COVID-19 Economic Aid Package Passed to Help Canadians Amid Pandemic

A massive $107 billion aid package has been passed to help Canadians as they cope with job losses and other economic challenges during the COVID-19 pandemic. Hundreds of thousands of Canada’s workers are reportedly facing unemployment.

After spending a late night in negotiations, the House of Commons passed the coronavirus aid package legislation early Wednesday morning. The Senate subsequently passed the legislation without any amendments. The bill received royal assent on Wednesday afternoon from Governor General Julie Payette.

The COVID-19 aid package, which includes the Canada Emergency Response Benefit (CERB), would increase Canadians’ access to employment insurance and other programs to help individuals and businesses who need assistance.

Initially, the bill that was proposed was worth approximately $82 billion, but the legislators agreed to increase that price to $107 billion to provide a more generous benefit that will be available to a larger number of Canadians affected by the coronavirus.

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Workers may be entitled to as much as $2,000 per month for four months as part of this coronavirus aid package. Canadians who are older than 15 and who earned more than $5,000 in the last 12 months but who are currently not earning income due to the pandemic would be eligible for the payment. In addition, freelancers who do not currently have access to unemployment insurance will have access to the CERB.

According to Finance Minister Bill Morneau, Ottawa has budgeted for $55 billion in tax deferrals and $52 billion in direct payments. Morneau says Canada is currently experiencing an “enormous” number of job losses; however, the government is hopeful that these losses will be temporary. On Wednesday, he urged senators to quickly approve a plan that would get money in the hands of Canadians who are facing unemployment during this COVID-19 pandemic.

Morneau also told senators that the government needs to make sure Canadians have jobs to go back to once the pandemic subsides.

Opposition Conservatives in the Commons described some of the initial parts of the bill as a liberal “power grab” but they were able to attain some concessions that led to the bill’s passage.

Several parts of the proposed bill were amended or removed, including the sections that granted the government unlimited powers to tax and spend until the end of next year. The current bill grants unlimited spending power to the government until June 2020.

The bill includes “sunset clauses” that apply to parts of the legislation that will expire unless they are reauthorized by Parliament.

In addition to the payments to Canadians who have lost income due to the pandemic, the proposed COVID-19 aid package also includes a number of other benefits to provide economic relief to those who are struggling.

The proposed aid package provides $2 billion in extra support for Canada Child Benefit payments, a six-month interest-free postponement of student loan payments, extension of the tax filing deadline to June 1, an Emergency Support Benefit that will provide up to $5 billion to workers who are facing unemployment but are ineligible for employment insurance, and doubling the homeless care program.

Other benefits from the COVID-19 aid package include an Emergency Care Benefit with a maximum disbursement of $10 billion, which would provide workers who need to stay home and who don’t otherwise qualify for paid sick leave or employment insurance with up to $900 biweekly for up to 15 weeks, and $305 million for an Indigenous Community Support Fund to address needs in First Nations, Inuit and Métis Nation communities.

Although the COVID-19 aid bill only needed the approval of one party’s caucus to pass the Commons, it required the support of every MP present to pass on the expedited one-day timeline. Due to the pressing need of the aid, the bill eventually received support from all parties and was passed early Wednesday morning.

The bill allows the government to have flexibility to address the financial needs of individuals and businesses in Canada while the pandemic is ongoing.

After it passed the coronavirus aid bill, the House adjourned until April 20.

Prime Minister Justin Trudeau delivered a news conference and announced that the government is attempting to find a balance between the need to help Canadians quickly during the COVID-19 pandemic with the need to stay accountable to Parliament. He delivered the news conference outside his residence, where he continues to self-isolate after his wife tested positive for COVID-19.

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