Overview of the Act

• The Coronavirus Aid, Relief, and Economic Security Act or the CARES Act is a "bill to provide emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic" and is yet to be passed by congress.
• The bill, a $1 trillion economic stimulus plan was introduced into Congress by senate majority leader, Senator on March 19, 2020, and it is still in the first stage of the legislative process.
• The bill provides emergency loans to distressed businesses, such as airlines, and suspends certain aviation taxes.
• The bill provides funding, forgivable bridge loans; and additional technical assistance for small businesses.
• The bill also provides $1,200 in tax rebates for individuals, with additional payments of $500 for reach qualifying child. The rebate begins to phase out when the income of individuals exceed $75,000 (or $150,000 for joint filers).
• The bill provides limits on employers' requirements to provide paid leave.
• The bill provides "special rules for certain tax-favored withdrawals from retirement plans; delays due dates for employer payroll taxes and estimated tax payments for corporations; and revises other provisions, including those related to losses, charitable deductions, and business interest".
• The bill provides for the temporary suspension of repayments for federal student loans and authorizes the Department of the Treasury to provide temporary guarantee for money-market funds.

• The CARES Act is the third legislative package in response to coronavirus. The first was an $8.3 billion emergency funding bill that was signed into law by President Trump on March 6 and the second was the Families First Coronavirus Response Act, which was signed into law on March 18.

Summary of Findings