American Assistance and Relief Act of 2020

American Assistance and Relief Act of 2020

Other short titles	AARA
Long title	American Assistance and Relief Act of 2020
Enacted by	the 116th United States Congress
Effective	April 8, 2020
Legislative history
Introduced in the Senate by Andrew Gardner (R-GA) on March 28, 2020 Passed the Senate on March 31, 2020 (98-0) Passed the House on April 7, 2020 (422-0) Signed into law by President Rick Tawney (R-TN) on April 8, 2020

The American Assistance and Relief Act of 2020 was a major bipartisan legislation sponsored by various members of Congress from both the Republican and Democratic Parties, although it was formally introduced to the Senate docket by Senator Andrew Gardner (R-GA).

Text

Section 1:

A grant program is established under the Secretary of the Labor to provide aid to improve and modernize state unemployment systems. Funds allocated may be used to update existing records, improve distribution, hire new workers and in general prevent disruption of service, delays in payment of benefits, and prevent waste, fraud and abuse.

A): $2 billion is allocated to this bill in the fiscal year 2020. Any leftover funds must be used in 2021 or returned to the Treasury. No single grant may exceed $45 million in the year 2020.

B): Individual states must apply for the grant based on the total unemployment in their state, total state population, and the specific needs of the state unemployment systems.

Section 2:

The Federal Unemployment benefit is increased by a further $600 per week for the 21 weeks after the passage of this bill, with a cap of 95% of previous earnings.

A): 20 weeks after the passage of this bill Congress will hold a vote on the extension of this benefit for another 21 weeks.

Section 3:

A Small Business Disaster Loan Assistance program is established and managed by the Small Business Administration. This program will allow small business owners, including agricultural businesses and nonprofits, to apply for loans to meet financial obligations and operating expenses that could have been met had the disaster not occured.

A): $20 billion is allocated for fiscal year 2020 to carry out this section of the bill.

B): The loan payment is deferred for one year and interest does not accrue for 5 years. The interest rate for businesses is fixed at 1% and the interest rate for non-profits fixed at .75%. No loan to any single small business or non-profit may exceed $1 million.

C): An Additional $10 billion is allocated for fiscal year 2020 to small businesses where state government agree to provide matching funds.

D): 10% of all funding in this section must be allocated to counties which have had a poverty level of 20% or higher for the past 30 years or more.

Section 4:

The Employee Retention Tax Credit is hereby created. This tax credit is intended to offset up to 50% of the wages of employees of businesses up to a limit of $10,000. For small businesses with under 100 employees up to 80% of wages may be upset up to $14,000.

A): Businesses must certify a 50% decline in gross receipts from the same calendar quarter of 2019 in order to qualify for this program.

B): The Employee Retention Tax Credit or ERTC, is a fully refundable tax credit applying to wages paid after March 1st, 2020 and before January 1st, 2021.

C): 6 Months after the passage of this bill Congress will have the option of extending this program to July 1st, 2021.

Section 5:

All individuals whose principal residence is within a declared disaster zone have a 60 day mandatory tax payment extension.

Section 6:

From March 1st, 2020 to June 1st, 2020 the Payroll tax rate for all individuals living within the United States is 0%. From June 1st, 2020 to August 1st, 2020 the payroll tax for all individuals living within the United States is 2%. From August 1st, 2020 to October 1st, 2020 the payroll tax for all individuals living within the United States is 4%. From October 1st, 2020 to January 1st, 2021 the payroll tax for all individuals living within the United States is 6%. Following January 1st, 2021 the payroll tax rate returns to the level it was at February 1st, 2020.

Section 7:

All public K-12 schools in the United States are eligible for individual grants in fiscal year 2020 not exceeding $100,000 per school, to be administered by the Department of Education. Grants must be distributed based on total student population and the rate of revenue per pupil.

A): $20 billion is allocated for the grant program established in this section. Any funds not used in fiscal year 2020 may be allocated in fiscal year 2021.

B): 10% of all funding in this section must be allocated to counties which have had a poverty level of 20% or higher for the past 30 years or more.

Section 8:

Direct Checks to all Americans making under $65,000 a year or $130,000 for couples filing jointly. 1 week after passage of this bill qualifying Americans will receive a check of $250 with an additional $100 per dependent. 3 weeks after the passage of this bill, qualifying Americans will receive a check of $750 with an additional $100 per dependent.

A): $250 billion is allocated for this section in fiscal year 2020.

Section 9:

Individuals within the meaning of section 1312 of the Patient Protection and Affordable Care Act and who are not eligible under title XVIII of the Medicare program, and whose primary residence is in an area with not more than 3 health insurance issuers, are qualified for the Medicare Exchange Health Plan whose goal is to provide access to quality healthcare for all enrollees.

A): The Secretary of Health and Human Services shall make available the Medicare Health Plan in priority areas for both individual and small group markets for the years 2020, 2021, and 2022.

B): The Secretary shall establish premiums for the health plan to cover the full cost of offering such plans, including administrative costs. Such premiums shall vary geographically and between the small group market and the individual market in accordance with differences in the cost of providing such coverage. If, for any plan year, the amount collected in premiums exceeds the amount required for health care benefits and administrative costs in that plan year, such excess amounts shall remain available to the Secretary to administer the health plan and finance beneficiary costs in subsequent years.

C): The Secretary shall reimburse health care providers items and services at rates determined for equivalent items and services under the Medicare fee-for-service program.

D): Prescription Drugs payment rates shall be at a rate negotiated by the Secretary in conjunction with title XVIII

E): The Secretary may utilize innovative payment methods, including value-based payment arrangements, in making payments for items and services (including prescription drugs) furnished under the health plan.

F): $30,000,000,000 is appropriated for this section in fiscal year 2020.

Section 10:

All Americans who have lost employment or have had hours cut compared to last fiscal quarter since March 1st, 2020 and who fail to pay rent may not be evicted from residences until at least three months following the implementation of this bill.

Section 11:

A Grant program is established for all Colleges, Universities, and private educational institutions for fiscal year 2020. Grants will be awarded according to size of the institution and the institution must produce evidence of a loss in gross receipts of 25% or more compared to the same fiscal quarter in 2019. Grants will be awarded in amounts not exceeding $100,000 per institution and will be paid out in installments over the next 4 years on the condition the institution does not raise tuition or cancel scholarship programs in the next 4 years.

A): 10% of all funding in this section must be allocated to counties which have had a poverty level of 20% or higher for the past 30 years or more.

B): $10 billion is allocated to this section.

Section 12:

The grant funding for The Office of Community Services, Division of Energy Assistance is increased to by $1 billion to $4.75 billion to help respond to home energy needs surrounding the national crisis.

A): 10% of all funding in this section must be allocated to counties which have had a poverty level of 20% or higher for the past 30 years or more.

Section 13: Stress Testing

A): Federal Reserve regulators are instructed to conduct extensive stress tests and examine financial accounts in accordance with their duties under the American Recovery and Reinvestment Act of 2009.

B): Such stress tests will apply to the ten largest health insurance companies as determined by the Secretary of Health and Urban Development.

C): The results of said stress tests will be disclosed to the President, Congress, and the public at a date not later than 3 months after the enactment of this section.

Section 14: Expansion of Supplemental Nutrition Assistance Program

A): Maximum Benefit Increase.—In general.--Beginning the first month that begins not less than 25 days after the date of enactment of this Act, the value of benefits determined by operators of the Supplemental Nutrition Assistance Program and consolidated block grants for Puerto Rico and American Samoa shall be calculated using 110 percent of the June 2008 value of the published "thrifty food plan" of 2019. For the first two months after the enactment of this bill the work requirements are dropped completely and then phased back in over six months following the enactment of this bill.

B): Funding.—There are appropriated to the Secretary out of funds of the Treasury not otherwise appropriated such sums as are necessary to carry out this section.