New federal coronavirus aid bill extends the time states have to spend coronavirus relief fund money

By: Emily Makings
7:55 am
December 22, 2020

Congress has passed new COVID-19 aid, as part of the FY 2021 appropriation bill. The COVID-19 aid portion appropriates $900 billion. The hold-up in getting a new relief package has been disagreements over whether to include liability protections for businesses and funding for state and local governments. In the end, neither policy was included.

However, the bill does give states and local governments until Dec. 31, 2021 (an extra year) to spend their shares of the Coronavirus Relief Fund (CRF). The CRF was established in the CARES Act earlier this year. (The money must generally be used for new spending related to COVID-19 response; it cannot be used to cover revenue shortfalls.)

Even though the package doesn’t include general funding for state and local governments, it does include billions of dollars that will flow to states. It’s not clear yet how much of the various appropriations will be allocated to Washington.

Here are some of the items in the package:

  • $54.3 billion for the elementary and secondary school emergency relief fund. (The CARES Act provided $13.5 billion for this purpose, of which Washington received $216.9 million.)
  • $22.7 billion for the higher education emergency relief fund. (The CARES Act provided $14.2 billion for this purpose, of which Washington received $226.1 million.)
  • $4.1 billion for supplemental emergency education relief grants to governors (for K-12 and higher ed), of which $2.75 billion must go to non-public schools. (The CARES Act provided $3.0 billion for this purpose, of which Washington received $56.8 million.)
  • $4.5 billion for states, local governments, and tribal health organizations to ensure broad vaccine coverage.
  • $10.0 billion for child care and development block grants. (The CARES Act included $3.5 billion for this purpose, of which $58.7 million went to Washington.)
  • $2.0 billion for airports. (The CARES Act included $10.0 billion for airports, of which $310.3 million went to airports in Washington.)
  • $14.0 billion for transit.
  • $2.0 billion for transportation service providers.
  • $1.0 billion for broadband grants.
  • $25.0 billion for rental assistance.
  • $15.0 billion for live venues.
  • $284.5 billion for the Paycheck Protection Program. (Additionally, businesses will be able to deduct from taxes eligible expenses paid for with forgiven PPP loans.)
  • $15.0 billion for passenger air carriers to pay employee wages and benefits and $1.0 billion for contractors.
  • CARES Act unemployment provisions will be extended to March 14, 2021.
  • The Pandemic Unemployment Assistance benefit will be $300 for weeks beginning after Dec. 26, 2020.
  • Additional recovery rebates of $600 for individuals ($1,200 for couples) and $600 per child (phasing down when income is $75,000 for individuals or $150,000 for couples).

The full federal appropriations bill is 5,593 pages long. According to the AP, “The Senate Historical Office said the previous record for the length of legislation was the 2,847-page tax reform bill of 1986 — about one-half the size of Monday’s behemoth.”

(Here’s a 29-page summary of the coronavirus aid provisions of the bill from the House Appropriations Committee.)

Categories: Budget , Economy.
Tags: CARES Act , COVID-19 , other federal action on COVID-19