Just because President Donald Trump signeddoes not mean that the stimulus package under negotiation has cratered for good. , so much is true, but there is much that the measures do not cover because a full-fledged coronavirus bill could still.
While one of the areas of overlap in agreement is one, Democrats and Republicans still face hot-button topics including an extension of wage protection, a , tax breaks for companies to keep workers employed, another look at and more.
“Republicans need to get back to the negotiating table!” Senate Minority Leader Chuck Schumer tweeted Monday. Trump also used the platform to say that if Schumer and House Speaker Nancy Pelosi want to talk, they have his phone number.
Here are the key benefits that can directly affect you and how likely it is that they will be part of a final relief package, if any. And here’s how it’s proposedwhich went in March. We update this story frequently.
The second stimulus control aims to increase 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 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 qualified 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 work
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 “. The plan requires states to cover some of the costs, and some governors say the administration’s plan does not go far enough.
Where the negotiations stood before: 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.
It is still uncertain whether a real emissions moratorium
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 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 of rental property owners due to lack of rent payments..
Where it says now: Trump’s executive order included a commitment to, but no direct action has been taken yet.
“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 on Monday.
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 seen to extend this separately while it worked on the final bill.
Wage protection programs to encourage companies to retain 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: PPP 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.
Trump’s reduced payroll tax may put more money in your 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. Usually, 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.