Congressional negotiators announced agreement Sunday on a $900 billion COVID-19 economic relief package, delivering help to businesses and individuals and providing money to deliver newly approved vaccines.

Lawmakers plan to vote on the stimulus legislation today. AIM will continue to monitor the action by Congress to advance this legislation.

The agreement follows several months of negotiations and advocacy by business groups, states, and members of the Massachusetts Congressional delegation to provide stimulus dollars to states and struggling businesses. AIM has been particularly focused on securing additional resources to deal with states like Massachusetts facing a $6 billion Unemployment Insurance Trust Fund deficit by 2022.

Funding for states and municipalities, along with other controversial provisions such as liability protection for businesses and the manner in which CARES money will be managed under the next administration were ultimately not included in the legislation.

The following key items of importance to Massachusetts employers were included:

• Provides another round of $600 stimulus checks to most adults and $600 per child.
• Provides a $300 federal unemployment supplement and temporarily keeps in place pandemic-era programs that expanded unemployment insurance eligibility. It was not immediately clear how long each of those measures would last.
• Provides $30 billion for procurement and distribution of the coronavirus vaccine.
• Provides billions of dollars to help schools and colleges.
• Provides relief to hospitals treating COVID-19 patients.
• Re-purposes more than $560 billion in money set aside by the CARES Act in March but not spent.
• Provides $284 billion to Paycheck Protection Program (PPP) small-business loans. It would direct another $20 billion in small-business grants and $15 billion to live event venues.
• Allows businesses that have received Paycheck Protection Program small-business loan to deduct them – as negotiators anticipated when Congress drafted the CARES Act in March.  Expenses related to PPP loans for small businesses would be deductible.
• Ends surprise medical billing for emergency and scheduled care.
• Provides $25 billion in rental assistance for families facing eviction.
• Strengthens the earned-income tax credit and child tax credit for families facing unemployment or reduced wages.
• Provides a $13 billion increase to the Supplemental Nutrition Assistance Program.
• Expands Pell Grants for students who need help paying for college.

AIM, along with other national associations and business groups, has been urging Congress to override recent Treasury Department guidance that prevented deduction of PPP expenses.  We are grateful to the Massachusetts Congressional delegation for its steadfast support for ensuring that the original intent when passing the CARES act in March was to make expenses related to PPP deductible.

Deductibility of the PPP expenses will have a material impact on many small businesses in the commonwealth that are struggling to survive this winter.

AIM now urges the Massachusetts House and Senate to take urgent action on legislation filed by Governor Baker to freeze Unemployment Insurance rates and fund the system through bonding. Those actions will ensure that all claims are paid to individuals, that the trust fund is stabilized with a low interest loan and that Massachusetts will avoid statutorily triggered unemployment insurance tax rate hike in first months of 2021.

AIM Members looking for additional information, please contact Vasundhra Sangar, Associate Vice President for Government Affairs (AIM). 

To learn more about AIM’s efforts on federal issues and how you can engage elected officials regarding this legislation and next steps please contact membership@aimnet.org or sign up for updates directly by updating your preferences online. 

Click here to learn more about AIM’s work on unemployment insurance issues at the state and federal level.