Senate Majority Leader Mitch McConnell. Photo: Mandel Ngan/AFP via Getty Images

Senate Majority Leader Mitch McConnell's proposal for a "Phase 3" stimulus package in response to the coronavirus outbreak includes cash payments to many Americans and billions for small and large businesses.

Why it matters: The plan would be part of one of the largest and most expensive stimulus packages in American history.

Details:

Individual payments:

  • The plan includes direct payments of $1,200 to individual Americans making less than $75,000 annually, and $2,400 for eligible married couples making less than $150,000 combined, with an additional $500 for every child.
  • The amount of money is reduced by $5 for every $100 that a person earns over $75,000, so Americans earning more than $99,000 will get nothing.
  • Income levels, marital status, and number of children would be based on 2018 tax filings.

Businesses and corporate loans:

  • $50 billion in loan guarantees for passenger air carriers.
  • $8 billion for cargo air carriers.
  • $150 billion for other large businesses.
  • $300 billion for small businesses.

Delays filing deadline for tax returns:

  • Extends the April 15 filing date to July 15.

Retirement funds:

  • Waives penalties for early withdrawal from qualified retirement accounts for coronavirus-related purposes of up to $100,000.

Education loans:

  • Enables the Secretary of Education to defer student loan payments.
  • Allows students who were forced to drop out of school due to coronavirus to keep their Pell grants.
  • Gives colleges and universities flexibility to continue work-study payments to students who cannot work due to coronavirus closures.
What's next:

Negotiations between McConnell, Senate Minority Leader Chuck Schumer (who has his own plan), and Treasury Secretary Steven Mnuchin will now kick into gear.

  • McConnell pledged Thursday that the Senate would not return to their home states until the new legislation is passed.
  • "We need to take bold and swift action as soon as possible," he said. "The Senate is not going anywhere until we take action."

Read the plan.

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