The $2.3 trillion pandemic relief legislation signed by President Trump is meant to aid various big industries, small businesses, and laid-off workers, but it will also reward some unexpected special interests.
The bill will allow casinos to apply for billions in Treasury loans, prison inmates to get free video and phone calls during the pandemic, and grant banks several deregulation measures.
The following groups will get help from the bill, which is the most expensive legislation in U.S. history:
Casinos
Casinos will be able to access federal government loans for disaster assistance — both small-business casinos and larger ones that may need billions. In the past, like during Hurricane Katrina in 2005, they have been blocked from receiving tax breaks extended to other businesses because casinos aren’t considered essential. This time, they will get financial aid.
Prison inmates
Last week, Sen. Cory Booker, a Democrat from New Jersey, pushed for prisons to allow inmate phone calls and videoconferencing for free during the pandemic, which he succeeded in putting into the relief package. Attorney General William Barr has to sign off on this provision for it to be implemented.
Banks
The finance industry will be central in the distribution of the economic relief package, but it will also get some policy wins within it. These include a delay in tough new accounting standards, lower capital reserve requirements for community banks, and a guarantee on bank debt by the Federal Deposit Insurance Commission, according to the Washington Post.
Travel agents
Alongside airlines, travel agents who help consumers purchase tickets will also benefit from accessing $25 billion in loans. The bill says that the loans have been reserved for airlines and related eligible businesses that are “approved to perform inspection, repair, replace, or overhaul services, and ticket agents.”
The sunscreen industry
The package has language for the Federal Drug Administration to approve “innovative” sunscreens that use novel ingredients for over-the-counter sunscreen products. This is part of a long-running push to reform the over-the-counter drug industry as a whole. The provision would benefit beauty products company L’Oreal, a major player in the sunscreen industry that has its operations in Kentucky, Senate Majority Leader Mitch McConnell’s home state. Aides to McConnell said, however, that he did not push for the measure but rather that it was a result of a bipartisan group led by other senators working on the issue, according to Politico.
The agriculture industry
The industry will be provided $9.5 billion in emergency aid to help various producers, from fruit and vegetable growers to dairy farmers and cattle ranchers. Senators with large rural areas, such as John Hoeven from North Dakota, advocated for this provision in particular.
Food retailers
Grocery stores and restaurants will be aided by the bill because it fixes a “retail glitch” in the 2017 tax cut that inadvertently raised costs for businesses in the grocery and restaurant industries. The fix will enable such businesses to use expenses for qualified improvement to the facilities in their property as a tax deduction.
