Congress To Pass $2T Coronavirus Stimulus: How It Affects NY

NEW YORK, NY — Federal lawmakers were poised Wednesday to pass the largest disaster relief bill in United States history in the form of a $2 trillion stimulus package designed to offset the damage caused by the outbreak of coronavirus in the country, lawmakers announced early Wednesday morning.

The bill will distribute money to states and local municipalities around the country, provide aid to people who have lost their jobs and bail out businesses that have been hurt by a declining economy as the nation's biggest cities lock down to halt the spread of coronavirus. New York City, described as the epicenter of the country's outbreak by both local and federal officials, stands to benefit from many of the provisions in the bill, New York Sen. Chuck Schumer said in a statement.

More than $40 billion will be allocated directly to New York State, with much of that money going to relief efforts in the city, Schumer said.

Here's how the money breaks down, according to Schumer's office:

• $15 billion will go toward unemployment insurance in the state. This stands to benefit many city residents who work as freelancers and gig workers. The stimulus bill has enhanced employment insurance to cover four months of regular pay for workers who have been laid off as a result of social distancing measures to combat the spread of the coronavirus.
• $15.5 billion will go toward $1,200 checks to be sent to every adult in New York earning below $75,000. Benefits will decrease for adults earning more than $75,000 and less than $99,000. Households also will receive $500 per child.
• The bill includes $150 billion in aid for hospitals including grants, new protective equipment and construction of new medical facilities. Schumer expects several billion will be distributed to New York.
• $5.8 billion will be allocated to local governments in New York State, with $1.4 billion going toward New York City.
• Of the $25 billion in relief for public transit agencies, $3.8 billion will go to the MTA.
• New York City small businesses and nonprofits will be able to apply for relief with the creation of a $375 billion program for businesses facing difficulties paying rent, mortgages and utility bills during the outbreak.
• New York is expected to receive billions in additional emergency appropriations that will go toward funding SNAP benefits, community grants, child care and activation of the National Guard.

"This is not a moment of celebration but rather one of necessity," Schumer said in a statement. "The more than $40 billion of additional help on the way to New York is essential to save lives, preserve paychecks, support small businesses, ensure public transit and much more."

Lawmakers announced a compromise on the stimulus package shortly after midnight Tuesday, the New York Times reported. Democrats and Republicans in the Senate negotiated with White House officials for days over stipulations in the bill such as greater oversight on a $500 billion fund to provide loans to businesses hurt by the coronavirus outbreak. Democrats added provisions to the fund that would bar companies from using the federal funds on stock buybacks.

In addition to greater oversight on how the business bailout money is spent, Schumer negotiated a ban on allowing federal aid funds to benefit businesses owned by family members of President Donald Trump and other government officials, the Times reported.

Schumer said Wednesday that Democrats secured an additional month of unemployment insurance, an additional $55 billion for hospitals and $150 billion for state and local government aid during negotiation sessions.

While federal lawmakers Wednesday touted the stimulus as a historic achievement, some state officials were less optimistic about its effects on the state. New York Gov. Andrew Cuomo described the aid package as a "drop in the bucket" during his Wednesday morning coronavirus briefing, saying that the state is facing a revenue shortfall of $9 billion to $15 billion.

"If we don't get more money from the federal government, I don't know how we right the budget, and that's why this Senate bill is so troublesome," Cuomo said.

The governor's office released a statement Wednesday afternoon accusing federal officials of stiffing New York State on aid in the Senate bill for political reasons. The roughly $3 billion allocated to the state government represents just about 2% of the state's budget, a lower share of the budget than 48 other states.

This is despite the fact that New York State is incurring the greatest costs as we have the highest number of cases in the country. New York State has 30 times the number of cases as Texas's 1,031. The gross political manipulation is obvious. For example, Wyoming, which only has 40 confirmed COVID-19 cases, is getting 17.1 percent of their budget as a payment from the federal government," Cuomo spokesperson Dani Lever said in a statement.

In recent days, Cuomo has been upfront about the potentially dire situation facing New York State. New York may need 140,000 hospital beds — almost triple the state's 53,000 beds — and 30,000 ventilators in as little time as two weeks, the governor said during a Tuesday briefing at the Javits Center.

"We haven't flattened the curve," Cuomo said Tuesday. "The apex is higher than we thought, and the apex is sooner than we thought."