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Photo: Brendan Smialowski/AFP via Getty Images

The White House is asking Congress for a $1 trillion coronavirus relief and economic stimulus plan that would include industry-specific bailouts and payments to individual taxpayers.

The big picture: This is more than the $900 billion that the U.S. government initially committed to bailouts in the 2008 financial crisis.

The proposal, penned by the Treasury Department, includes:

  • Payouts to individual Americans: $500 billion.
    • This would be done via two separate checks of equal amounts, one on April 6 and one on May 18.
    • The specific dollar amounts would be means-tested, meaning it would be based on income level and family size.
    • Each round of payments would be identical in amount, per the Treasury.
  • Airline industry bailout: $50 billion.
    • This would take the form of secured loans to passenger and cargo air carriers, with the Treasury to set interest rates and other terms.
    • Limits would be placed on executive pay increases until the loans were repaid.
  • Other affected industries bailout: $150 billion.
    • Secured loans or loan guarantees would be extended to "other critical sectors of the U.S. economy experiencing severe financial distress due to the COVID-19 outbreak."
    • Among the sectors raising their hands for bailouts, largely or wholly for the purpose of paying workers: Hotels ($150 billion requested), casinos, cruise line operators and shopping mall operators.
  • Small business interruption loans: $300 billion.
    • Employers with 500 employees or fewer would be eligible, and would have to keep paying all their workers for eight weeks from the date of the loan.
    • The government would guarantee 100% of six weeks of payroll, capped at $1,540 per week per employee, with the Treasury to set interest rates and other terms.

Historical comparison: The amount budgeted in 2008 for TARP — the Troubled Asset Relief Program — was $700 billion. The money was aimed at bailing out big banks and auto companies. The same year, the government designated $200 billion to rescue Fannie Mae and Freddie Mac, the giant mortgage enterprises.

  • In actuality, far less than the total $900 billion was spent.
  • By the time the programs were declared ended in 2014, the government had actually turned a profit on those bailouts.
  • According to ProPublica's Bailout Tracker, a total of $634 billion was spent on TARP and the Fannie and Freddie bailouts: "Money has been coming back in two ways: $390B of principal has been repaid, and the Treasury has collected revenue from its investments of $364B. ... In total, the government has realized a $121B profit as of January 31, 2020."

The bottom line: While there were big moral and ethical implications to the rescue of the banking and auto industries — which were seen as having largely caused their own problems — many of the companies that are currently foundering are blameless for their predicament.

  • This will make it easier for the public to support sweeping federal appropriations.
  • Public support will be public important if the coronavirus emergency drags on and forces even more federal expenditures and guarantees.

Read the proposal.

Go deeper

Judge rules in favor of Black officer fired for stopping colleague's chokehold

Former Buffalo police officer Cariol Horne said she heard a handcuffed man say he couldn't breathe when a colleague placed him in a chokehold. Photo: Lisa Maree Williams/Getty Images

A New York court on Tuesday reinstated the pension of former Buffalo police officer Cariol Horne, who was fired for intervening when a white colleague had a Black man in a chokehold during a 2006 arrest.

Driving the news: State Supreme Court Judge Dennis Ward noted in his ruling similar cases, like the death of George Floyd. Ward said the role of other officers at the scene in such instances had come under scrutiny, "particularly their complicity in failing to intervene to save the life of a person to whom such unreasonable physical force is being applied."

Updated 3 hours ago - Politics & Policy

Biden accepts Pelosi's invitation to address Congress in late April

Photo: Jim Lo Scalzo/EPA/Bloomberg via Getty Images

President Biden has accepted House Speaker Nancy Pelosi's invitation to address a joint session of Congress on April 28, the White House confirmed Tuesday night

Why it matters: This will be Biden's first speech to both the House and Senate since taking office.