Trump Enacts CARES Act to Combat COVID-19 Crisis


On March 27, 2020, President Donald Trump signed the ground-breaking CARES Act into law. Supported by the American Retirement Association, this coronavirus rescue package delivers extensive relief to individuals, small and large establishments, hospitals, and state and local governments impacted by the COVID-19 virus crisis. It is the largest rescue package in American history and the third aid package from Congress this month to effectively tackle the evolving pandemic.

The relief package encompasses direct payments to millions of Americans, billions in aid and loans to hospitals, and a forceful expansion of unemployment insurance. This bill comes days after the United States toppled China in number of coronavirus cases. The bill includes key retirement relief provisions such as:

  • $100 billion to hospitals responding to coronavirus to boost treatment and equipment
  • $300 billion in direct payment to Americans of $1,200 or less per person earning less than $99,000 per year, $3,400 for a typical family of four. Families could also receive payments of $500 per child.
  • $500 billion in loans and other money for large industries like airlines. Industries are, however, banned from using the funds towards CEO pay boosts, stock buybacks, and other requirements.
  • $260 billion to rapidly scale up the unemployment program, expanding coverage to four months and raising the weekly benefit by $600. This provision also covers nontraditional workers like freelancers, self-employed, and those working in the gig economy. The average worker who lost their job will receive 100% of their salary for up to four full months.
  • $45 billion for the Disaster Relief Fund
  • $27 billion for the development of vaccines, therapists, and various other public health response efforts, including $16 billion to construct the Strategic National Stockpile.
  • $3.5 billion to expand childcare benefits for first responders, health care workers, and others on the front line.
  • $1 billion for securing supplies under the Defense Protection Act

When enacting the bill in the Oval Office, President Trump stated, “We’re going to keep our small businesses strong and our big businesses strong. And that’s keep our country strong.”

In addition to this effort, President Trump announced thousands of ventilators will be heading to states across the country.

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