BOSTON (State House News Service) — After Senate leaders and the White House struck a deal in the early-morning hours Wednesday, the U.S. Senate is on track to approve a massive coronavirus relief bill as the virus's impact on the country becomes more pronounced.
Under the bill, the federal government would spend almost $2 trillion in a combination of direct payments to low- and middle-income Americans, state and local government aid, small business support, health care investments and emergency funding. It appears to be the largest economic stimulus package in U.S. history.
Senate Majority Leader Mitch McConnell described the proposed spending as a "wartime level of investment into our nation" in remarks on the floor announcing the overnight agreement.
"It will rush new resources onto the front lines of our nation's health care fight and it will inject trillions of dollars of cash into the economy as fast as possible to help American workers, families, small businesses, and industries make it through this disruption and emerge on the other side ready to soar," he said, according to video posted by The Hill.
Senators are expected to vote on the legislation Wednesday.
Plans in the House are not yet clear. In a statement, House Speaker Nancy Pelosi said the compromise bill "takes us a long way down the road in meeting the needs of the American people," but "does not go as far" as a House version she backed.
"House Democrats will now review the final provisions and legislative text of the agreement to determine a course of action," Pelosi said.
U.S. Rep. Joe Kennedy III of Massachusetts wrote on Twitter that while the country needs immediate relief, the Senate bill "is not nearly enough to meet this crisis."
"We need more robust direct cash relief. Healthcare funding. Medicaid funding. Essential supplies for the front lines," he wrote. "Let’s pass relief now, then come back with more."
According to NBC News, Pelosi is considering using unanimous consent, in which a single objection could stall the bill, to pass the legislation as soon as Thursday without calling members back to Washington.
Senate Democratic leadership is on board after objecting to earlier drafts and calling for more oversight and worker- and family-focused relief.
Minority Leader Chuck Schumer praised the bipartisan agreement and highlighted specific measures that Democrats secured, including establishment of a five-person panel that will work with the inspector general to oversee a $500 billion business loan fund and language that bans companies receiving that support from stock buybacks until one year after the payments stop.
He called the more than $150 billion set for hospitals and for COVID-19 resources a "Marshall Plan for our health care system" and described the bill's aid for laid-off workers, including a $600 increase in the maximum unemployment benefit and his pledge that recipients will on average get four months of full pay, "unemployment insurance on steroids."
"So many people are being put out of work through no fault of their own," Schumer said on the floor. "They don't know what their future is going to be like. How are they going to pay the bills? Well, we come to their rescue, and the most significant part of that is something we are proud to have devised."
In a press release, Schumer outlined many of the changes made to the bill through the negotiation process, such as a prohibition on any businesses controlled by the president, vice president, members of Congress and heads of executive offices from receiving the loans.
Eligible individuals would receive $1,200 checks from the federal government, with married couples receiving $2,400 and parents getting $500 for every child younger than 17. The payments would start scaling down for those who earn more than $75,000 annually, and any individual with an annual income above $99,000 would not qualify for a check, according to multiple media reports.
How Much Money Can I Expect From The Coronavirus Stimulus Package?
Exact state-by-state breakdowns were not available Wednesday, but Massachusetts now appears poised to receive significantly more federal aid. A package passed earlier this month allocated $12 million to the state.
The new bill includes $150 billion for state and local governments and $8 billion for tribal governments, many of which face significant budgeting challenges as tax collections plummet.
Further details on the bill's allocations and impacts were unavailable Wednesday from the offices of Sens. Elizabeth Warren and Edward Markey.
Gov. Charlie Baker on Tuesday stressed the importance of federal action in response to the coronavirus outbreak, criticizing the U.S. Senate for failing to reach agreement on a bill sooner.
Massachusetts can dip into its $3.5 billion "rainy day" savings account—something the governor has predicted is likely—but Washington plays a crucial role in managing the crisis, Baker said.
"State governments, local governments, we have to balance our budgets. Whatever revenue we have, that's what we've got," Baker told reporters. "In the end, the only entity that can truly spend significantly when there's a downturn in the economy is the federal government."
Two other major components of the federal package are $30 billion in emergency education funding and $25 billion in emergency transit funding, Schumer wrote to colleagues.
The MBTA is still running a reduced schedule, but it has been hit hard by the widespread shutdowns in public life. Ridership on the four subway lines and the Silver Line was down more than 80 percent late last week compared to the final week of February, average daily bus trips have dropped roughly 70 percent, and commuter rail use is down about 75 percent.
A T spokesman said Wednesday that the system is likely to face a shortfall in fare revenue—which makes up about a third of the MBTA's total revenue—of $25 million to $35 million in March alone.
MBTA General Manager Steve Poftak said on Monday that the dropoffs would create "significant budgetary impacts, both on the operating and capital sides."
by Chris Lisinski, State House News Service. Michael P. Norton contributed reporting.
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