On March 25, 2020, by a vote 96 to 0, the U.S. Senate unanimously passed a bipartisan$2.2 trillion stimulus bill, the largest ever in the nation’s history, known as the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. The $2.2 trillion Senate bill is part of an overall $6 trillion stimulus package, according to White House Director of the National Economic Council Larry Kudlow.
The day before Senate vote, Kudlow explained that the $6 trillion stimulus package would comprise of $2 trillion in direct assistance from Congress and $4 trillion in Federal Reserve lending power.
Of the $2.2 trillion Senate bill, Senate Majority Leader Mitch McConnell (R-Ky.) described it as a “wartime level of investment into our nation,” with Senate Minority Leader Chuck Schumer (D-N.Y.) praising it as both a “Marshall Plan for medical needs” and as “the largest rescue package in American history.”
The bipartisan Senate bill would provide taxpayers with a one-time rebate check of $1,200 for individual adults ($2,400 for joint-filing), and $500 for each child in a household. The payments would be phased out at $75,000 in adjusted gross income based on 2018 tax returns.
The Senate bill also includes $500 billion for a corporate credit program administered by the Federal Reserve, establishing an oversight board with an inspector general at the Treasury Department for the $500 billion corporate liquidity program; $357 billion in forgivable bridge loans for small businesses that keep paying their employees; $150 billion for state and local governments, $130 billion for hospitals; paying the full salaries of furloughed workers for up to four months; $45 billion towards disaster relief; and $27 billion to resupply the nation’s Strategic National Stockpile of masks, gowns, gloves, ventilators, and other medical supplies.
In addition to the $2.2 trillion from Congress, the Federal Reserve will be prepared to pump more than $4 trillion into the economy and credit markets. On March 25, 2020, during the White House Coronavirus Task Force daily briefing, Treasury Secretary Steven Mnuchin further elaborated. “Treasury [Department] will have additional authorities. We have $500 billion that we can use to work with the Federal Reserve for emergency programs that will create up to an additional $4 trillion, if needed, to support American business and American workers in an unprecedented way.”
Article I, Section 7, Clause 1, also known as the “Origination Clause,” of the U.S. Constitution explicitly states: “All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.”
Because of this requirement, the Senate used H.R. 748, previously known the “Middle Class Health Benefits Tax Repeal Act of 2019,” which originally passed in the House on July 17, 2019, as a “shell” or legislative vehicle to advance the new bipartisan CARES Act. The entire original language of H.R. 748 was stricken from the bill and replaced with the full text of the 880-page bipartisan CARES Act, by way of a substitute amendment.
The bill will now go to the House of Representatives for a vote before heading to the President’s desk to be signed into law.
Though President Trump was elected to “drain the swamp” of Big Government, should he sign these measures into law, he would be condoning Big Government programs strongly resembling FDR’s “New Deal.”
Injecting the country with this kind of socialist stimulus syringe will truly plague taxpayers with trillions in additional debt for years to come.
Please phone, email, and tweet your U.S. representative and urge him or her to oppose and vote against the bipartisan CARES Act (H.R. 748). Although we provide a way to easily email members of Congress, we know from long experience that it takes a lot more interaction with your federal legislators to get your point across than that provided by emails alone. That’s why we provide an easy way not only to email them, but to phone, tweet, and even video message them.
Scroll down or to the left of your screen to email, phone, tweet, and video message your U.S. representative and senators to urge them to oppose the colossal $2.2 trillion CARES Act (H.R. 748).
Stop the $6 trillion coronavirus bailout!