Will it happen or will it not? After President Donald Trump issuedSaturday, as an attempt to circumvent the stalemate in Washington’s stimulus package negotiations, the bill hangs in the balance. But than.
“Meet us halfway and we can have an agreement that satisfies the American people,” House Spokeswoman Nancy Pelosi said on Sunday, urging Republican lawmakers to return to the table this week. “We have to agree. We have to meet halfway.”
“We agreed with the Democrats,” Treasury Secretary Steven Mnuchin said moments later. “We both want to send more checks to the American workers. We wanted to send more PPP to the hardest hit companies. We have said, let’s pass legislation on the things we agree on.”
One of the areas of overlap is a, but Democrats and Republicans are still not on the same page when it comes to how much to be in dealt with in Saturday’s executive action.
Below we look at the key benefits in addition to another direct payment that can directly affect you and assess the likelihood that they will be part of a final relief package, if there is one. We update this story frequently.
The second stimulus control aims 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 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 control 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.
More 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 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 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, ending when the program reaches $ 25 billion or for weeks of unemployment ending by December 6, 2020, depending on what occurs first “.
Where the negotiations stood before: Republicans support the extension, but at a reduced rate. Democrats support an extension of the current interest rate of $ 600 and have ignored the Senate proposal, which would increase 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.
Wage protection programs to encourage companies to stick with employees
What it is: Intended to help you keep your job, the Paycheck Protection Program (PPP) provides affordable 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 drafting of the bill. This includes those with revenue losses of 50% or more compared to last year.
Tax breaks for employee livelihoods 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 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.
An eviction moratorium can still be part of a bill
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 is facing 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..
Where it says now: Trump’s executive order included an eviction moratorium, but the details are fuzzy.
“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,” the executive order states.
Emission protection was not part of the Senate proposal, but Trump on July 29 said that ejection protection would be included in the package. As with unemployment insurance, Congress had initially seen to extend this separately while it worked on the final bill.
Trump’s reduced payroll tax would 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 executive order 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 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 have to pay back those taxes the following year, the New York Times reported.
Will it hold up?: Trump signed a memorandum on August 8 to pass legislation to reduce wages, but it is not clear if he has the legal right to do so. In general, economic 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 taken against the order. Norincludes a payroll tax cut.
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 .
Julie Snyder contributed to this story.