President Signs COVID Relief/Government Spending Package into Law

President Trump signed a $2.3 trillion funding package into law, which includes $1.4 trillion in government funding and $900 billion in COVID relief. The legislation extends the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) and clarifies PPP expenses as tax deductible. The bill also provides $600 stimulus checks for adults and dependents, restores $300/week in additional unemployment assistance, increases SNAP benefits by 15 percent for six months (but does not expand eligibility), and allocates $20 billion in new targeted economic injury disaster loans (EIDL) for low-income communities. Please note that the bill does not include an extension of the Paid Sick and Family Leave Mandate which expired December 31st. However, the legislation does provide a refundable tax credit that allows businesses the option to offer paid leave, but it is no longer mandatory, and the provision expires in March 2021. Congressional leaders, however, could not reach an agreement to include Democratic priorities for additional state and local government aid and Republican’s liability protections. In signing the bill, President Trump still demanded Congress replace the $600 stimulus payments with $2,000, although it is unlikely to have enough votes to pass.

The COVID relief/government spending passage marks the end of an eventful month in Washington, DC. However, Congress still has one outstanding action on its plate before the 117th Congress begins. Congress is expected to hold a vote to override the President’s veto of the Fiscal Year 2021 National Defense Authorization Act (NDAA).

By EMA