Deciphering what IS and ISN’T in latest COVID-19 package

From the Raising Women's Voices :

Today, Congress is expected to give final approval to a $2.2 trillion relief package designed to respond to both the health and economic crises created by the COVID-19 pandemic. The president has said he will sign it. Called the Coronavirus Aid, Relief and Economic Security Act (CARES Act), the package is also known as “phase 3” because two earlier COVID-related funding bills have already been enacted (including one we covered last week), this week’s package is the largest spending bill (by far) ever passed in the United States — 2.8 times bigger than the 2009 stimulus package. The bill came together quickly over the course of 10 days and was negotiated largely without public input. 

There have been conflicting reports about what the package does and does not do, and we may not know for weeks what certain provisions mean in practice or how the administration is going to implement them. But we can give you a sense of the top line impact on women and families. 

Based on our initial reviews of the legislation, the bill does the following things: 

• Creates a new unemployment benefit of $600 per week (called Federal Pandemic - Unemployment Compensation) on top of existing state benefits, effective from April through the end of July. Part-time, self-employed, gig economy workers and those with limited work histories are covered even if they would not otherwise be eligible for existing unemployment benefits. This is particularly important for women, who are more likely to serve as family caretakers, work part-time, work as independent maids, nannies, or home health aides or otherwise engage in work that doesn’t make them eligible for traditional unemployment. The package also includes an extra 13 weeks of coverage for workers who have already exhausted existing benefits.  The new benefit would be taxable (as existing benefits are) but would not count against income eligibility for Medicaid or CHIP. We don’t yet know whether it would affect eligibility for financial assistance (premium support) for ACA health coverage. Because the benefit comes on top of state unemployment assistance, some workers could see their weekly pay increase over what they would have earned while working. There hasn’t been much discussion yet about what that would mean for the ACA, but it could create a situation where some current ACA enrollees have to pay back a part of their premium support next year, absent a congressional fix. 
  
• Makes a one-time direct payment of $1,200 per adult ($2,400 per couple) and $500 per dependent child (on top of any unemployment received). The benefit phases out for individuals earning more than $75,000 (or $150,000 per couple) and will be distributed as an advance refund (in the form of checks or direct deposit). To receive the benefit, individuals must have filed a tax return in 2019 or 2018. Separately, the IRS has extended the 2019 tax filing deadline to July 15.   The disturbing news is that limiting eligibility to people who have filed a tax return ensures that a number of low-income and homeless individuals will never benefit, although the IRS may work with other safety net agencies to distribute checks. Just as troubling, it appears that millions of immigrant families may be excluded from receiving the benefit even if they file federal taxes. The Miami Herald reports that “if someone lives in a “mixed-status” household — meaning that if anyone in the family (tax filers and their children) uses an ITIN — an individual taxpayer identification number — rather than a Social Security number, the family does not qualify for the relief payment.”  
  
• Creates a $504 billion bailout fund for large businesses, with a special focus on airlines. The legislation nominally prevents bailed-out firms from boosting executive salaries or using the funds for stock buybacks, and prohibits the president, vice president, federal lawmakers, cabinet members, or their close family members from benefiting from the program. But it’s not clear how tightly drafted the language is or how well those rules will be enforced. 
  
• Creates a separate $377 billion fund for small businesses and non-profits (under 500 employees) through zero-interest loans which can be forgiven if the funds are used for “covering employee salaries, rent, paid leave, utility payments, health insurance premiums or other necessities or worker protections,” according to the Washington Post. Republicans initially tried to exclude all health care non-profits that accept Medicaid reimbursement in an effort to block Planned Parenthood clinics from receiving funds. While that provision was scrapped, there are conflicting reports about whether individual Planned Parenthood affiliates will be eligible as small entities or whether the Small Business Administration will exclude them by arguing that they’re part of the larger national organization. 
  
• Includes $175 billion in emergency aid to states and local governments and $180 billion for health care infrastructure, of which $100 billion is set aside for grants to hospitals, public and nonprofit health organizations and Medicare and Medicaid suppliers hardest hit by the outbreak. Funds can be used for personal protective equipment like masks and gowns, testing supplies, ventilators, and more. 
  
• Gives states $400 million to help prepare for holding the 2020 elections in the midst of a pandemic by expanding absentee voting and adding polling locations to reduce lines — although the amount is far less than what’s needed. Primary elections have been delayed in 13 states over health concerns and although states don’t have the authority to delay federal elections absent congressional action, the delays have raised red flags for experts. A House version included critical language mandating a nationwide vote-by-mail option and days of early voting that advocates should continue to push for. While it’s impossible to know how the pandemic will affect the elections, everyone deserves a safe way to vote. 
  
• Includes a smattering of smaller scale health  provisions, including expanding coverage for testing and a future vaccine, changing what health savings accounts (HSAs) can cover (by adding menstrual products and non-prescription drugs, among other things), and increasing and extending funds (set to expire in May) for community health centers and other agencies and programs. Health Affairs discusses these provisions in more detail here. Importantly, the bill also clarifies language from the “phase 2” package to ensure that Medicaid recipients with limited benefits (for example, those only receiving pregnancy-related coverage) will have access to COVID-19 services. 
  
• And much more. Other provisions of the bill include a short-term pause on student loan payments without accruing interest, a pause on credit reporting, limited mortgage forbearance, support for farmers and food banks, additional funding for the Supplemental Nutrition Assistance Program (SNAP, or food stamps), though no boost in SNAP benefits, changes to the tax code, funds for public transit systems, and more.
  

As massive as the package is, however, it almost certainly doesn’t go far enough in helping families, funding health care or preparing for the future. One indication of how deep the looming recession is likely to be: initial unemployment claims spiked to 3.3 million last week, more than quadrupling the highest number of initial jobless claims ever recorded in the US. (For contrast, initial unemployment claims peaked at 665,000 during the Great Recession.) 

Members of Congress are already talking about a possible “phase 4” COVID-19 package. But alarmingly, both chambers are preparing to recess for weeks without a clear plan in place for how to vote (or meet with constituents) in the face of this once-in-a-century pandemic. What happens if our senators and representatives can’t fly back to Washington for a vote? How can Congress hold the Trump administration accountable for their disastrous handling of the pandemic, or push for increased production of health care equipment, if they aren’t here?