Lawmakers, however, are already
calling for more.
The full Senate passed by a 96-0 vote late
Wednesday a $2.2 trillion relief package, which includes a temporary waiver of required minimum distribution rules for
certain defined contribution plans and IRAs for calendar year 2020.
The Coronavirus Aid, Relief, and Economic
Security, or CARES Act, now heads to the House. House Majority Leader Steny
Hoyer, D-Md., said the full House will consider the bill on Friday.
The 883-page CARES Act provides direct payments to individuals,
$350 billion for small-business relief/paycheck protection, four months of
increased unemployment insurance, $500 billion in relief for affected
industries (including a credit facility that could provide more than $4
trillion in loans and loan guarantees), $150 billion for state and local
governments, and an estimated $150 billion for health care, explains Ed Mills,
policy analyst for Raymond James.
Senate Majority Leader Mitch McConnell, R-Ky.,
tweeted after the vote: “The Senate just pivoted from one of the most divided
periods in recent memory to passing the largest rescue package in American
history. And we passed it unanimously. Americans deserved this outcome. I am
proud the Senate stepped up.”
Lawmakers, however, are already calling for
another stimulus boost.
Sen. Elizabeth Warren, D-Mass., tweeted late
Wednesday after the vote that: “We face a public health crisis that threatens
to bring another Great Depression. Families, hospitals, & small businesses
need immediate aid. This is not the bill I wanted, but its immediate
investments are vital. They are also insufficient. We will need to do more –
and soon.”
In a briefing Wednesday, Gov. Andrew
Cuomo of New York said the bill would be “really terrible” for his state, where
hospitals have been overwhelmed by coronavirus cases.
“What
does it mean for New York state?” he asked. “It means $3.8 billion. $3.8
billion sounds like a lot of money, but we’re looking at a revenue shortfall of
[as much as] $15 billion.This response to this virus has probably already
cost us $1 billion, and it will probably cost us several billion dollars when
we’re done.”
Rep. Don Beyer, D-Va., vice chair of the Joint
Economic Committee, said the unemployment numbers reported by the Labor
Department for the week ending March 21 — a record 3.28 million — offered the
“first real look” at how the coronavirus has hurt businesses and the workers
they employ.
Melanie Waddell is Washington Bureau Chief, Investment
Advisory Group. She also covers regulatory and compliance issues. Her column,
The Playing Field, appears in Investment Advisor and on
ThinkAdvisor.com, and she also writes the briefing and produces the podcast,
Human Capital. Earlier in her career, Melanie covered financial issues at
American Banker/Thomson Media publications in Washington and New York. You can
reach her at mwaddell@alm.com. On twitter: @Think_MelanieW
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