Economic Assistance To American workers

Purpose

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided over $2 trillion in economic assistance to American workers, families, and small businesses. It was passed by Congress and signed into law by President Trump on March 27th, 2020.

Relief

Support

Impact on Individuals & Families

Stimulus Checks

Provided $1200 to individuals making less than $75,000 per year, and $2,400 to married couples making less than $150,000 (plus $500 per child)

Increased Unemployment Payments

Provided an additional $600 per week for four months to individuals receiving unemployment benefits, on top of what state programs pay

Expanded Unemployment Eligibility

Extended unemployment compensation to self-employed workers, gig economy workers, and independent contractors

Impact on Retirement Funds

Increased 401(k) Loan Limit

Raised the maximum 401(k) loan limit from $50,000 to $100,000

Waived Early Withdrawal Penalty

Suspended the 10% early withdrawal penalty for distributions up to $100,000 for coronavirus-related purposes, retroactive to Jan. 1

Extended Withdrawal Tax Deadline

Allowed retirement fund withdrawal taxes to be paid over the next 3 years or rolled back

Impact on Public Health

Free Coronavirus Testing

Covered all costs for COVID-19 testing and potential vaccines at no cost to patients and increased funding for testing supplies

Increased Funds for PPE

Provided funds for personal and protective equipment for health care workers, increased workforce and training, supported the CDC, and accelerated Medicare payments

Supported U.S Health System

Set aside funds to support the U.S. health system, some of which was injected directly into hospitals

Impact on Small Businesses

Forgivable Loans

Provided forgivable loans to small businesses to cover 8 weeks of payroll and overhead

Relief Grants

Offered grants to small businesses to cover immediate operating costs

Delayed Payroll Taxes

Extended deadlines for 2020 payroll taxes to 2021 for first 50% and 2022 for second 50%