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Part of the Series A Guide to U.S. Coronavirus Stimulus Packages and Relief MeasuresMonetary Policy Programs
International Stimulus Efforts
The Families First Coronavirus Response Act (FFCRA) was signed into law March 18, 2020, as the second major legislative initiative designed to address COVID-19. The FFCRA, effective April 1 through Dec. 31, 2020, provided expanded nutrition assistance, paid sick leave, enhanced unemployment insurance coverage, free coronavirus testing, and increased federal Medicaid funding.
The table below shows how funds were apportioned for each provision of the FFCRA. Amounts listed include only direct appropriated funds. According to the Congressional Budget Office (CBO) and Joint Committee on Taxation (JCT), this law will increase federal deficits by $192 billion between 2020 and 2030.
| FFCRA Summary | ||
|---|---|---|
| Amount | Budget Line | Until |
| $500,000,000 | Nutrition - WIC program | Sep. 30, 2021 |
| $400,000,000 | Nutrition - TEFAP program | Sep. 30, 2021 |
| As needed | Nutrition - SNAP program | Sep. 30, 2021 |
| $100,000,000 | Nutrition - U.S. Territories | Sep. 30, 2021 |
| $250,000,000 | Nutrition - Seniors, Native Americans, and Disabled | Sep. 30, 2021 |
| As needed | Paid Sick Leave | Dec. 31, 2020 |
| As needed | Family and Medical Leave | Dec. 31, 2020 |
| $1,000,000,000 | Unemployment Insurance | Sep. 30, 2021 |
| $82,000,000 | Testing - Defense Dept. | Sep. 30, 2022 |
| $64,000,000 | Testing - Indian Health Service | Sep. 30, 2022 |
| $1,000,000,000 | Testing - Uninsured | Expended |
| $60,000,000 | Testing - Veterans | Sep. 30, 2022 |
| $15,000,000 | Operations Support | Sep. 30, 2022 |
| $3,471,000,000 | Total + additional as needed | |
Source: H.R. 6201 and FFCRA Summary
This provision addressed four nutrition programs: the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), The Emergency Food Assistance Program (TEFAP), the Supplemental Nutrition Assistance Program (SNAP), including an allowance to households normally eligible for free or reduced breakfast or lunch if the child's school has been closed due to COVID-19, and a program serving U.S. territories (Northern Mariana Islands, Puerto Rico, and American Samoa).
Additionally, the legislation allowed for waivers on:
Two provisions of the FFCRA provided up to two weeks (80 hours) of paid sick leave plus an additional 12 weeks (10 of those weeks paid) of expanded family and medical leave for reasons related to COVID-19.
Employees can substitute EPSLA leave or regular accrued leave for the 10 days of unpaid leave in EFMLEA.
The Emergency Paid Sick Leave Act (EPSLA) required employers with fewer than 500 employees to grant workers up to two weeks (80 hours) of paid sick leave:
Self-employed individuals could claim a sick leave tax credit equal to the amounts above (or an equivalent percentage of their "average daily self-employment income," whichever is less) for up to ten days. Full-time workers were eligible for 80 hours of paid leave. Part-time employees received paid leave equal to the average number of hours they work in a two-week period.
The Emergency Family and Medical Leave Expansion Act (EFMLEA) required employers with fewer than 500 employees to grant up to an additional 12 weeks of expanded family and medical leave, with 10 of those weeks paid at two-thirds the employee’s regular rate of pay, if the employee was unable to work (including telework) to care for a child whose school or child care provider was closed due to COVID-19.
There was no waiting period or accrual required for paid sick leave. Benefits were not retroactive and could not be carried forward. The employee was not required to find a replacement and was not required to use accrued sick leave before taking advantage of leave provided by EPSLA or EFMLEA.
The first two weeks (of 12) under EFMLEA could be unpaid, but the employee could use other paid leave if available including EPSLA leave. To be eligible for EFMLEA, the employee must have been covered under Title I of the Family and Medical Leave Act (FMLA) and have worked for the employer for at least 30 days. This leave included job protection as provided by the FMLA.
Self-employed individuals could claim up to $200 per day or 67% of their "average daily self-employment income" (whichever ws less) for up to 10 weeks of family leave.
Employers could exclude healthcare providers or emergency responders from EPSLA and EFMLEA leave. If the employer did allow leave, it had to be paid according to guidelines for EPSLA and EFMLEA.
Businesses with fewer than 50 employees could qualify for an exemption from paid sick leave or family and medical leave for child care if granting the leave would jeopardize the viability of the business.
Employers required to extend paid sick leave and/or emergency family and medical leave would receive refundable tax credits to offset the costs of providing this leave. The credits allowed would be for the full cost of benefits (leave) extended to employees (up to the limits noted above).
Employers would report total qualified leave wages and the related credits for each quarter on their federal employment tax returns (typically Form 941). In anticipation of receiving the credits, employers could fund leave wages (including health plan expenses and the employer's share of Medicare taxes) by withdrawing that amount from employment taxes and withheld income taxes required to be deposited with the IRS. Employers could also request an advance using Form 7200, Advance Payment of Employer Credits Due to COVID-19.
Self-employed individuals entitled to sick or family leave if employed by a regular employer could claim an income tax credit to offset their federal self-employment for any taxable year equal to their “qualified sick leave equivalent amount” or “qualified family leave equivalent amount.” They could do this by withholding an appropriate amount from estimated tax payments for 2020 or claiming the credit on their Form 1040 files in 2021.
The legislation increased unemployment benefits by nearly $1 billion in state grants. States with high unemployment and workers who had already exhausted benefits could receive additional funding.
States also gave access to interest-free loans to help pay unemployment benefits through Dec. 31, 2020, and states with a 10% or higher unemployment rate compared to the previous year received 100% federal funding for extended benefits. Normally, this was a 50% match.
The FFCRA included provisions to make testing for COVID-19 free to everyone without deductibles or copayments. Included waivers allowed testing costs to be covered by government programs or insurance.
The legislation also provided a temporary 6.2% increase in Medicaid payments to states so long as the states promised not to restrict eligibility or charge cost-sharing for COVID-19 testing services or treatment.
The Children's Health Insurance Program (CHIP) got coverage of diagnostic products related to COVID-19 along with additional funding for testing veterans, members of Native American tribes, and testing costs for uninsured Americans.
The FFRCA provision for paid sick leave expired on December 31, 2020. Soon after, it extended two times and lasted through September 30, 2021.
Beginning in March 2020, the federal government enabled states to provide extra nutrition assistance to eligible residents, known as emergency allotments. These were phased out across the country by March 2023.
Under federal law, employers are not required to provide sick leave. The FMLA provides up to 12 weeks of leave for certain medical situations. However, this time is not required to be paid.
The Families First Coronavirus Response Act was a major piece of legislation that expanded funding for programs aimed at helping individuals, families, and employers during the COVID-19 pandemic. Among its key provisions were additional funds for nutrition assistance and COVID-19 testing. FFCRA also enacted paid sick and family leave programs, which required employers to extend leave to workers under various medical situations in exchange for tax credits. FFRCA was effective through December 31, 2020, though many programs were extended in subsequent aid legislation.