Both Republican and Democratic lawmakers are in a hurry to reach an agreementpast . ONE of for those who meet will be part of that agreement, but key decision-makers are divided into partisans when it comes to recovering a .
Making a deal will require compromises on overarching issues such asand . On Thursday, for the first time, the unemployment requirements exceeded 1 million requests for the 20th straight week. That is up from 214,000 new unemployment claims a year ago this week, underlining tolls has already taken.
The final stimulus rescue package is planned to be worth more than just a single check. Here is the full range of financial support that may be available by the end of 2020, and what parts of the current proposal are likely to pass.
Second stimulus control: Designed to speed up spending
What it is: Aand families, based on annual income, age, number of dependents and other factors. The approved under the CARES Act has gone out to over 160 million Americans – as a check, as a prepaid credit card or by direct deposit. But there are problems and after three months, .
How it can help you: The payment is not taxable and you can use it however you want – to pay for food, housing, clothes and so on. The idea is that spending checks will help the economy recover faster.
Why we think a second check will pass: The CARES Act approved payments of up to $ 1,200 per eligible adult and the HEALS Act does. Meanwhile, the House of Representatives’ Heroes Act represented for $ 1,200 stimulus checks, but for more people. The White House supports another round of checks, making this a likely part of the final bill.
Additional unemployment benefits for people without jobs
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 officially , but legislators are investigating a new unemployment increase now.
How it can help you: An extra weekly payment in addition to the regular unemployment benefit gives individuals and families a step up. Shutting it down or reducing it can be devastating for unemployed workers and the economy.
Why we think it can happen: Republicans support the extension, but at a reduced rate. Democrats support an extension of the current rate of $ 600 and have ignored the Senate proposal, which would extend benefits based on 70% to 75% of lost wages, starting at $ 200 a week and eventually increasing to $ 500 a week with state support. The benefits expired without a short extension in place.
Following a political stalemate during the negotiations, GOP negotiators have reportedly signaled a willingness to consider the $ 600 weekly allowance, The New York Times reported on August 4.
Wage protection programs to encourage companies to retain employees
What it is: Intended to help you keep your job, the Paycheck Protection program provides foreseeable loans to small businesses as an incentive to keep employees on the payroll.
How it can help you: The program is designed to fund employed workers who would otherwise have lost their jobs during the pandemic. The program began with a rocky start, and it is not clear PPP 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, in July. “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“The Republican bill will target the hardest hit small businesses,” said Maine Senator Susan Collins during the rollout of the bill, including those with revenue losses of 50% or more last year.
Tax breaks for employee storage can help pay their workers
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: The HEALS Act contains additional tax relief for companies that employ and re-employ workers, and the democratically supported hero law is also based on the tax relief that was included in the first CARES law. And there is additional bipartisan support besides.
Reimbursement for work up to USD 450 per week
What it is: A temporary weekly bonus for unemployed workers who secure a new job or are exercised 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 go to laid-off workers who return to work.
Why we think it might not happen: The White House in May expressed interest in the bonus and Portman continues to support the idea, but it is not part of the proposal Senate Majority Leader Mitch McConnell and the other Republican senators presented last week.
Rental assistance to help ward off drafts
What it is: 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 evictions for a year and help cover the costs of the rental properties due to lack of rent payments..
Why we think it can happen: The House Democrats included an eviction moratorium in the Heroes Act. It was not part of the Senate proposal, but President Donald Trump on July 29 said that protectionism would be part of the package. As with unemployment insurance, Congress is looking to expand this separately while working on the final bill.
The payroll tax cut to give you more money in the bank this year
What it is: For several months, Trump has been pushing for the idea of including temporary tax breaks 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. The 32 million people who applied for unemployment insurance on July 18 would not benefit. “Workers would still be on the hook to pay these taxes next year,” the New York Times reported.
Why we do not think it will happen: Neither the Hero Act nor the current Senate plan includes a payroll tax cut. The White House continues to pursue the idea.
Until we know for sure what the final stimulus bill will provide, there are some resources to help you through the financial crisis, includingand ; ; and ; how ; and .
Julie Snyder contributed to this story.