We offer a summary of the Coronavirus Aid, Relief and Economic Security (CARES) Act. The CARES ACT is a roughly $2 Trillion stimulus package that provides stimulus for individuals and businesses.
FACT: The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law on March 27, 2020 by President Donald Trump.
For more reading, and to see the sources we used for this article:
- Read the bill online here.
- See a really excellent summary of the CARES Act from the National Law Reviews “Senate Passes the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).”
CARES Act Summary
- Provides stimulus to individuals, large and small businesses (including hospitals, airlines, and the US Postal Service).
- Creates a $349 billion loan program for small businesses.
- Allocates $500 billion for assistance to large businesses.
- Allocates $130 billion in relief to the healthcare industry.
- Provides $1,200 to Americans making $75,000 or less and $500 for each child (limits differ based on filing status).
- Expands eligibility for unemployment insurance and provides people with an additional $600 per week beyond what is determined by the state.
The Act Also:
- Expands Telehealth services in Medicare.
- Expands the Defense Protection Act.
- Provides the Secretary of the Treasury with the authority to make loans or loan guarantees to states, municipalities, and eligible businesses.
- Loosens regulations imposed through the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Economic Stabilization Act of 2008, and others.
- Provides additional funding for things like child nutrition programs and agriculture.
The CARES Act is broken down into six sections or “titles.” Each Title covers a different aspect of the economy.
- Title I – Keeping American Workers Paid and Employed Act. This section covers individuals and small businesses and includes small business funding, loan forgiveness, emergency loans, bankruptcy projections and more.
- Title II – Assistance for American Workers, Families, and Businesses. This section covers individuals, employees, and employers and includes measures that address unemployment, tax credits, rebates, and taxes. It includes funding for extended sick leave, the $1,200 stimulus check, and more.
- Title III – Supporting America’s Health Care System in the Fight Against the Coronavirus. This section covers the healthcare system addressing supply shortages and providing funding to increase access to healthcare for COVID-19 patients. This is a long section with many details, some of which impact large employers and certain healthcare related industries like drug makers.
- Title IV – Economic Stabilization and Assistance to Severely Distressed Sectors of the United States Economy. This provides emergency relief for businesses, especially large businesses and especially key parts of the economy impacted the most like airlines.
- Title V – Coronavirus Relief Funds. Provides $150 billion in relief to states.
- Title VI – Miscellaneous Provisions. Authorizes the government to let the US postal service borrow up to $10 billion.
The Act also includes supplemental appropriations. This includes money for child nutrition programs, agriculture relief, and more.