President Trump Signs COVID-19 Stimulus Package
On Friday, March 27, President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act into Law. This $2.2 trillion economic stimulus package passed the Senate 96-0 and passed the House by voice vote. The CARES Act appropriates funding for a number of programs and agencies important to our field:
- $1,200 for every taxpayer making $75,000 per year or less: Taxpayers making between $75,000 and $99,000 per year will receive smaller direct payments and those making more than $99,000 per year will not receive a payment. Families will also receive $500 per child.
- A temporary universal charitable deduction of up to $300: This deduction is available for cash-only non-itemized tax filings. It is available to both individuals and businesses.
- A $425 million emergency allocation for SAMHSA: Of that $425 million, $250 million will be allocated to community behavioral health organizations and an additional $50 million will be allocated for suicide prevention programs. $100 million will be allocated for SAMHSA programs generally.
- $4.3 billion for the CDC: This will help prevent, prepare and respond to COVID-19 nationally and internationally. $1.5 billion is allocated for cooperative agreements between states, localities, territories, tribes and Indian health organizations for preparedness and response activities related to COVID-19. $500 million is also included for public health data surveillance and analytics infrastructure modernization.
- $945 million for the National Institutes of Health: This will support research to expand on prior research plans, including developing a better understanding of the prevalence of COVID-19 and its transmission. The funding will also support novel approaches to diagnosing the disease and will help develop countermeasures for the prevention and treatment of COVID-19 at various stages.
- $15.5 billion for the Supplemental Nutrition Assistance Program (SNAP): This will ensure all Americans receive the food they need.
- $8.8 billion for Child Nutrition Programs: This will ensure children receive meals while school is not in session.
- $850 million for the Byrne-Justice Assistance Grant Program (Byrne JAG): This will allow state and local police departments and jails to purchase personal protective equipment (PPE) and other medical items. This funding will also support overtime for officers on the front lines of the pandemic.
- A $150 billion Coronavirus Relief Fund: This will help state and local governments cover expenditures related to COVID-19. Each state will receive at least $1.25 billion.
- A $45 billion Disaster Relief Fund: This will provide for the immediate needs of state, local, tribal and territorial governments to protect citizens and help them recover from the overwhelming effects of COVID-19. Governments may be reimbursed for medical response, PPE, National Guard Deployment, logistics coordination, safety measures and community services.
- $1.032 billion for the Indian Health Service: This will support critically needed resources for the tribal health system. These resources include expanded support for medical services, equipment, supplies, public health education, tribally owned and operated Indian health care facilities, investments for telehealth services, expanded funding for purchased or referred care, electronic health records improvement and expanded disease surveillance by tribal epidemiology centers.
- $453 million for the Bureau of Indian Affairs (BIA): This will support aide to tribal governments, welfare assistance, social service programs, expanded public safety and emergency response and teleworking.
- $13.5 billion for elementary and secondary education: This will support formula-grants to States, which will distribute 90 percent of funds to local educational agencies for use in coronavirus response activities such as planning for and coordinating during long-term school closures and purchasing technology to support online learning.
- $3 billion for state governors to allocate to local educational agencies: This will allow governors, at their discretion, to allocate emergency support grants to local educational agencies that state educational agencies deem to have been most severely impacted by the coronavirus.
- $100 billion for the Public Health and Social Services Emergency fund: This will provide direct aid to healthcare institutions dealing with the front line of the crisis.
- $100 million for the ReConnect program: This will help ensure Americans living in rural areas have access to broadband.
- $1 billion for the Community Services Block Grant (CSBG): This will help communities address the consequences of increased unemployment and economic disruption.
- The CARES Act considers nonprofits to be small businesses: Small businesses can apply for Small Business Administration (SBA) 7(a) loans and tax breaks. CADCA advises any nonprofits who think they may be eligible to talk with tax specialists or CPAs to see what they are entitled to under this legislation.
The coronavirus pandemic is a continually evolving crisis. Congress may pass additional stimulus and relief packages. CADCA will continue to monitor the situation and update the field as appropriate.
For additional information about the bill, please click the links below: