Most Americans Will Get $1,200 From the Coronavirus Stimulus Package

Early Tuesday morning, after prolonged negotiations between Republicans, Democrats, and the Trump administration, the Senate announced a deal on an emergency stimulus in response to the coronavirus outbreak. The legislation hasn't been made available to the public or to journalists yet, but The New York Times reports that it's expected to be enacted within days.

Of most pressing concern to many Americans, both working and not, is the cash relief. Anyone making up to $75,000 a year is eligible for a one-time payment of $1,200, and that amount tapers down to zero for anyone making more than $99,000 a year. All told, that represents more than 69 percent of American households. Families can also expect $500 per child. And unemployment benefits as a result of the pandemic are also being extended by 13 weeks and expanded to $600 per week for four months. It also provides more than $300 billion in loans for small businesses. Appearing on MSNBC on Wednesday morning, Schumer said that Massachusetts senator Elizabeth Warren was instrumental in editing the legislation to include anticorruption measures.

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The stimulus still includes a $500 billion bailout for businesses, though in a letter to Senate Democrats, Minority Leader Chuck Schumer said that the party won some concessions for more oversight and restrictions on those funds. Businesses that accept the money must temporarily halt stock buybacks (a practice where companies repurchase their own stock, a move that often makes businesses look more profitable), and the deal bars any businesses owned by the Trump family, or the families of other senior officials, from receiving those funds.

But as David Dayen, writing in American Prospect, points out, the oversight structure is very similar to the much-criticized 2008 TARP bailout: "a five-member oversight panel and an inspector general for the program." He added that "oversight is largely after the fact, without subpoena power, and mainly reduced to writing reports." It also seems like companies getting bailouts have no requirements on executive compensation or keeping workers hired. Neither does it look like there will be an equity stake for the public. As Matt Bruenig notes for progressive think tank People's Policy Project, "any other investor would require equity in exchange for the kind of investment the government is being asked to make," and "there is no reason why the public should be suckers."

Former labor secretary Robert Reich reviewed the bill in short on Twitter, describing it thusly:

The stimulus also reportedly provides more money to hospitals ($130 billion) dealing with the pandemic, and another $55 billion to state and local governments. Some are already questioning whether the allocation makes sense: Governor Andrew Cuomo says New York state—where infection rates are soaring, due to the fact that it has the country's most population-dense city—is only getting a "drop in the bucket" with about $5.3 billion. This bill passed almost two months to the day after senators were first briefed on the potential threat of the coronavirus (two legislators promptly sold stock to avoid losing money as the market tumbled). As Schumer said on the Senate floor: “Like all compromises, this bill is far from perfect.”

Originally Appeared on GQ