WASHINGTON – The $ 2.3 trillion spending package that Congress passed by an overwhelming majority on Monday night has a bit of everything.
Consolidated from two key bills – a $ 900 billion stimulus package to tackle the economic impact of the COVID pandemic and a $ 1.4 trillion spending measure to fund the government through September 30th – contains the Legislation Money for direct payments to millions of families as well as measures to distribute vaccines and raise wages for the military.
But it also includes controversial provisions extending tax breaks for race car tracks and business lunches, millions for closed venues, and requiring carbon monoxide detectors to be installed in public housing. It includes billions in foreign aid, which often attracts the ire of conservatives, and money for President Donald Trump’s border wall, which angered progressives.
Trump has signaled that he could veto the bill and stated that some provisions, such as foreign aid and money for cultural institutions, have no place in a bill designed to help the country weather a coronavirus pandemic which killed nearly 330,000 people nationwide and closed thousands of businesses.
In a video he tweeted Tuesday night, Trump called the bill a “disgrace” for not making enough direct payments and spending too much on foreign aid (although the budget he presented to Congress earlier this year was roughly the same Financing level provides). .
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However, many of these tax breaks and controversial spending regulations are included in the $ 1.4 trillion spending bill that came with the business cycle, not the business cycle itself. Government watchdog groups say this does not excuse what Congress approved.
It’s a “treasure deal” for defense companies, “guarantees high levels of farm subsidies well into 2021 and attacks dozens of other special provisions” that will not be found by lawmakers days or weeks after leaving the Capitol, ” said Steve Ellis, president of Taxpayers for Common Sense, a non-partisan surveillance group that tracks government spending.
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Here are some of the most controversial sections of the second largest stimulus package in US history.
Foreign aid programs
In his surprising speech the night he denounced the stimulus package passed by Congress, Trump condemned billions in funding programs abroad.
All funding proposals challenged by the president were in line with or slightly below the budget allocations Trump had proposed during the negotiations.
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Some of the contributions include $ 505 million in aid to Central American countries; $ 25 million for programs to promote gender equality and promote democracy in Pakistan; US $ 1.3 billion in military aid to Egypt; and $ 219.5 million for Southeast Asian nations.
Extended military budget, offerings from defense companies
The negotiated collective bill also includes an increase in military spending and contracts for military contractors through 2021.
The funds approved US $ 696 billion in military funding, including US $ 23.3 billion to build 10 new warships and US $ 9.6 billion for 96 F-35 fighters. Progressive Democrats opposed the budget increase, advocating provisions that “would reduce Pentagon spending to prevent waste, fraud and abuse while maintaining support for staff and families.”
The White House also initially opposed portions of the Military Expenditure Act, arguing that they enabled the military’s ongoing conflicts overseas.
Deductions for the three martini lunch
Democrats opposed a provision that would allow businesses to deduct two full years worth of business meals when filing taxes. Democrats ridiculed the measure as a “three martini lunch” for the rich.
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According to the current tax code, only half of these costs can be deducted. The cost of the new benefit, which the White House claimed would help restaurants affected by the pandemic, is projected to have tax breaks of $ 6 billion for businesses over the next decade.
Keep live venues afloat
About $ 15 billion is earmarked for performing arts centers, independent cinemas, and other cultural institutions that have been particularly hard hit by the introduction of social distancing measures to limit the spread of the virus.
The “Save Our Stages” law is only intended to help those venues that have already closed or are threatened with closure.
Proponents of the bipartisan effort say the grants would provide the financial support necessary to keep the venues alive, pay the staff, and sustain a critical business sector for communities across America.
Only those sales outlets that have already closed or are threatened with closure can receive grants.
Help for cultural institutions
More than $ 40 million has been allocated to the John F. Kennedy Center for the Performing Arts, Washington, DC’s cultural gem, of which many trustees are appointed by the president.
The money includes $ 26 million for operations, maintenance, and security and an additional $ 14 million for capital improvements.
The Kennedy Center is often on questionable expense lists, but it’s not the only cultural organization getting support in the package. Taxpayer dollars are also given to the US Holocaust Memorial Museum ($ 61.4 million), the National Endowment for the Arts ($ 167.5 million), and the Smithsonian Institution (more than $ 1 billion).
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The National Foundation for the Arts, the National Foundation for the Humanities, and the Kennedy Center also received funding under the state funding agreement. Trump rejected the measure.
Money for the border wall
The spending bill again includes government aid to fulfill one of Trump’s key election promises: building a partition on the U.S.-Mexico border.
The $ 1.375 billion for the border wall isn’t as much as the nearly $ 2 billion Trump wanted, but it’s more than his critics expect from taxpayers. The inclusion of the money also undermines his election promise that Mexico would pay for the structure.
A dispute with Congress over funding the border wall in December 2018 resulted in a 35-day government shutdown. There’s no suggestion this time around a lack of wall funding is one of the reasons Trump might veto the bill.
A “NASCAR tax break”
The package also extended a tax break for racetrack owners.
Known as the “NASCAR Tax Break,” these owners could earn up to $ 224 million in profits over a 10-year period to write off construction and renovation costs.
Founds Smithsonian Women’s and Latino History Museums
Legislation tied to the Government Funding Act approved the creation of Smithsonian Museums of Latino and Women’s History. Like all Smithsonian programs, the museums would be funded through the sharing of private donations and public funds.
The move was deeply rejected by Senator Mike Lee, R-Utah.
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“The last thing we need is to further divide an already divided nation into a number of separate but equal museums with separate identity groups,” he said earlier this month.
Tax breaks for the spirits industry
The liquor industry was a big winner from the bill that consistently secured billions in tax breaks, despite studies showing that alcohol consumption rose sharply during the pandemic.
The measures include a reduction in excise tax on beer, which would likely cost $ 1 billion over 10 years. an excise tax break for domestic winemakers valued at $ 2.2 billion; and a $ 5.7 billion brand of distilled liquor tax break.
Costs of the passing of the president
The stimulus package also includes $ 9.9 million earmarked for spending on the change of president. This funding will help President-elect Joe Biden’s administration take office next year. The bill also includes at least $ 8 million earmarked for the Trump administration to aid in the process.
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While Trump is not controversial at first sight, he would essentially fund the exit from office he is fighting in court and in Congress by questioning the election results.
Post financing
The aid package negotiated includes a provision that converts a $ 10 billion loan to the United States Postal Service into direct aid. The funds are to be used to support USPS logistics and to provide workers with personal protective equipment and other necessary assistance.
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The law also provides for six days of mail delivery and continues to prevent the consolidation or closure of small rural and other small post offices, measures previously opposed by the President.
