President-elect Joe Biden may be the House and the Senate need to come together now to negotiate what will be in a , which is still expected to include a worth as much as , and get it passed by Congress so that it can be placed on a . Assistance programs created with the in March have been nearly drained and the will expire Dec. 31 unless new legislation is authorized.after his Jan. 20 inauguration, but
The CARES Act established programs to help American individuals and small businesses financially affected by the coronavirus pandemic. President Donald Trump added more aid in August when he signedafter the CARES Act provisions were depleted and these final programs will lapse on Dec. 31. Both legislators and leading economists agree more aid is needed.
“We’ll have a stronger recovery if we can just get at least some more fiscal support,” Jerome Powell, chairman of the Federal Reserve, said Nov. 5, acknowledging that Congress has the power to approve stimulus funding. However, legislators have competing approaches.
The amount of funding for a new package remains an issue that can’t find bipartisan consensus. Republicans, led by Senate Majority Leader Mitch McConnell, want a smaller bill with less funding and no stimulus aid for Americans, while Congressional Democrats, led by House Speaker Nancy Pelosi, prefer a larger package with more programs and a second stimulus payment.
Without more stimulus funding, these key programs will expire by the end of 2020.
The extension of federal unemployment benefits
Individual states handle unemployment insurance claims, determining if a person is eligible, how much they receive and for how long they can collect. Though it varies from state to state, the. Starting on Jan. 1, those additional 13 weeks provided by the federal government are gone.
Some states have already backfilled the void on their own, including increasing their benefit period up to 59 weeks, according to the Center on Budget and Policy Priorities. Others, including Alabama, Arkansas and Utah, haven’t taken action on it, which could leave unemployed workers in those states without assistance as the new year begins.
The Pandemic Unemployment Assistance program for those who wouldn’t typically qualify
Another initiative of the CARES Act, the Pandemic Unemployment Assistance program, also known as , provided economic relief to those who wouldn’t typically qualify for unemployment: self-employed workers, contractors and gig workers. The PUA is set to end Dec. 31. If the federal government doesn’t extend it, it will be up to the states to determine whether they will step in on Jan. 1.
The additional $300 extra unemployment check per week
The average weekly unemployment benefit doesn’t always equal a worker’s earnings and typically ranges between $300 and $600. To help fill the gap, the president’s memo, and is expected to sunset unused.added a . When that bonus expired on July 31, Trump signed an executive memo paving the way for a smaller $300 weekly bonus (for a six-week period) with the expectation Congress would soon pass another relief package. That hasn’t happened, and most states have exhausted the six weeks of extra funding. The $300 bonus provision is set to end on Dec. 27, according to the
Eviction moratorium to protect renters and homeowners
The Centers for Disease Control, which called for a halt on evictions for failure to pay rent. This order by the agency covered more households, including renters in 43 million households, but it also has an expiration date of Dec. 31.provided limited protection on evictions by only focusing on homes backed with a federal mortgage loan or households that received some type of federal funding. The by the
Deferments of federal student loans
Students who are paying off federal student loans also received a reprieve under the, which gave them the option to defer their loan payments (and which paused the accrual of interest) until the end of September 2020. In August, . On Jan. 1, loan servicers will once again be able to charge interest on these loans and students may have to resume paying them off unless the servicers offer deferment options.
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