Massachusetts Senate unveils $ 3.66 billion bill on coronavirus emergency aid with bonuses for essential workers, investment in mental health

A $ 3.66 billion plan by state senators to spend about half of the remaining federal dollars on corona aid reflects many of the priorities set out in a housing law passed last week – the two departments up for swift action while struggling to complete the package before lawmakers leave in two weeks.

Senate President Karen Spilka said the Senate’s proposal would cover “immediate and critical needs” in mental health care, food security, small business struggles and access to housing while building state investment in local health councils.

“At this critical time, we must not lose sight of the big picture,” Spilka said, stopping the Senate’s “careful planning” of allocating the $ 5.3 billion in federal aid available to the Legislature.

The bill, released Wednesday afternoon by the Senate Ways and Means, proposes to put about $ 1 billion into health care, $ 1.7 billion into economic development and workforce development, $ 600 million in housing and $ 450 million to combat climate change.

Senators are also seeking to set up commissions tasked with overseeing spending to ensure the money is distributed fairly and reaches those most affected by the COVID-19 pandemic.

The Senate’s bill comes on the heels of Parliament passing its own $ 3.82 billion version of a law on coronavirus spending, which is similarly dependent on ARPA cash and excess tax dollars.

The Senate version contains many of the same spending priorities, after leaders from both branches collaborated in the interest of speeding up a bill ahead of the looming break in mid-November, when lawmakers pause for about seven weeks.

The largest ticket items in both bills are a proposed $ 500 million in unemployment insurance relief for businesses and $ 500 million in bonus pay for essential workers who remained on the job during the COVID-19 pandemic.

Qualified public and private sector workers who earned up to 300% of the federal poverty line – or $ 79,500 for a family of four – during the pandemic will be eligible for the substantial worker bonuses. Checks will be cut from $ 500 to $ 2,000 depending on how many workers qualify for the payout, lawmakers said.

Both bills would also make $ 200 million in tax breaks available to small business owners who would have to pay personal income tax on previous state and federal benefits.

Legislators say they would pay for these and other proposals in the bill with a combination of $ 2.5 billion in American Rescue Plan Act funds and up to $ 1.45 billion in surplus tax revenue.

The Senate bill also proposes $ 400 million for a “mental and behavioral health reserve,” according to the summary, which has been a high priority for Spilka.

The House passed its version of $ 3.82 billion in ARPA spending last Friday night, with the bill eventually growing by about $ 170 million after lawmakers considered more than 1,000 changes.

The Senate’s long-awaited Senate emergency spending bill comes five months after the Fed deposited nearly $ 5.3 billion in unlimited coronavirus aids to Massachusetts, and as Gov. Charlie Baker and administration officials have repeatedly pressured lawmakers to get the money out quickly of the door.

Senators can table amendments to Senate Ways and Means recommendations by Friday. The full Senate will then debate the ARPA spending proposal in a formal assembly next Wednesday.