Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Eniola Odetunde/Axios

D.C. remains deadlocked on the next stimulus package, days after extended unemployment benefits ended and days before PPP is set to expire.

Where it stands: One unresolved issue that hasn't gotten enough attention is a proposed expansion of the employee retention credit, which could have a significant impact for companies that have experienced severe revenue declines.

The backdrop: The CARES Act established the initial version, a refundable payroll tax credit that could cover up to $5,000 per employee, for businesses that had suffered at least 50% revenue loss.

  • Caveat #1: If a company received a PPP loan, it wasn't eligible.
  • Caveat #2: If a company had more than 100 employees who remained working full time, including remotely, it wasn't eligible.
  • Caveat conclusion: For most companies, this credit wasn't too valuable.

What's new: Both new stimulus plans — HEROES Act (D), HEALS Act (R) — are much more generous.

  • HEROES increases the credit to up to $36k per employee (or up to 80% of wages paid per retained employee), with sliding-scale revenue eligibility for companies with revenue drop of between 10% and 50%. It increases the limit on working employees to 1,500.
  • HEALS increases the credit to up to $30k per employee (or up to 65% of wages paid per retained employee), with the revenue decline threshold cut to 25%. It increases the limit on working employees to 500.
  • Neither proposal restricts companies that received PPP loans, although they're silent on companies that participate in a possible PPP extension.

The bottom line: There are still partisan differences, but both sides are moving in the same direction on this, which suggests more flexibility than on thornier issues like school funding and liability protections.

Go deeper

Oct 2, 2020 - Politics & Policy

House passes revised $2.2 trillion stimulus bill

Photo: Tom Williams / Getty Images

The House passed Democrats' revised $2.2 trillion coronavirus relief bill 214-207 on Thursday as 11th-hour negotiations between leaders for a bipartisan deal continue.

Why it matters: The legislation, a slimmed down version of the House's initial $3.4 trillion HEROES Act, is Democrats' last ditch effort to strike a stimulus deal with the White House and Senate Republicans before Election Day, though many lawmakers admit they think the legislation has little chance of becoming law.

Updated 34 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Politics: Fauci says he accepted Biden's offer to be chief medical adviser "on the spot" — The recovery needs rocket fuel.
  2. Economy: U.S. economy adds 245,000 jobs in November as recovery slows — America's hidden depression: K-shaped recovery threatens Biden administration.
  3. Education: Devos extends federal student loan relief to Jan. 31
  4. States: New Mexico to allow hospitals to ration coronavirus medical care
  5. Vaccine: What vaccine trials still need to do.
  6. World: UN warns "2021 is literally going to be catastrophic"
  7. 🎧 Podcast: Former FDA chief Rob Califf on the vaccine approval process.
2 hours ago - Health

A safe, sane survival guide

Photo: Luka Dakskobler/SOPA Images/LightRocket via Getty Images

We all know, it’s getting worse.

Reality check: Here are a few things every one of us can do to stay safe and sane in coming months:

Get Axios AM in your inbox

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!