Congress Nears Completion of COVID-19 Relief Bill
This week, Congress continued working toward an agreement on additional COVID-19 relief. At the time of this publication, congressional leaders are currently hammering out the final details of a bipartisan Covid-19 relief draft proposal. Known as the Bipartisan Emergency COVID-19 Relief Act of 2020, this proposal would provide $748 billion in federal Covid-19 aid, including an extension of all unemployment benefits for 16 weeks, $25 billion for emergency rental assistance, and an extension of the CDC’s eviction moratorium through January 1, 2021.
For Rental Assistance, the proposal is expected to include:
- $25 billion in rental assistance to states and local governments and Native American tribes through the Coronavirus Relief Fund (CRF) administered by the Treasury Department (using the existing CRF formula).
- 90 percent of funds must be used for payment of rent, rental arrears, utilities, utility arrears, and related housing stability services with 10 percent of funds available for housing stability services and includes specific guardrails to ensure support for the most in-need households, with a preference for households with 50 percent of area median income and below, and caps out at 80. The support can cover up to 18 months of arrears and forward assistance and will not be considered as income for tax purposes.
- The legislation will allow landlords to help tenants apply for assistance. If the landlord helps the tenant apply for rental assistance, the tenant has to co-sign and the money can only go to rent owed. The new deadline for CRF funds will be 2022.
For Unemployment Assistance, the proposal includes:
- An extension of all pandemic unemployment insurance programs by 16 weeks, from their expiration at the end of December, 2020.
- Federal supplemental unemployment insurance benefits expanded by $300 per week for 16 weeks, from the end of December into April 2021.
- A proposal for a $600 stimulus check to qualifying individuals, plus additional $600 per child.
It is also expected that the CDC eviction moratorium will be extended for one month, until January, 31, 2021. The presumption is that the incoming Biden Administration will issue a stronger eviction moratorium in January; however, we have no additional details at this time.
With current government funding slated to run out at midnight tonight, Congress is likely to pass a two-day Continuing Resolution this afternoon, funding government operation through Sunday, December 20. This gives Congress additional time to resolve the final points of contention in the relief bill. Once an agreement is reached, the relief bill will be attached to a $1.4 trillion government funding bill that would fund government operations through September 30, 2021.
To view the current bipartisan COVID-19 relief draft proposal, click HERE.