Harshwal & Company is committed to supporting you through the unprecedented conditions that we are experiencing together. Our ongoing Remote Client Assistance
is expanded. Our entire team is working from home. We work as a family and all our team members are working safely from home with no change in pay.
If you have any questions, we'll get started on your request right away and respond on the same day.
The CARES Act
U.S. Congress passed and President Trump signed into law the CARES Act (the Coronavirus Aid, Relief, and Economic Security Act) — a significant piece of legislation that seeks to provide approximately $2 trillion worth of economic assistance to consumers and businesses. As per the 800 pages legislations, following are available for State and Local Government:
The legislation designates $339.8 billion for programs that will go to state and local governments. It is divided up to put $274 billion toward specific COVID-19 response efforts, including $150 billion in direct aid for those state and local governments running out of cash because of a high number of cases. Also, the rest will be allocated to specific state and local:
- $5 billion for Community Development Block Grants (The CARES Act authorizes a $5 billion allocation to the Community Development Block Grant. $2 billion would be distributed using the existing formula, $1 billion would go to states based on a formula developed by (HUD) for COVID-19 (the states will then allocate to both entitlement and non-entitlement communities), and the remaining $2 billion will go to the states and localities based on a formula to be developed by HUD within 30 days.
- $13 billion for K-12 schools: which will be distributed to school districts, awarded to states based on their current Title I allocations
- $14 billion for higher education: mostly sent directly to colleges through a formula that awards three-quarters of the dollars based on Pell student enrollment for those not exclusively in online education
- $5.3 billion for programs for children and families, including immediate assistance to child care centers. Additionally, child care providers with fewer than 500 employees are eligible for small business loans of up to $10 million, of which eight weeks’ worth of mortgage/rent, payroll, and utility payments will be eligible for loan forgiveness
- $28.5 billion for State and local (other)
Funds can be used for costs that:
- Are necessary expenditures incurred due to COVID-19
- Were not accounted for in the budget most recently approved as of the date of enactment of this section.
- Were incurred during the period that begins March 1, 2020, and ends Dec. 30, 2020.
Other Significant Provisions
Direct Payments to adults of $1,200 or less and $500 per child ($3,400 for a family of four) to be sent out in weeks. The amount of the payments phases out based on earnings of between $75,000 and $99,000.
Expanded Unemployment Insurance:Increases payments by $600 per week for four months on top of what state unemployment programs pay.
Amendments to the New Paid Leave Mandates: Lowers the amounts that employers must pay for paid sick and family leave under the Families First Coronavirus Response Act* (enacted March 19) to the amounts covered by the refundable payroll tax credit
The federal government is currently finalizing the details and protocols about how and when different programs and relief will be implemented. Harshwal & Company is closely monitoring these updating guidelines and will make the most updated and accurate information available to our clients.