The Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27th, will provide over $2 trillion to counteract economic declines related to the Coronavirus pandemic. In addition to economic relief directed towards individuals, families, small businesses and corporations, important provisions of the CARES Act provide fiscal relief to states and localities to help them respond to this crisis.
In these fact sheets, MBP summarizes the federal stimulus from two perspectives: how fiscal relief and other provisions will help Missouri respond to this crisis by bolstering critical public services; and how new federal “recovery rebates” and expanded unemployment programs will provide relief directly to Missourians who are most impacted by the crisis.
Portions of the CARES Act that will help Missouri respond to this crisis include:
- Fiscal Aid to State & Local Governments to help address funding shortages.
- Education Support for states, school districts and institutions of higher education for costs related to the Coronavirus.
- Additional investments to a range of existing programs and new programs including child care assistance, support for hospitals and disaster relief.
Although this bill did not include funding assistance for state Medicaid services, an increase in federal funds to help support state Medicaid programs was included in the previously passed Families First Coronavirus Response Act, which will provide critical assistance. This paper describes what is known about each of these funding streams and their impact on Missouri.
Among the most critical provisions, the CARES Act provides “recovery rebates” for nearly every household and expands unemployment assistance for those most impacted by job loss due to the declining economy. By boosting families’ incomes, the measures improve consumer demand and mitigate the economic decline. This paper summarizes these provisions, along with ways that Missouri could maximize their benefit for Missourians.