Federal relief could help rural residents, programs

Bill Knight column for Monday, Tuesday or Wednesday, 4-13. 14 or 15, 2020

Congress’s $4.2 trillion coronavirus stimulus package includes provisions that promise relief for rural America.

Parts of the $2.2 trillion Coronavirus Aid, Relief and Economic Stimulus Act (CARES Act, HR 748) and the $2 trillion Families First Coronavirus Response Act (FFCRA, HR 6201) feature a half dozen benefits of interest to non-metropolitan areas.

* First, all Americans with incomes less than $75,000 and who have Social Security numbers will receive $1,200. (Families also will receive $500 per child.) Payments will be less for those who have larger incomes. Disbursements will be issued by the Treasury Department through direct deposit or paper checks starting this week and continuing through the year.

Treasury and the Internal Revenue Service say many Americans will start receiving economic-impact checks soon, but those without direct-deposit capabilities may have to wait months.

The payments are intended to help those affected by layoffs, closed businesses and other economic effects of the pandemic. Some people aren’t required to file tax returns (such as low-income taxpayers, some seniors, Social Security recipients, veterans, and people with disabilities), so they’ll have to file a simplified tax return providing basic information including filing status, number of dependents and direct-deposit bank information. The U.S. government plans to develop an online portal for people to provide banking information so that they can receive the payments quicker instead of in the mail.

Officials said funds will be directly deposited in Americans’ bank accounts if the government has that information from your tax return. Without direct-deposit, Americans starting May 4 will receive paper checks from the IRS, which plans to process about 1 million checks a day – meaning it may require up to 20 weeks to complete the mailings. The House Ways and Means Committee said that the checks will be issued in reverse order, meaning people with the lowest income will receive payments first.

The website irs.gov/coronavirus is expected to provide more information, including how people can file a simple 2019 tax return.

In addition to direct payments, the laws also provide that:

* Funding for food stamps (the Supplemental Nutrition Assistance Program: SNAP) will increase $15.5 billion for anticipated needs, the Food Research and Action Center says. That’s significant for low-income rural Americans, but it also provides economic benefits and job creation for rural grocers. A dollar in SNAP generates $1.79 in additional economic activity, according to USDA’s Economic Research Service.

* Small-business loans for companies with fewer than 50 employees are available through a $349 billion Paycheck Protection Program from the Small Business Administration. Scheduled to last until June, these funds may be depleted soon, so Congress is debating a new interim measure of $250 billion generally backed by both Republicans and Democrats (though GOP leaders want fast passage and Democrats want to ensure everyone who qualifies will get help, including hospitals).

* Funding for rural health-care providers will come from billions of dollars already set aside, according to the National Rural Health Association, which reports that about 450 rural hospitals (some one-quarter of the nation’s non-metropolitan hospitals – face serious financial challenges. The legislation includes $150 million in rural Health Resources and Services Administration grants, a reprieve from previous cuts, and a 15% increase in COVID-19 Medicare reimbursements. Also, the measures also provide $200 million for improving tele-health services such as the Rural Health Care Program, which supports high-capacity broadband connectivity to some health-care providers.

* Farm programs could gain from almost $24 billion in new funds for farmers and ranchers. The Commodity Credit Corporation will receive $14 billion in new borrowing authority to help commodity producers concerning trade issues. The legislation also creates a $9.5 billion emergency fund to help produce growers, dairy farmers, cattle ranchers, local food systems, and farmers markets.

* State, county and local governments could be assisted by $150 billion governments, with $8 billion earmarked for local governments already in financial trouble and prohibited from deficit-spending due to balanced-budget restrictions.