Congress approved a new $1.9 trillion stimulus package Wednesday to help carry the nation through the final stage of the pandemic. Out of that, Arizona expects to receive about $12 billion for aid to businesses, schools, families and others still struggling from pandemic shutdowns and disruptions. 

After several hours of testimony on the House floor, the measure, which was passed by the Senate on Saturday, was approved along party lines, 220-211, with all Democrats in support. Passage of the bill comes as expanded unemployment benefits are set to expire Sunday.  

President Joe Biden issued a statement celebrating the bill’s passage, saying he is ready to sign it into law. 

“This legislation is about giving the backbone of this nation — the essential workers, the working people who built this country, the people who keep this country going — a fighting chance,” Biden said.  

Main Street support

Corporate America and Arizona business leaders expressed reservations about the bill’s size and scope.

“The business community and state leaders will be poring over this bill in the coming days to better understand all of its implications,” said Garrick Taylor, interim president and CEO of the Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry. “This bill, obviously, contains more than just targeted spending directly related to the fallout of the pandemic, but its inclusion of public health funding and tools to end the scourge of this pandemic once and for all is welcomed. Widening and accelerating the distribution of the vaccines is essential to relieving the pressure on our healthcare system and getting the broader economy back to full strength.”

Here’s what’s in the rescue plan

Here’s what the American Rescue Plan Act means for businesses, schools, families and others still struggling from pandemic shutdowns and disruptions. 

Restaurants, bars and food service providers: A dedicated relief fund of $28.6 billion is intended to help small and mid-sized restaurants, bars, caterers, food trucks, breweries and other food service providers in need of assistance with rent and operational expenses. It provides grants of up to $10 million per entity with a maximum of $5 million per location based on the difference between 2020 and 2019 revenue. 

Small businesses low-interest loans: The package provides $15 billion to theEmergency Injury Disaster Loan program for small businesses to receive to low-interest loans from the U.S. Small Business Administration (SBA). Advances for small businesses of up to $10,000 may be converted to grants if used to cover business’s operating expenses. The smallest companies, those with fewer than 10 employees, will be given priority for some of the funding.

Paycheck Protection Program : Provides an additional $7.25 billion for the PPP program. Expands eligibility to 501(c) nonprofits (except 501c4) and larger nonprofits, as well as internet-only news and periodical publishers. However, the Act does not extend the PPP’s current application period, which closes on March 31.

Voluntary tax credits for employers: A provision in the package offers tax credits for employers who voluntarily provide paid sick and family leave pay for people who are sick, quarantined or caring for a sick relative or child. 

Reauthorizes state Small Business Credit Initiative Act of 2010: Provides $10 billion to support small business financing to be expended by September 30, 2030. 

Economic Adjustment Assistance : Provides $3 billion for competitive technical, planning, and public works and infrastructure assistance to regions experiencing adverse economic impacts. Available until September 30, 2022.

Payroll Support Program : Provides $14 billion to air carriers and $1 billion to contractors. 

Extended and expanded unemployment benefits: Unemployed workers will receive an additional $300 to their weekly benefit through Sept. 6. The Pandemic Unemployment Assistance program in the plan also provides benefits not only to traditional W-2 workers but also to independent contractors, gig workers and freelancers affected by the pandemic. 

Tax-free unemployment benefits: The first $10,200 of benefits is non-taxable for households with incomes under $150,000. Additionally, the act provides a 100 percent subsidy of COBRA health insurance premiums to ensure that the laid-off workers can remain on their employer health plans at no cost through the end of September.

Families and individuals: The bill provides direct payments of $1,400 to individuals earning up to $75,000 a year and families earning up to $150,000. Individuals who make under $80,000 and families that earn under $160,000 also will receive a smaller amount. 

Tax credits for children: Qualifying families with children 6 and under will be able to claim a larger tax credit of $3,600 per child and $3,000 for each child under 18 for 2021. 

Housing assistance and mortgage and rent relief: Approximately $40 billion will go for housing assistance, including $21.5 billion to be divided up among state and local governments to help low-income households with rent and mortgage assistance and utility bills.

The plan also provides $350 billion in aid to state and local governments; $170 billion for K-12 schools, colleges and universities to reopen; and over $100 billion for health care, including COVID-19 testing and vaccine distribution. 

What’s not in the package

Minimum wage hike: A controversial measure to raise the minimum wage did not survive an earlier version of the rescue plan. The measure would have more than doubled the minimum wage from $7.25 to $15 in increments over the next four years. The Senate parliamentarian ruled that the proposal did not meet requirements for a reconciliation bill. Expect the issue to come up in a separate bill later on. 

Arizona to receive an estimated $12 billion in aid 

An by the Arizona Joint Legislative Budget Committee (JLBC) estimates that  the state should receive about 2 percent of the stimulus package, or $12.3 billion, excluding the extended unemployment benefits.

Included is funding for projects that will help economic development across the state, including rural communities that have been hit particularly hard by the pandemic, said Carrie Kelly, executive director of the Arizona Association for Economic Development.

“There’s $690 million in transportation and $145 million in broadband and connectivity funding for Arizona that will help bridge the digital divide and create infrastructure jobs,” Kelly said. “Additionally, the $2.6 billion that Arizona local governments will receive helps those rural communities that need it most.”
To read the bill in full, visit:

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As Congress this week returns to Capitol Hill to consider its fourth major pandemic relief and response bill (a fifth bill updated elements contained in a previous bill), I anticipate that there are seven major elements that will be included in some form or fashion.

The Wall Street Journal had an excellent over the weekend that laid out the various issues that the next bill might address. Here’s my take on the items identified in the story:

Unemployment benefits.

The first aid package contained a massive expansion of unemployment benefits at $600 above a state’s existing unemployment insurance payment. Lawmakers approved the enhanced benefit knowing that, for many workers, the additional dollars would deliver a temporary income higher than what they were previously earning at their job. It’s unlikely a similarly generous payout will be repeated.

Still, given that unemployment levels remain high, supplementing regular state unemployment insurance is justified, but it should be at a level that does not exceed a worker’s pay before a furlough or a layoff. There are some creative bipartisan proposals that deserve consideration to encourage a return to work without pulling the rug out from under struggling households.

Additional stimulus pay.

The original CARES Act provided up to $1,200 per adult and $500 per child in direct cash assistance. Again, given the current high unemployment levels, additional relief makes sense. How much, exactly, and how it is targeted still needs to be settled.  

This moment also offers policymakers the chance to consider ways to improve the Earned Income Tax Credit, a refundable tax credit aimed at low- and moderate-income working families. One reform could include automatically issuing the credit to qualifying households without requiring the filing of a tax return. 

Schools reopening.

I strongly disagree with those who believe that schools should be penalized if they’re not open during a pandemic for legitimate safety reasons. We cannot and should not force teachers, support personnel, or students into a classroom or school environment where they don’t feel safe.

A carrot approach would be better, delivering funds attached to each student who is attending an in-person educational setting to reflect the increased costs. Funding must be available for face masks, cleaning products, PPE, and the implementation of any other healthcare protocols necessary to improve school safety and hygiene.

Funds should also be available for distance learning, which will be necessary to provide resiliency if schools must close or for students who have underlying health conditions and for whom a return to in-person learning might be delayed.

There should also be funds allocated for all parents and guardians, perhaps subject to income limitations, for expenses related to transportation and connectivity like WiFi or laptops.

In Arizona, it’s estimated that the cost to provide for a safer in-person learning experience is $485 per child. 

Liability reform.

Liability reform is essential not just for regular businesses attempting to reopen safely and responsibly, but for schools, cities and towns, non-profits as well as healthcare providers. We don’t want concerns over dubious lawsuits to delay our recovery.

This protection should provide certainty for those acting in good faith to follow applicable state and CDC health guidelines. Ideally, there would be safe harbors in any protection.

Bad actors who are grossly negligent or who engage in willful misconduct should not be protected, and the relief should be temporary and targeted to Covid-19.

State and local aid.

Any additional aid to states and cities should provide maximum flexibility to these jurisdictions as long as funds are used to respond to the economic fallout from Covid-19. In other words, federal tax dollars should not be used for things like pension bailouts or other problems that existed long before the pandemic.

It’s important to point out that Congress did appropriate $150 billion in March for state and local governments. It would be useful to have a report on how those dollars were spent and any lessons learned that could be applicable to additional aid. It is worth considering additional aid for U.S. border communities whose finances have been devastated by the prolonged closure to most cross-border travel.

Additional business aid.

The Paycheck Protection Program is arguably the most successful business assistance program in the history of the world. Thus far, this small business rescue effort has provided about 5 million forgivable loans representing more than $515 billion.

In Arizona, the numbers are staggering. More than 81,000 small businesses have received these loans worth more than $8.5 billion.

There’s still about $130 billion left in the program, which after extensions is now set to expire August 8. Congress should extend the program again and more dollars should be added, and all loans already distributed should be completely forgiven if they’re under $150,000.

For smaller businesses, say those with 100 or fewer employees, or businesses in hard hit sectors like hospitality, a second round of lending should be allowed.

Congress should also expand the Employee Retention Tax Credit, which has bipartisan support. The credit helps employers keep their workers on the payroll while relieving a percentage of employment taxes. The president’s payroll tax holiday is truly stimulative and, along with the administration’s deregulatory efforts, could provide the building blocks for a structurally sound recovery. 

With the continued tensions between the U.S. and China and the USMCA now in effect, incentives for vital supply chains for things like medical supplies and semiconductors to return to or expand in the U.S. deserve support.

Dealing with the virus.

Additional aid should be directed to testing and contact tracing, as well as building a robust public health infrastructure. It also makes sense to direct money at boosting the number of Americans who get the flu vaccine this year. A raging influenza season on top of Covid-19 could be devastating.

Dollars should be allocated for small- and medium-sized businesses for costs related to PPE and other protocols to make the workplace safer. Arizona Rep. David Schweikert has a good idea to help businesses offset the costs of providing tests for workers.

A massive PR campaign on wearing masks—the closest we have to a silver bullet when people are in public—is needed.

It’s easy to be a critic, but thus far Congress and the administration have risen to the occasion in supplying aid and direction in previous Covid-19 relief bills. I want to particularly thank our U.S. senators, Kyrsten Sinema and Martha McSally, for working tirelessly and turning their offices into virtual MASH units in assisting their constituents in dealing with this crisis.

Glenn Hamer is president and CEO of the Arizona Â鶹´«Ă˝Ół»­ of Commerce and Industry. 

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