Washington, D.C. – U.S. Rep. Terri Sewell commended the House passage by voice vote of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Congress’ third major COVID-19 economic relief package.

 

“This is an unprecedented crisis that requires an unprecedented federal response. This bill is critical to ensuring Alabama families are able to make their home payments and keep food on the table; for hospitals to keep their doors open; and for small businesses to keep workers employed and make it through this difficult time,” Sewell said. “While this bill is not perfect, it contains important provisions that will help keep Alabama families afloat. Eligible Alabamians will receive direct payments from the government, quickly putting money in the hands of those in our state who need it most.”

 

Importantly, the legislation provides direct payments of up to $1,200 for individuals that make $75,000 or less and head of households that make less than $112,500 a year. Joint tax-filers that make $150,000 or less will receive $2,400. Families and heads of household will receive an additional $500 per child. The Social Security Administration will share information for Social Security (Old-Age, Survivors, and Disability Insurance) beneficiaries with the IRS to help ensure these beneficiaries receive an automatic advance payment. These direct payments will help Alabama families make it through this difficult time.

 

Here are just a few of the numerous provisions in this legislation that will benefit Alabamians:

• A $150 Billion State and Local Coronavirus Relief Fund:  Creates a $150 billion State and Local Coronavirus Relief Fund to provide states and localities additional resources to cope with the coronavirus pandemic. It is estimated that Alabama will receive approximately $1.9 billion in desperately needed funds to benefit our state’s residents.

 

• $260 Billion in Dramatically Expanded Unemployment Benefits:  Includes numerous provisions to improve unemployment benefits including providing an additional $600 per week for the next four months, providing an additional 13 weeks of federally funded benefits, and expanding eligibility to include workers in the gig economy and self-employed workers.

 

• More Than $375 Billion in Small Business Relief:  Provides more than $375 billion in small business relief, including $349 billion for forgivable loans to small businesses to pay their employees and keep them on the payroll; $17 billion for debt relief for current and new SBA borrowers; and $10 billion in immediate disaster grants.

 

• Approximately $200 Billion for Our Hospitals, Health Care Workers, and Health Research:  Provides an investment of about $200 billion in our hospitals, health systems, and health research, including expanding funding for the personal protective equipment desperately needed by our health care workers, including ventilators, n95 masks, gowns, gloves, etc.

 

• • This includes $150 million for grants to rural hospitals to bolster capacity to respond to increased demand and $1.3 billion for supplemental grants to health clinics to provide expanded health care services.

 

• More Than $100 Billion in Additional Emergency Appropriations, Including the Following:
  • Election Assistance:  Provides $400 million for Election Assistance Grants for states to help prepare for the 2020 elections.  Coronavirus is already resulting in the postponement of some primaries and this funding can help states make voting safer for individuals.  Funding can be used, for example, to increase the ability to vote by mail, expand early voting, and expand online registration. Alabama will receive nearly $6.5 million for these purposes.

 

• • Transit Agencies:  Provides $25 billion to transit agencies, which have all seen a drastic drop in revenues as social distancing has been implemented.  This funding is to be used to protect the jobs of the employees of the transit agencies, funding their paychecks during this public health emergency. Alabama will receive $123 million under this program.

 

• • HUD Emergency Solution Grants:  Provides $2 billion for HUD Emergency Solution Grants to states that will be distributed by formula. These grants are designed to address the impact of the coronavirus among individuals and families who are homeless or at risk of homelessness, and to support additional homeless assistance, prevention, and eviction prevention assistance.  Of this $2 billion, Alabama will receive $ 26 million. In addition, the bill provides an additional $2 billion for these grants that will be allocated by HUD to the most hard-pressed areas.

 

• • Child Care and Development Block Grant:  Supports child care and early education by providing $3.5 billion for the Child Care and Development Block Grant. Our state will receive over $64 million under this emergency appropriation.

 

• • Low-Income Home Energy Assistance Program (LIHEAP):  Provides $900 million to help low-income families pay their heating and cooling bills. Alabama will receive nearly $34 million for this purpose during this public health emergency.

 

• • Byrne-Justice Assistance Grant Program:  Provides $850 million for this program, giving additional support to state and local law enforcement agencies, thereby allowing them, for example, to obtain the personal protective equipment and other medical items they may need during this public health emergency.  Our state will receive $14.7 million under this appropriation.

 

• • CDC Coronavirus State, Local and Tribal Grants Minimum Awards:  Provides about $750 million in CDC State, Local, and Tribal Grants Minimum Awards to help agencies cope with the public health emergency.  The minimum award for our state is $9 million. In addition, states can apply for additional funds above their minimum award, based on their needs.

 

• • Education Funding: Provides $3 billion to the states for emergency support grants to local educational agencies that the State educational agency deems have been most significantly impacted by coronavirus. These funds will support the ability of such local educational agencies to continue to provide educational services to their students and to support the on-going operations of the local educational agency; and provide emergency support through grants to institutions of higher education serving students within the state.

 

• • HBCU Capital Financing Program: Authorizes the Secretary of Education to defer payments on current HBCU Capital Financing loans during the national emergency period to allow HBCUs to devote financial resources to COVID-19 efforts.

 

A Q&A on the direct payments is available here.