Highlights from Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act)

May 15, 2020
Highlights from Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act)

On May 12, 2020, the Speaker of the House, Nancy Pelosi, introduced a $3 trillion bill, titled the HEROES Act, to provide further assistance to individuals, state and local governments, and public and private businesses impacted by the COVID-19 pandemic. The text of the bill can be found here.

The HEROES Act is a follow up to the CARES Act, a $2 trillion COVID-19 stimulus bill, signed into law on March 27, 2020. The text of the CARES Act can be found here.

The House is expected to vote on the HEROES Act on May 15, 2020. The Senate has indicated it may not vote on the bill until after Memorial Day, May 25, 2020. The bill as currently written could be amended by the House or Senate or may not pass at all. Nevertheless, here are a few highlights from the HEROES Act as it is currently written:

• Individuals would receive another stimulus check of $1,200. Families with children would receive a stimulus check of up to $6,000.

• Businesses would be provided with further tax incentives to maintain employees on their payroll.

• Student loan borrowers would receive up to $10,000 in student loan forgiveness.

• Local governments would receive $375 billion to mitigate the financial repercussions of COVID-19. $56 billion of that would go to small local governments. An article concerning how local governments and non-profits can currently seek funding can be found here.

• $90 billion would be allocated to the U.S. Department of Education to distribute to the states. Of that $90 billion, the U.S. Department of Education could retain up to $30 billion for oversight. The money allocated to each state would go to Governors to be distributed. The money could be used for payroll.

• The application period for the Paycheck Protection Program (PPP) loan would be extended from June 30, 2020 to December 31, 2020. $659 billion would be added to the program and it would now include non-profits. An article concerning how the PPP loan operates under the CARES Act can be found here.

• States and local governments would be provided with $9.6 billion for emergency aid services in responding to the pandemic.

• $3.6 billion would be provided to the states to help provide safe elections.

• The 2020 Census deadlines would be extended by four months.

• $100 billion would be provided to the Housing and Urban Development (HUD) to assist tenants with paying rent. The bill would also put a moratorium on evictions for twelve months.

The attorneys at Lyons Gaddis are closely monitoring the legal changes and the governmental responses to the COVID-19 pandemic. Stay tuned for further information as this unprecedented global pandemic, and the government’s response unfolds.