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IPFS News Link • Legislation

Rabo: The Second Largest Chunk In The Covid Bill Is Helicopter Money

• By Philip Marey

Countries are closing their borders to the UK and global economic growth is facing another threat. While the vaccines are arriving, the road to the exit remains dark and bumpy.

While President Trump still has to sign the new Covid relief bill into law, the real hurdles – the House and the Senate – have been taken. So what's in the package? The largest chunk is aimed at small businesses ($325 billion). The bulk of this is made available for the Paycheck Protection Program ($284 billion). There will also be $20 billion available for target Economic Injury Disaster Loans for small businesses and $15 billion for live venues, independent movie theaters, and cultural institutions.

The second largest item is helicopter money ($166 billion). Direct checks will be sent as soon as next week according to Mnuchin. The checks will be $600 per individual, i,e, $600 per adult and $600 per child. The amounts will be decreasing for individuals with more than $75K in income and couples earning more than $150K. Democrats and especially the White House pushed for direct checks. However, this is smaller than the CARES Act checks which provided $1200 for adults and $500 for dependents.