The U.S. Senate and the House of Representatives are set to vote today, Dec. 21, on a long-delayed second stimulus package after finally agreeing to a deal on Sunday.
The $900 billion package for coronavirus pandemic relief is expected to help the U.S. economy get to the spring when the hope is that the two COVID-19 vaccines approved earlier this month and now being distributed throughout the country will help mitigate – and eradicate – the spread of the virus.
This is the second-largest relief package ever given by the federal government, surpassed only by the $1.8 trillion CARES Act that was passed back in March, when the virus began to decimate the economy.
U.S. Travel Association President and CEO Roger Dow said in a statement that “Washington is delivering a huge holiday gift to U.S. businesses and workers after an incredibly challenging year.”
It’s noteworthy to mention that this package is half of what the previous stimulus was in large part because of the direct payments to most Americans. In March the government sent $1,200 to each eligible citizen; this time around, it is only $600.
According to the Washington Post, the aid package includes $284 billion for the Paycheck Protection Program that was created in the CARES Act to help small businesses. It also includes $15 billion to reinstate payroll reimbursements to airlines, which expired on Oct. 1 and resulted in thousands of layoffs and furloughs by the domestic carriers. Part of the deal includes airlines hiring back 32,000 workers that have been let go.
In addition to airline aid, CNBC is reporting that the new stimulus package includes $1 billion for airline contractors, $2 billion for airports and concessionaires, $14 billion for transit, $10 billion for state highways, $1 billion for Amtrak and $2 billion for private bus, school bus and ferry companies.
“It’s been a difficult road to get another round of much-needed legislative relief moving in Washington. We applaud the bipartisan group of senators that drove progress forward, and the congressional leadership for striking a bipartisan agreement to produce this desperately needed assistance. The agreed-upon provisions will give many suffering businesses a bridge to 2021,” Dow said in a statement.
It was the USTA that predicted travel would start to turn around in the second quarter of 2021 if everything fell into place, including another relief bill and a vaccine.
“More will be needed to restore the 4.5 million travel jobs lost in the travel and tourism industry, but the process that produced this agreement is hopefully a positive sign for what will be possible to achieve in the next Congress,” Dow added/ We urge swift action on this important legislation.”
President-Elect Joe Biden said previously that he considers any agreement reached on a second stimulus package to be “a down payment,” indicating he would like to see another round of relief after this one.
“We welcome the fact that Congress has finally done its job and provided new relief to distressed sectors of the economy, including a number of provisions ASTA and its members have been advocating for since April like the ability for hard-hit companies to apply for an additional PPP loan,” said Zane Kerby, ASTA President and CEO, said in a statement. “That said, more support for our members beyond this bill will absolutely [be] needed. Thankfully, this package is widely considered a short-term ‘bridge’ into early 2021 and it is clear that the next Congress will take up additional relief legislation in the 1st quarter. Something is better than nothing, and we appreciate the breathing room this bill will afford the vast majority of our members. But the fight continues, and will until the travel agency sector is restored to health.”