Bay Area Leaders Applaud Passage of $1.9 Trillion COVID Relief Package. Here's What's in It

House lawmakers on Wednesday gave final approval to President Biden’s $1.9 trillion coronavirus relief package, sending the legislation to Biden’s desk for his signature. The White House says Biden plans to sign it on Friday.

That’s welcome news to some Bay Area city leaders, who have advocated for more relief from the federal government.

San Francisco Mayor London Breed lauded the package, called the American Rescue Plan, for providing funding for vaccinations, direct support for families and people in need, and helping cities “maintain critical services and avoid layoffs.”

“This is what happens when we have a federal government that wants to invest in the success of states and cities,” Breed said on Twitter Wednesday. “The future of San Francisco and the country is brighter today as a result.”

San Jose Mayor Sam Liccardo and Oakland Mayor Libby Schaaf were also among Bay Area leaders pushing for more funding in the federal relief package.

“American cities like San Jose have been on the front lines of the #COVID19 pandemic & paid a steep price,” Liccardo tweeted in February, joining more than 400 mayors across the United States calling on Congress to pass the relief plan.

The bill will direct a new round of aid to Americans — in the form of direct payments, extended unemployment benefits, an expanded child tax credit and more — almost a year after the pandemic first upended daily life in the United States.

Biden said in remarks on Saturday at the White House that funding for the American Rescue Plan will “get the country in a place to get back to normal.”

“This plan puts us on a path to beating the virus,” he said, following the Senate’s vote. “This plan gives those families who are struggling the most the help and the breathing room they need to get through this moment.”

Biden also vowed to get the direct payments of up to $1,400 out the door starting “this month.”

The House voted 220-211 with no Republicans voting in favor of the bill, despite calls for bipartisan support from House Speaker Nancy Pelosi and other Democratic leaders. One Democrat, Rep. Jared Golden of Maine, voted against the bill.

The House passed a similar version of the plan last month, but had to approve changes to the legislation made by the Senate. One key difference is that the Senate’s version of the bill doesn’t include an increase to the federal minimum wage, a provision that was ruled out by the nonpartisan Senate parliamentarian.

The Senate also tightened the caps for direct payments, narrowing who would qualify for them.

Beyond support for individuals and families — including an expanded child tax credit, the bill allocates billions of dollars to schools and to the distribution of COVID-19 vaccines, testing and supplies.

Though Republicans have largely opposed the plan since Biden introduced it in January, the budget reconciliation process allowed Democrats to push the bill forward without support from across the aisle.

The White House and congressional Democrats point to public opinion polls showing overwhelming support for the legislation, including the backing in some surveys from a majority of Republicans. While no GOP lawmakers in Congress voted for it, Democrats point out that some Republican state and local government officials are pressing for the aid.

Biden is expected to sign the bill swiftly; the current enhanced federal unemployment benefits expire Sunday. He’ll also deliver the first prime-time address of his term Thursday to mark the one-year anniversary of the pandemic.

Here’s a closer look at some of the big-ticket provisions in the Senate-amended bill:

Direct Payments

The bill allocates funds for a third economic impact payment to qualifying Americans.

Individuals earning up to $75,000 and couples earning up to $150,000 would receive the full direct payments of $1,400 per person. Individuals will also receive an additional $1,400 payment for each dependent claimed on their tax returns.

Senate Democrats agreed to lower the income cutoff at which payments phase out from $100,000 to $80,000 for individuals, and from $200,000 to $160,000 for couples filing jointly, following demands from moderate Democrats.

Unemployment Benefits

Under the Senate version, federal unemployment insurance payments will remain at $300 per week — down from $400 per week in the earlier package passed by the House. The benefits will extend through Sept. 6. The Senate’s bill makes the first $10,200 in unemployment payments nontaxable for households with incomes under $150,000.

Child Tax Credit

The legislation would temporarily expand the child tax credit, increasing the amount to $3,000 for children ages 6 to 17 and $3,600 for children under age 6.

The amount is gradually reduced for couples earning over $150,000 and individuals earning over $75,000 per year. Families eligible for the full credit would get payments of up to $300 per child per month from July through the end of the year.

Congressional Democrats and the White House may want to figure out how to make the credit permanent.

Paycheck Protection Program

The bill includes $7.25 billion in new money for the small-business loan program known as the Paycheck Protection Program and would allow more nonprofits to apply, including those groups that engage in advocacy and some limited lobbying. It also allows larger nonprofits to be eligible.

Education

There are over $128 billion in grants to state educational agencies, with 90% allocated to local educational agencies, plus $39 billion in grants to higher education institutions. Nearly $15 billion in funds are directed to the Child Care and Development Block Grant program to help support child care facilities, particularly in high-need areas.

The Senate version added a provision to make any student loan forgiveness passed between Dec. 31, 2020, and Jan. 1, 2026, tax-free — rather than having the forgiven debt be treated as taxable income.

Support for Low-Income Families

The bill includes $4.5 billion for the Low Income Home Energy Assistance Program, known as LIHEAP, to help families with home heating and cooling costs. One provision would give the agriculture secretary the authority and funding to temporarily boost the value of cash vouchers for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) up to $35 per month for women and children for a four-month period during the pandemic.

There is $1.4 billion in funding for programs authorized under the Older Americans Act, including support for nutrition programs, community-based support programs and the National Family Caregiver Support Program.

The bill provides $37 million to the Commodity Supplemental Food Program for low-income seniors.

Public Health

The Centers for Disease Control and Prevention is set to receive $7.5 billion to track, administer and distribute COVID-19 vaccines. Another $46 billion would go toward diagnosing and tracing coronavirus infections, and $2 billion would go toward buying and distributing various testing supplies and personal protective equipment.

There’s a variety of provisions in the legislation to offer support to different industries. The Small Business Administration would get $25 billion for a new grant program for “restaurants and other food and drinking establishments.” Grants would be up to $10 million per entity and $5 million per physical location, with a maximum of 20 locations. The legislation sets aside $5 billion of the total money to be targeted to businesses with less than $500,000 in revenue in 2019. The bill includes another $1.25 billion for the Small Business Administration’s Shuttered Venue Operators Grant program.

To support the transportation sector, the bill allocates nearly $30 billion for transit costs, including payroll and personal protective equipment; $8 billion for airports; $3 billion for a temporary payroll support program to help support the aerospace manufacturing industry; and $1.5 billion to recall and pay Amtrak employees who were furloughed because of the pandemic and to restore various daily routes. Another $15 billion would also be allocated to support workers in the airline industry.

Rental Assistance

There is $25 billion for emergency rental assistance, including $5 billion for emergency housing vouchers for people experiencing homelessness, survivors of domestic violence and victims of human trafficking.

This story includes reporting from NPR’s Chloee Weiner and Barbara Sprunt, and KQED’s Joe Fitzgerald Rodriguez.