The Democratic-led U.S. House of Representatives narrowly passed a $3 trillion stimulus bill, known as the Heroes Act, last month that would provide an additional $1,200 direct payment per family member and $600 per household, close to $1 trillion to state, local, territorial and tribal governments, $75 billion to COVID-19 testing and other measures, and $10 billion to strengthen the Payroll Protection Program, among other provisions.

With 20.5 million jobs lost in the shutdown as of mid-May, and as many small businesses have been forced to close permanently due to lack of revenue, the federal government has continued to monitor and modify its economic response to the pandemic.

The Cares Act included provisions for aid to households, with payments up to $1,200 per adult, based on income; a Paycheck Protection Program offering forgivable loans for small businesses to help cover payroll costs for up to eight weeks; payroll tax deferrals and tax credits; and loans and guarantees for passenger airlines, cargo airlines and businesses critical to national security; and aid to hospitals and health systems.

He said regulatory exemptions are going to make a difference for small businesses, which account for more than half of all new jobs in the U.S.

“The more than $2.5 trillion in the CARES Act will not create new wealth or serve as a net ‘stimulus’ to the economy.

Ian Vasquez, director of the Cato Institute’s Center for Global Liberty and Prosperity, said, “I am skeptical about creating whole new authority at the Federal Reserve by allowing it to lend credit to the private sector, in addition to essentially financing the federal government virtually at any level it wants to.