municipal aid always seemed unlikely which puts places like New York City in a very difficult situation. NYC staples such as tourism and hospitality have been especially devastated by the pandemic. Further, the ability for people to work from anywhere has caused an exodus of high earners and significant revenue. NYC must take measures to right the ship, as painful as that may be. It is not enough to stop the bleeding, elected officials and business leaders must reverse this trend. They must show a dedication to the community and to small businesses.

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