“Meet us halfway and we will be able to reach an agreement that meets the needs of the American people,” House spokeswoman Nancy Pelosi said on Sunday. “We have to agree. We have to meet halfway.”
“We reached an agreement with the Democrats,” said Treasury Secretary Steven Mnuchin a few moments later. “We both want to send more checks to American workers. We wanted to send more PPPs to the hardest hit companies. We said let’s pass laws on the things we can agree on.”
On the table, a and programs to pay workers and protect their jobs from cuts. Here are the key benefits that can directly affect you and the likelihood that they will become part of a final bill, if there is one. We update this story regularly.
The second stimulus check aims to speed up spending
What is it: Aand families based on annual income, age, number of dependent people and other factors. The Goods approved under the CARES law have been issued to over 160 million Americans – by check, prepaid credit card, or direct deposit. But there were problems and after three months .
How it could help you: The payment is not taxable and you can use it however you want – to pay for food, housing, clothing, etc. The idea is that issuing checks helps the economy recover faster.
Why we think a second exam will be passed: The CARES Act approved payments of up to $ 1,200 per eligible adult, as did the HEALS Act. The House of Heroes Act, meanwhile, required $ 1,200 stimulus checks, but 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 work
What is it: Afor people who have applied for unemployment for the first time or who have already collected unemployment. The program, originally granted by the CARES Act, officially provided an additional $ 600 a week But the legislature is currently considering a further rise in unemployment.
How it could help you: An additional weekly payment on top of normal unemployment benefits gives individuals and families a head start. Cutting or reducing could be devastating for the unemployed and the economy.
What Trump’s Memorandum Brings: The aim is to create a program to provide $ 400 per week with a (retroactive) start date until August 1st, ending when the program reaches US $ 25 billion, or for weeks of unemployment ending December 6th, 2020 at the latest end, whichever comes first. “
Where there were negotiations before: Republicans support the renewal, but at a reduced price. Democrats support an extension of the current $ 600 rate and have opposed the Senate’s proposal to extend benefits based on 70% to 75% of lost earnings, starting at $ 200 a week and gradually increasing to $ 500 over time USD per week with government support. The benefits expired without a short-term extension.
Payroll Protection Program to encourage companies to stick to their employees
What is it: The Paycheck Protection Program (PPP) is designed to help you keep your job and offers small businesses forgivable credit as an incentive to keep employees on payroll.
How it could help you: The program is designed to fund workers who would otherwise have lost their jobs during the pandemic. The program got off to a rocky start and it is not clear whether the PPP has achieved the goals set by Congress.
“Overall, PPP has not received many paychecks,” wrote Joshua Gotbaum, a visiting economist at Brookings Institution, in July. “A careful study found that PPP-enabled small businesses lay people off just as quickly as other companies,” he said.
Why we think it could be expanded: The Republican proposal is aimed at the hardest hit small businesses, Maine Senator Susan Collins said during the introduction of the law. This includes those with revenue losses of 50% or more from the previous year.
A tax credit for employee retention could help pay employees
What is it: Under the program, an employer can receive refundable tax credits for wages paid to an employee during the pandemic. The employer can then use the credits to deduct any taxes they owe and even get a refund.
How it could 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 could happen: The HEALS law provides further tax relief for companies hiring and re-hiring workers, and the Democratic-Backed Heroes Act also builds on the tax credits that were part of the original CARES law. There is also additional support from both parties.
Return-to-work payment of up to $ 450 per week
What is it: A temporary weekly bonus for the unemployed who secure a new job or are reinstated in addition to their wages. As proposed by Senator Rob Portman, an Ohio Republican, the bonus would be $ 450 a week.
How it could help you: According to Portman’s plan, the weekly bonus would go to redundant workers who return to work.
Why we think it can’t happen: The White House expressed interest in the bonus in May and Portman continues to support the idea, but it is not part of the proposal that McConnell and the other Republican Senators tabled last week.
An eviction moratorium could still be part of a bill
What is it: This plan would help tenants pay the rent and help landlords spend with less rental money, especially with the US facing potential. “. “
How it could help you: The Rental Assistance Program would temporarily help you pay the rent if you qualify, withhold evictions for a year, and cover the cost of renting property owners due to rental default drops..
Where it is now: Trump’s executive order included an eviction order, but the details are blurry.
“The Minister of Housing and Urban Development will take measures, as appropriate and in accordance with applicable law, to promote the ability of tenants and homeowners to avoid evictions or foreclosures due to financial difficulties caused by COVID-19,” the implementing regulation reads.
The eviction protection was not part of the Senate proposal, but President Trump said July 29th the eviction protection was part of the package. As with unemployment insurance, Congress initially tried to extend this separately while it worked on the final bill.
Trump’s payroll tax cut would bring you more money in the bank this year
What is it: Trump has been promoting the idea for months of including temporary wage tax cuts in the next stimulus package. The Executive Order signed by Trump includes the postponement of certain taxesfor people making less than $ 100,000.
How it could help you: If you have a job, you can keep more of your income with every check by lowering your income tax. The plan would not help those who are unemployed and not receiving a paycheck. The 32 million people who applied for unemployment insurance on July 18 would not benefit. Workers would have to repay those taxes the following year, the New York Times reported.
Will it stay?:: Trump signed a memorandum on Aug. 8 to pass the wage tax cut bill, but it’s not clear if he has the legal right to do so. Typically, financial decisions such as tax cuts are approved by a vote in Congress, not a presidential order. We will have to wait and see if legal action will be taken against the order. Neither thatincludes a wage tax cut.
Until we know for sure what the final economic stimulus plan will bring, there are a few resources that can help you weather the financial crisis. We look upand ;; ;; and ;; how one ;; and .
Julie Snyder contributed to this story.