Visit the WHO website for the latest updates and information on the coronavirus pandemic.
For many, the big news is about– Senate Republicans plan for the next stimulus package – var . But one for maybe not the piece that has the biggest impact on your budget. If the bill goes, it will also be renewed (at a much lower threshold) and set aside more than $ 100 billion for school opening.
We are far from getting a final bill and bipartite negotiations are already tough. In a statement Tuesday, House Speaker Nancy Pelosi criticized the plan’s $ 400 reduction in unemployment insurance, saying it “destroys families’ financial security” at a time when many have lost their jobs as a result of the pandemic. This reduction in particular is expected to be a sticking point for the Democrats, who may even jeopardize the entire stimulus proposal.
There has also been disagreement among Republicans, including Texas Senator Ted Cruz, who expressed concern over the bill’s price tag, calling it “the wrong attitude,” CNN reported.
Here are the key elements that Democrats, Republicans and White House officials are pushing to include in the next stimulus package – and how likely we are to get them before August 7, the last day before the Senate will break for its month-long August withdrawal. This story is often updated with new information.
Second Stimulus Control: Designed to help you spend
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 – either as a check, prepaid credit card or direct deposit. But not without problems and after three months .
How it can help you: The payment is not taxable and you can use it but you want to pay for food, housing, clothes and so on. The idea is that spending the controls will help the economy recover faster.
Why we think a second check will pass: CARES makes approved payments up to $ 1,200 per eligible adult and so does the HEALS Act. The House of Representatives HEROES Act meanwhile demanded a $ 1,200 stimulus check, but for more people. The White House also supports another round of checks, making this a likely part of the final bill.
More 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.
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.
Why we think it can happen: Republicans support the extension, but at a reduced rate, saying $ 600 a week is too generous. “We learned what we knew then,” Senator Chuck Grassley said on Monday, “that when you pay more for not working than they should be allowed to work, what do you expect? People will not work. And what this country needs are more workers. “
Democrats support a $ 600 rate hike and oppose 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 the state support. As no agreement on a second package is closed, the two sides may decide to extend the benefits by a few weeks while hampering the details of the bill: We have discussed a short-term extension to [unemployment insurance] and the drafts so that we have some time to negotiate before it ends, “Finance Minister Steven Mnuchin said on Wednesday.
Wage protection programs to help companies hang on to employees
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: The program is designed to fund employees 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. “A careful study [PDF] found that PPP-eligible small businesses fired people as quickly as other businesses, he said.
Why we think it could be extended“The Republican proposal will target the hardest hit small businesses,” said Maine Senator Susan Collins on Monday, including those with revenue losses of 50% or more compared to last year.
Tax breaks for employee livelihoods would help pay 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: Grassley said the HEALS Act includes additional tax breaks for companies such as hired and rehire workers, and the democratically backed Heroes Act is also based on the tax credits included in the first CARES law. And there is additional bipartisan support besides.
Return to work bonus of up to $ 450 each 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 McConnell and the other Senate presented on Monday.
Rental assistance to keep drafts at bay
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 costs for rental property owners due to lack of rent payments.
Why we think it can happen: The House Democrats included an eviction moratorium in their proposed hero law. It was not part of the Senate presentation on Monday and.
The payroll tax reduction so that employees receive a larger payroll check
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.
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 .