New $3 Trillion Stimulus Bill to Help Americans Passes the House

By Patrick Ryan CFP, AWMA^®  and Steven T. Merkel CFP^®, CHFC^®

A new coronavirus rescue bill was passed through the house, backed by House Democrats. The bill would direct an additional $3 trillion to state and local governments, health systems, another direct payment to Americans, and a range of other initiatives. However, Democrats and Republicans disagree over how to deal with the economic slowdown.

The new legislation would also send a second round of stimulus checks to millions of Americans. Republicans voiced their rejection, describing it as a wish list that would go nowhere in the Senate. Democrats argue that not acting now will be the more expensive course in the long run and that we should take advantage of the historically low-interest rates[1]. The bill will now move on to the Senate.

Within the partisan back-and-forth the real issue is how to restart the economy and direct much-needed relief to those most desperate areas of our society.  Will the next round of funding be enough to sustain Americans as health officials warn that the pandemic and fallout are likely to drag on through the summer and possibly into the fall?  Will additional stimulus funding devastate our future generation’s ability to prosper?  These are the questions facing our lawmakers while they determine how best to get Americans back to work.

There are elements of activity that spark hope however.  The resiliency of Americans and American business has been tested time and time again, through world wars, terrorist attacks, financial and natural disasters.  The innovation we’ve already experienced has been impressive from schools and businesses moving functions online to factories re-tooling entire product lines to meet the needs of healthcare workers. Companies are finding new ways to utilize existing technology to help stop the spread of the coronavirus[2]. 

The efforts to approve more relief come as United States COVID-19 cases top 1.56 million and American deaths from the disease surpass 92,333, according to data provided by Johns Hopkins University.  As the U.S unemployment rate spiked to 14.7% in April, states started to lift lockdown restrictions and business closures designed to slow the outbreak.3

If you have any questions about this new legislation and how it may impact your future financial plans, please feel free to reach out to your CAS advisor.

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[1] https://abcnews.go.com/Politics/house-democrats-unveil-3t-relief-bill-aid-states/story?id=70642730

[2] https://www.cnbc.com/2020/04/15/hot-spots-of-innovation-as-a-result-of-coronavirus-pandemic.html

3 https://www.cnbc.com/2020/05/15/house-aims-to-pass-a-3-trillion-coronavirus-relief-package-friday.html