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Government Strategies Update

Senate Passes Economic Stimulus Package in Response to COVID-19 Crisis

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Late in the evening of March 25, 2020, the U.S. Senate by a vote of 96 to 0 passed HR 748, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a $2 trillion emergency relief bill that attempts to arrest the financial disruption caused by COVID-19.

This bill is not yet law. The U.S. House of Representatives will convene on Friday, March 27, to consider the bill and vote on the package. If the House passes the CARES Act, as expected, the President will then need to ratify it. President Donald Trump has said he intends to sign it into law immediately.

This is the largest economic stimulus in U.S. history.

Below is a summary of key elements of the bill, which include (I) loans, guarantees and subsidies available to qualifying small businesses; (II) general assistance available to all qualifying American businesses; (III) modifications to property tax and protections for homeowners and renters; (IV) relief for colleges, universities and their students; (V) unemployment insurance, tax credits and rebates to individuals; (VI) direct lending to qualifying businesses; (VII) assistance to air carriers and other businesses related to air transportation; and (VIII) support for the national healthcare system.

It is important to note that the CARES Act will have inadvertent errors and omissions, including definitions of important terms. When Congress next convenes, we anticipate that it will pass a measure making technical corrections to the CARES Act. We also anticipate that Congress will consider passing additional COVID-19-related relief measures in a “Phase 4” stimulus bill.

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