The US Congress agreed in principal to a $2 trillion fiscal stimulus package on which they will hold a formal vote Wednesday. The package is broad in scope and unmatched in scale. In total, the bill would deliver fiscal support amounting to nearly 10% of US GDP. Half of the total package is made up of immediate permanent transfers, cash payments, to individuals and businesses. Individuals would be eligible to receive up to $1,200 depending on income limits which were relaxed and broadened relative to earlier proposals. This aspect alone would total around $300 billion. Businesses with less than 500 employees would be eligible for loans to cover payroll at a total cost of approximately $367 billion. These loans would automatically covert to grants, if participating businesses maintained headcount during the coronavirus incurred slowdown. Furthermore, expanded unemployment insurance would cover up to 100% of lost wages for the recently unemployed and makes hundreds of billions in aid available to state and local government and the health care system. These programs would total around $450 billion. With nearly all of these funds, over $1 trillion, being injected into the US economy immediately, the effects of the stimulus programs should be acute in this time of need. The second half of the package focuses on providing support to households and business through tax payment delays or waivers along with a creating loan facility from which the Federal Reserve could provide direct lending to corporations. With large portions of the economy already shuttered in response to the health crisis, this package should help the domestic economy weather the extraordinary short run headwinds. While a full recovery of the economy remains contingent upon containing the global spread of the virus, these steps should provide necessary and valuable fiscal accommodation in the interim. We wanted to take a moment to check in and hope you’re taking care of yourselves and your families. During such uncertain times, it’s more important than ever to nurture your relationships and stay connected— and the health and safety of our employees and clients is paramount. Therefore, in accordance with the guidelines set forth by Allegheny County and Governor Tom Wolfe, CooksonPeirce will continue operating a remote office environment until further notice.
We will keep you updated as more information becomes available
Thank you for your patience – stay safe and healthy!
The CooksonPeirce Team