Apr 15, 2020
Over the past month, Congress has enacted three pieces of legislation (the “Acts”) aimed at helping individuals afflicted by the coronavirus and providing fiscal stimulus to restart an economy that has been devastated by the virus’s effects. The legislation has wide-ranging consequences for individuals, businesses, and the economy.
This white paper summarizes the major provisions of the three Acts. It also summarizes the actions taken by the Federal Reserve to support the economy. Finally, the paper sets out some provisions that might be included in a forthcoming fourth piece of legislation.
The three Acts are far-reaching, long, and complex. We have made every effort to be complete. But, at this early stage, we cannot ensure that we have summarized the entire legislation fully and accurately. Readers must consult with their attorneys and advisors before relying on the information contained herein.
I. Coronavirus Preparedness and Response Supplemental Appropriations Act (Bill #1) ($8.3B)
II. Families First Coronavirus Response Act (Bill #2) ($150B)
III. Coronavirus Aid, Relief, and Economic Stimulus Act (CARES) (Bill #3) ($2T)
Provisions generally in effect for 2020 only.
IV. Federal Reserve Actions
V. CARES II? (Bill #4 possible provisions)
Andrew H. Friedman is the founder and principal of The Washington Update LLC and a former senior partner in a Washington, D.C. law firm. He and his colleague Jeff Bush speak regularly on legislative and regulatory developments and trends affecting investment, insurance, and retirement products. They may be reached at TheWashingtonUpdate.com.
The authors of this paper are not providing legal or tax advice as to the matters discussed herein. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. It is not intended as legal or tax advice and individuals may not rely upon it (including for purposes of avoiding tax penalties imposed by the IRS or state and local tax authorities). Individuals should consult their own legal and tax counsel as to matters discussed herein and before entering into any estate planning, trust, investment, retirement, or insurance arrangement.
Copyright Andrew H. Friedman 2020. Reprinted by permission. All rights reserved.
POTUS seriously exploring executive action as a solution to stalled Round 4 talks. Focus is on eviction moratorium, unemployment benefits extension & suspension of payroll taxes. Asks agencies to advise him re monies not spent from CARES Act. ow.ly/tBPx50ASwp6
Primary results: Winners-Moderate GOP and Progressive Dems. ow.ly/RsTL50ARuSx ow.ly/cLTp50ARuSs Progress in Round 4 talks. Dems seem to be getting more of what they want. ow.ly/tXgg50ARuSn ow.ly/dq1z50ARuSl ow.ly/qUyp50ARuSz ow.ly/AQS350ARuIy
Round 4 negotiations- Better, but not good. ow.ly/F9Yx50AQtqu ow.ly/Lu1550AQtqp ow.ly/fBYg50AQtqw Trump weighs action. ow.ly/Up3z50AQtqg Meanwhile, it's Primary day! ow.ly/aaA050AQtqn Confused by balloting terminology? ow.ly/5oE550AQtpl
By driving up Democrat mail-in balloting, ballot rejections could provide a slight tailwind for Trump due to higher failure rate and low correction rate vs in-person. ow.ly/8el750APoEG Black voters not as trusting of mail-in. ow.ly/O3qQ50APoEJ
No significant Round 4 negotiation progress made over the weekend. ow.ly/S3Ax50APpn5 With the absence of legislative progress, rumors of Trump taking executive action begin. Hint, his authority is mostly limited. ow.ly/4CRY50APpn7