Onehas urged Congress to look into sending one for eligible Americans to keep them afloat as one continues to deepen. On Monday, Senate Republicans will unveil CARES Act 2, their name for the next bailout package, and begin discussions with the Democratic-led House of Representatives.
“Control is there,” White House economic adviser Larry Kudlow told CNN on Sunday. “The repayment bonus is there. The retention bonus is there. There will be breaks for small tax credits for small businesses and restaurants. It will all be there.”
Monday’s proposal in the Senate will be the first step towards solidifying. Until a final decision has been made and signed into law, expect that rounds of bipartisan negotiations will change some of the terms. Legislators have until , the last day before another month of recess, to decide.
We have gathered some of the many ideas that politicians from both sides of the aisle have proposed in addition to aand assessed how likely they are to be taken into account in the legislative debate. We are also looking at how these ideas can affect you if they become part of the next relief package. This story is updated frequently.
New Improved Unemployment Benefits for Unemployed Americans
What it is: Onefor persons who applied for unemployment for the first time or who had already collected unemployment. The program originally approved by the CARES Act provided an additional $ 600 per week and , but legislators are investigating a new increase in unemployment now.
Why we think it can happen: Republicans have already supported an extension, but at a reduced rate, saying $ 600 a week is too generous. “We will not pay people more money to stay home than to work,” US Treasury Secretary Steven Mnuchin told CNBC on Thursday.
But with new unemployment claims exceeding $ 1 million every week for more than four months and a total of 31.8 million people claiming benefits this month, the White House and Senate plan to extend the benefit. The Senate’s proposal to extend the benefits “will be based on about a 70% pay rise,” Mnuchin said last week. But Republicans could push for weekly payments of $ 100 or $ 200, CNBC reported.
How it can help you: An extra weekly payment in addition to the regular unemployment benefit gives individuals and families a leg up and cutting it off or reducing it can be devastating for both unemployed workers and the economy.
“Every dollar in unemployment insurance increases financial expenses by $ 2,” said Lily Roberts, director of economic mobility at the Center for American Progress. “The Economic Policy Institute estimates that lending out the $ 600 unemployment insurance extension would in itself lead to more job losses than what happened in the recession of the early 1990s or early 2000s.”
Wage protection programs to help companies save existing jobs
What it is: Intended to help you keep your job, the Paycheck Protection program provides small loans to small businesses as an incentive to keep employees on the payroll.
How it can help you: No stimulus control, the program is designed to keep employees employed who would otherwise have lost their jobs during the pandemic. The program began with a rocky start and it is not clear that it met the goals set by Congress for it.
“Overall PPPs have not retained many paychecks,” wrote Joshua Gotbaum, a guest researcher in economic studies at the Brookings Institution. “A thorough study found that small business owners eligible for PPP fired people as quickly as other companies,” he said.
Why we think it could be extended: Senate Majority Leader Mitch McConnell said the new stimulus bill will include a second round of wage protection, “with a special eye on hard-hit companies.”
Tax relief for employees to help pay wages
What it is: Under the program, an employer can receive a refundable tax credit for salary paid to an employee during the pandemic. The employer can then use the credits to deduct – and even get a refund of – taxes they owe.
How it can help you: Again, it is not a direct payment to you, but the program encourages companies to keep workers on the payroll.
Why we think it can happen: Kudlow indicated that it will be part of the Senate proposal and we know from the democratically backed hero law that there is support to build on the tax credits that were included in the first CARES law. There is additional bipartisan support besides.
Return to work bonus of up to $ 450 per week
What it is: A temporary weekly bonus for unemployed workers who secure or reuse a job on top of their wages. As suggested by Senator Rob Portman, a Republican from Ohio, the bonus would be $ 450 per week.
How it can help you: According to Portman’s plan, the weekly bonus would serve as an incentive for laid-off workers to return to work.
Why we think it can happen: The White House in May expressed interest in the bonus and Portman continues to support the idea. Although not on the short list of proposals mentioned in the current negotiations, Kudlow suggested that it be included in the CARES 2 proposal.
Rental assistance to help ward off drafts
What it is: About 5% of tenants for April, May and June have not paid the full rent, according to the National Multifamily Housing Council. This plan would help tenants pay rents and help landlords with expenses with less rent money coming in, especially since the United States faces a potential. ““.
How it can help you: The rental assistance program would temporarily help you pay the rent if you are eligible, put a stop to eviction for a year and help cover costs for rental property owners due to lack of rent payments.
Why we think it can happen: Kudlow mentioned that the Senate proposal will extend the draft moratorium. In all cases,.
The payroll tax cut so that workers get a bigger paycheck
What it is: For several months, President Donald Trump has been pushing for the idea of including temporary tax cuts in his salary in the next stimulus package. The proposal may include a reduction in both the employer’s and employees’ share of the payroll tax.
How it can help you: If you have a job, a payroll tax cut would allow you to keep more of your income each check. The plan would not help those who are unemployed and do not receive a paycheck. As of July 4, the nearly 32 million people claiming unemployment insurance would not benefit.
Why we do not think it will happen: Neither the Hero Act nor the current Senate plan includes a payroll tax cut. Even Trump seems to have given up the plan.
“I would have preferred a payroll tax cut on top of that control,” Kudlow said on Sunday. “But whether it’s politically, it does not work.”
Until we know for sure what the next stimulus bill will provide, here are resources to help you through the financial crisis, includingand ; ; and ; and how to do .