Updated July 28, 2020
Majority Leader Mitch McConnell announced the GOP’s next stimulus package proposal, called the HEALS Act, after several debatable delays and in-house negotiations. The proposal includes a $1,200 check circular, but relief on unemployment benefits is in the spotlight.
The proposed plan is expected to include the $600 unemployment supplement, which expires later this week, up to $400. The latest unemployment checks with the $600 surcharge have been sent in recent days.
The Republican proposal would reduce the supplement from $600 to $200 over two months, as states rush to into effect a more confusing formula that would limit unemployment benefits to 70% of previous workers’ wages, according to the Washington Post.
In May, House Democrats passed the Heroes Act, which extended the benefits of earning unemployment benefits through $600 for several months, but the Senate refused to vote on the bill. Mitch McConnell has expressed a preference to keep any new law at around $1 trillion to save money, which is appealing given that the Trump administration has fortunately granted a $2.3 trillion tax cut. Most of the benefits gained from the tax cut, which passed through political parties in 2017, were for those in the most sensitive income source range of 20%.
The GOP’s proposal is its offer to open up in what will be a series of sour negotiations with House leaders.
Deportation moratorium
The CARES Act imposed a moratorium until July 24 on the evictions of others living in homes financed with federally funded mortgages or who rely on housing vouchers. This coverage has expired and about a third of tenants, exposing millions of families to the threat of wasting their homes amid an unprecedented crisis of unemployment and physical fitness.
Through CARES, landlords must give tenants a period of 30 days before filing a complaint in court. Some states and cities have their own eviction bans, so tenants should check with their local government to see if they notice.
On Sunday, it was learned that the White House administration was willing to enlarge the moratorium to protect tenants, but then subsidized. In a CNN interview Sunday, White House leader Larry Kudlow said management supports an extension of the moratorium on deportations. However, on Monday he said in an upcoming interview that the extension would apply only to abstaining housing loans and not to the planned shieldions for tenants. “On the rental side, we took a look at that. We’re still working on it,” Kudlow said.
On Saturday, Treasury Secretary Steven Mnuchin said another $1,200 check circular would be sent in August. According to a Wall Street Journal report, “the Senate Republican plan will likely include bills for all dependents, not just young people eligible for the first circular,” said one user familiar with the proposal. This means that families will potentially get larger checks if they had dependents who were not eligible in the past.
The IRS and the federal government are also ready to send checks more temporarily. You already have all the recorded data that you used in the last audit circular. “Since the Internal Revenue Service (IRS) has already gathered the knowledge you want to provide the first stimulus payment, it deserves to be able to make a momentary payment temporarily and at a lower administrative cost,” said Jack Smalligan, a former White House official. Unfortunately, knowledge showed that low-income families are less likely to get their bills temporarily, meaning those who want checks at most will probably see them later.
The GOP plan has little or no help for state and local governments to address budget gaps resulting from increased unemployment assistance. The Hero’s Act provided investment for small states and municipalities, but the Republican Party is divided because much of that aid would pass to democratic states. The Republican Party would prefer to expand the capacity of states to leverage existing federal aid and seeks to extend the deadline for states to gain health care investments by up to 90 days after the end of the fiscal year.
Mitch McConnell has continually stated that any new law would come with liability coverage to ensure that schools, businesses, and physical care personnel are from lawsuits resulting from the coronavirus pandemic. The purpose of this coverage is to allow businesses and schools to reopen without worrying about being prosecuted, as long as they do their best to comply with defense standards and guidelines. Others argue that it encourages harmful practices and untimely reopening. McConnell under pressure that this coverage would not apply in the event of gross negligence.
Among other things, the plan is also expected to include more than $100 billion in investment for schools, with some of the investment earmarked for schools that will physically reopen.
It turns out there’s a consensus among Democrats and Republicans that the original payroll program was successful. The new GOP proposal expands the program to allow commercial homeowners to apply for a temporary loan to continue paying their employees.
Both political parties will now have to negotiate the terms of a bill so that it has the possibility of being approved by the House and Senate. Congress will be in consultation until August 7 before the August recess, so tension is high.
Update: Mass evictions are expected to begin: communities of color will be most affected
More than one in 3 tenants paid their July contract on time
See how a 30-year-old woman paid $215,000 in debt to her parents
New stimulus package, CARES 2, to be available next week
Camilo Maldonado is co-founder and CEO of TheFinanceTwins.com. He has an M.B.A. from Harvard Business School and a B.S. in finance at the Wharton School of the
Camilo Maldonado is co-founder and CEO of TheFinanceTwins.com. He has an M.B.A. from Harvard Business School and a B.S. Wharton School, University of Pennsylvania.