Early Details on the Next Stimulus Bill
The Senate has reconvened to discuss a new coronavirus stimulus package, according to CNBC.
Most of the measures from the March stimulus bill expire by the end of next week, such as enhanced unemployment benefits and an eviction ban on federal housing. State reopening plans have stalled as coronavirus cases have surged. On June 27, about 32 million Americans were collecting unemployment benefits, according to the US Labor Department. Congress promised to pass a new stimulus bill in the near future.
Nothing is in writing yet, but these are the topics lawmakers are discussing.
- Eviction ban
Federal and state-wide eviction bans are set to expire soon if they haven't already. If these measures expire, it would risk putting tens of millions of families on the streets. Almost one-third of households deferred housing payments at the beginning of the month. Experts are estimating that $100 billion is needed to assist households with payments.
- Payroll tax cut
President Donald Trump has been a strong advocate for a payroll tax cut, but so far it's unclear if lawmakers back the idea. Payroll taxes are used to fund Social Security and Medicare. Employees typically pay 7.65 percent of their paychecks, matched by employers, for these programs. The Trump administration wants the tax to be temporarily eliminated.
However, a payroll tax cut would have no effect on those who are currently unemployed. High earners would benefit the most from this preposition. Furthermore, this strategy would weaken Social Security which is already in a weak state.
- Stimulus check
On Tuesday, Senate Majority Leader Mitch McConnell stated that Congress wants “another round of direct payments to help American families keep driving our national comeback.” Lawmakers have alluded towards targeting those at lower income levels than in the first round, but there are no concrete details about who would eligible right now.
- Unemployment insurance
More than 25 million people are still receiving the $600 federal unemployment boost, but that boost ends soon. Unemployment benefits have been a controversial topic in Congress. Democrats believe that the $600 boost should be extended. Republicans believe that the checks discourage employees from returning to work because many are making more on unemployment than they did prior to the pandemic. However, economists disagree with Republican claims.
President Donald Trump believes that unemployment benefits should be cut to around $200 per week.