Federal Legislators pass a $2 Trillion COVID-19 Economic Stimulus Bill “CARES Act” Including More than $1.5 Billion in Additional EDA Funding

March 30, 2020

Last Friday, March 27, 2020, the Senate and House passed the CARES Act, an economic stimulus bill (H.R. 748), and the President signed it into law.

A summary of the funding breakdown in the economic stimulus bill can be found here. This bill is the third phase of funding passed in response to COVID-19, following the passage of HR 6074 and HR 6201.

The bill includes $1.5 billion in supplemental funding for the Economic Development Administration (EDA), and funding will be used to help revitalize local communities after the pandemic. Specifically, EDA assistance will be used to help rebuild impacted industries, for example, tourism or manufacturing supply chains, capitalize local funds to provide low-interest loans to businesses of all sizes, and support other locally-identified priorities for economic recovery.

The economic stimulus bill also includes a minimum of $1.5 billion allocated for each state. The total aid package of $2 trillion is the largest economic rescue package in the history of the US. The funding bill is intended to help mitigate the economic impacts of the COVID-19 crisis.

In addition to the supplemental funding for EDA, the bill also includes additional funding for the following priorities that may be of interest to OVRDC regional partners:

  • USDA Rural Development
    •  $25 million to support Distance Learning and Telemedicine
    • $100 million for the ReConnect Program to help ensure rural Americans have access to broadband
    • $20.5 million to support $1 billion in Business and Industry loans
  • Small Business Administration (SBA)
    • Provides $562 million to ensure that SBA has the resources to provide Economic Injury Disaster Loans (EIDL) to businesses that need financial support during this difficult time
    • $10 billion in direct grants to businesses that do not qualify for the EIDL program
    • $17 billion to have SBA step in and make six months of principle and interest payments for all SBA backed business loans
  • Department of Transportation – Transit Systems
    • $25 billion for public transit operators to protect public health and safety while ensuring transportation access to jobs, medical treatment, food, and other essential services remain available during the COVID-19 response
  • HHS Health Resources Services Administration (HRSA)
    • $275 million for HRSA, including $185 million to support rural critical access hospitals and rural and tribal health and telehealth programs
  • Department of Homeland Security (DHS) Disaster Relief Fund
    • $45 billion to provide the immediate needs of state, local, tribal, and territorial governments to protect citizens and help them recover from the overwhelming effects of COVID-19
  • Department of Labor (DOL)
    • $360 million for DOL to invest in programs that provide training and supportive services for dislocated workers, seniors, migrant farmworkers, and homeless veteran
  • HUD Community Development Block Grants (CDBG)
    • $5 billion to allow states, counties, and cities to respond rapidly to COVID-19 and the economic and housing impacts caused by it

Share This Post