How the $3 trillion-plus HEROES Act would help local communities

$375 billion would go directly to local governments


ASSOCIATED PRESS

WASHINGTON — Democrats controlling the House have unveiled a $3 trillion-plus coronavirus relief bill — the fifth coronavirus response legislation so far — and are planning to pass the measure on Friday. The legislation replenishes existing accounts to respond to both the COVID-19 health care crisis and to try to ease the economic impact of the pandemic, which has produced record job losses and fears of a depression.

Highlights of the Democratic bill:

FISCAL AID TO STATES AND LOCAL GOVERNMENTS

House Speaker Nancy Pelosi of Calif., walks to speak about the so-called Heroes Act, Tuesday, May 12, 2020 on Capitol Hill in Washington. Image: Saul Loeb/Pool via AP
House Speaker Nancy Pelosi of Calif., walks to speak about the so-called Heroes Act, Tuesday, May 12, 2020 on Capitol Hill in Washington. Image: Saul Loeb/Pool via AP

The Democratic bill provides more than $900 billion to states ($500 billion), local governments ($375 billion), as well as Indian tribes and territorial governments ($40 billion) to help prevent layoffs of public workers, cuts to services, or tax hikes.

DIRECT PAYMENTS

Adds a second round of direct payments to individuals and makes those benefits more generous than an earlier round, which limited payments for dependent children to $500. Instead, it provides new payments of $1,200 per family member, up to $6,000 for a household.

HAZARD PAY FOR ESSENTIAL WORKERS

Creates a $200 billion "heroes fund" that would provide a "hazard pay" supplement for essential workers such as first responders, health care workers, sanitation workers, and those at businesses required to stay open.

UNEMPLOYMENT BENEFITS

Extends a $600 per week federal unemployment benefits supplemental payment through January, 2021, instead of cutting it off at the end of July.

POSTAL SERVICE

Provides $25 billion for the cash-strapped U.S. Postal Service, which is expected to run out of money by the end of September without congressional aid because it's losing so much revenue during the pandemic. The measure also would repeal several restrictions on a $10 billion line of credit for the Postal Service authorized in a previous economic rescue bill.

HOUSING ASSISTANCE

Provides $175 billion to states to help renters and homeowners pay mortgages, rent, and other housing costs and avoid default, with much of the money aimed at lower-income people. 

HIGHWAYS/MASS TRANSIT

Provides $15 billion for state transportation departments for highway needs and $16 billion to mass transit systems hit by a massive drop-off of ridership and lower income from fares.

EDUCATION

Dedicates $100 billion to states, school districts, and universities to defray additional costs associated with the pandemic.

TESTING/AID TO HEALTH PROVIDERS

Provides $75 billion on top of earlier outlays to test for the coronavirus, perform contact tracing to track its spread, and treatment for COVID-19. Adds another $100 billion for hospitals and other health care providers.

PRIVATE HEALTH INSURANCE

Provides subsidies for laid off workers to remain on their employer-provided health insurance plans through so-called COBRA benefits and creates an open enrollment period to sign up for "Obamacare" policies on state and federal health insurance exchanges.
 

Associated Press
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