With everyone from Senator Bernie Sanders, White House Chief of Staff Mark Meadows and President Donald Trump himself urging the opposition to shut down their congressional affiliations briefly and, the focus is again on pushing through a new bill for coronavirus.
While Trump signedAugust 8, including a , only a broader bill can hope to prevent , help finance securely and maintain . A final relief bill is also expected to send one of for .
If negotiations resume in Washington sooner rather than later and a final bill is adopted (stand-alone bills are also an option), here are some of the benefits that may come your way. This story is often updated with new developments.
A second incentive check to encourage spending
What it is: Aand families, based on annual income, age, number of dependents and other factors. The approved under the CARES Act has been sent to over 160 million Americans – as a check, as a prepaid credit card or via direct deposit. But there have been 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 so does the $ 1 trillion HEALS Act. The House of Representatives $ 3 trillion hero team also demanded $ 1,200 stimulus payments, but for more people. The White House supports another round of checks, making payouts a likely part of the final bill.
2. Another unemployment benefit for non-working workers
What it is: Onefor persons who applied for unemployment for the first time or who had already collected unemployment. The CARES law provided an additional $ 600 per week, but it officially benefits . Legislators from both sides want to renew this.
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.
What Trump’s memorandum provides: It aims to create a program to provide $ 400 per week with a (retroactive) start date of August 1 and demands that it end when the program reaches “$ 25 billion or for weeks of unemployment ending by December 6, 2020, depending on what The plan requires states to cover some of the costs, but some governors say the administration’s plan does not go far enough. There is also the question of how many people it can realistically cover given the $ 25 billion limit, and the fact that a congressional act is typically required to approve this type of spending.
Where the negotiations stood before: Republicans support the extension, but at a reduced rate. Democrats support a resumption of the $ 600 interest rate that has now expired and have agreed to 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 aid. The benefits ceased without a short extension on the spot.
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: PPP is intended to encourage companies to retain employed workers who would otherwise have lost their jobs during the pandemic. The program began with a rocky start, and it is not clear the PPP met the goals set by Congress for it.
Why we think it could be extended“The Republican bill will target the hardest hit small businesses,” said Maine Senator Susan Collins during the drafting of the bill. This includes those with revenue losses of 50% or more compared to last year.
4. Tax breaks for employee stays can 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 for – taxes they owe.
How it can help you: Again, this 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 breaks for companies that hire and hire workers, and the Democratic Supported Heroes Act is also based on the tax breaks that were included in the first CARES law. And there is additional bipartisan support besides.
Reimbursement for work up to $ 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 presented by Senate Majority Leader Mitch McConnell and other Republican senators.
Until we know for sure what the final stimulus bill will provide, there are some resources to help you through the financial crisis. We are watchingand ; ; and ; how ; and .
6. An eviction moratorium, but it is uncertain
What it is: There have been two proposed parts at one point or another. The first is to prevent landlords from rejecting tenants, which was part of the now expired CARES Act. The second is a plan to help tenants pay rents and help landlords with their mortgage and other expenses in light of reduced rent money coming in. The United States is facing a potential eviction and housing crisis that could lead to up to 40 million people losing their homes. That’s about 12% of the U.S. population.
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 for rental property owners due to lack of rent payments..
Where it says now: Trumpsdoes not in fact prevent evictions. There are currently none state ejection protection, however, some States may have some.
“The Secretary for Housing and Urban Development shall take measures, where applicable and in accordance with applicable law, to promote the ability of tenants and homeowners to avoid eviction or foreclosure due to financial difficulties caused by COVID-19,” reads the executive order.
“It’s less of an executive order and more of an ‘executive proposal,'” Schumer tweeted Aug. 10.
Emission protection was not part of the Senate proposal, but has been a topic that Trump has pushed for inclusion. As with unemployment insurance, Congress had initially looked to extend this separately while working on the final bill.
What’s the story of Trump’s payroll tax cut?
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 directive that Trump signed includes postponing certain taxesfor people earning less than $ 100,000.
How it can help you: If you have a job, a payroll tax cut would allow you to keep more of your income from each paycheck for now. 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 and employers would still have to pay these taxes the following year.
Will it hold up? Trump signed a memorandum on August 8 to adopt the pay cut, but it is not clear if he has the legal right to do so. Usually, financial decisions such as tax cuts are approved by a congressional vote, not a presidential order. We have to wait and see if legal action is brought against the order. Norincludes a payroll tax cut.
Julie Snyder contributed to this story.