Congress' $900 billion COVID relief package - what you need to know

Updated December 28: Second stimulus passed

After a lot of debate and uncertainty, Congress has announced a $900 billion Coronavirus relief stimulus package that was signed into law by President Trump on December 27, 2020. This second round of COVID relief provides some assistance to small businesses, unemployed workers, public transportation, schools, and vaccination distribution. Here's how the bill will impact you most likely:

Stimulus checks

This relief package will send out $600 direct stimulus payments to individuals. These checks will be provided to taxpayers living in households that earn $75,000 or less.

Eligible families will receive an additional $600 per dependent child, $100 more than what was given in the first round of relief.

Treasury Secretary Mnuchin announced the payments will start to go out before the new year, but the exact date has not been announced. Direct deposit payments will arrive fastest, while checks sent by mail could take until late January to start arriving.

Unemployment benefits

Those who are unemployed will receive an additional $300 weekly beginning at the end of December and continuing through March 14. However, Trump's delay in signing the bill means it will take a few days for government agencies and states to organize, minimizing the bonus unemployment benefit window from the original 11 weeks to 10 weeks. There's no language in the bill that would make payments retroactive.

This new agreement also extends two other pandemic unemployment programs that were created in the March 2020 CARES act. These programs will close to new applicants mid-March and phase out in early April for existing claimants.

• The Pandemic Unemployment Assistance program

This program expands unemployment benefits to freelancers, gig workers, independent contractors, and self-employed workers affected by the Coronavirus.

• The Pandemic Emergency Unemployment Compensation

This program provides an additional 13 weeks of payments for those who have used up their regular state benefits.

• Mixed Earner Unemployment Compensation

Individuals who earned at least $5,000 per year in self-employment income now receive an additional $100 weekly benefit, in addition to the benefit amounts they otherwise would be entitled to receive from traditional employment under state law.

Small businesses loans

The Paycheck Protection Program will reopen so that small businesses can apply for a second loan. This new bill designates $12 billion for minority-owned and small businesses and $15 billion for live venues, independent movie theaters, nonprofits, and cultural institutions.

School and child care funding

$82 billion in aid for K-12 schools and colleges, plus an additional $10 billion to support child care providers that have struggled due to the pandemic have been added to this bill.

Rental and nutrition assistance

Under this bill, eviction protections are set to extend through January 31. It also provides $25 billion in rental assistance for those who lost their source of income during the pandemic.

SNAP benefits will be raised by 15% for six months and the Pandemic-EBT program to families with children under the age of 6 will expand. It will now provide money to eligible families with school-age children instead of the free and reduced-price meals they would have received in school. $400 million will be sent to food banks through the Emergency Food Assistance Program and $175 million will be used for nutrition services for seniors.

Vaccine funding

$20 billion for the purchasing of vaccines and $8 billion for distribution costs is included in the bill. This allows the COVID-19 vaccine to be available at no charge to those who need it. It will also includes $20 billion to assist states with testing.

What does the January 15 cutoff mean?

This stimulus bill puts a deadline on the delivery of second-round payments. The IRS cannot send any second stimulus checks after January 15. If you do not receive your payment by then, you'll have to claim the amount owed to you as a "recovery rebate" credit on your 2020 federal income tax return.

Do you think this second round of relief will be enough? Share your thoughts in the comments below!