Congress leaders on Sundayof 900 billion financial aid package that includes to Americans and $ 300 in increased unemployment over the next 10 weeks, said House Speaker Nancy Speaker and Senate Minority Leader Chuck Schumer.
The $ 600 checks will only go out to individuals earning less than $ 75,000 a year or couples earning less than $ 150,000. Similar to the CARES Act, individuals earning between $ 75,000 and $ 100,000 will gradually receive smaller payments, while individuals earning $ 100,000 or more will not receive a stimulus check.
Supported children will receive $ 600 this time instead of $ 500.
The deal was based on a $ 908 billion two-part proposal that originally omitted so-called stimulus checks, and instead focused on giving unemployed workers an additional $ 300 in weekly unemployment benefits. But a last-minute addition to the package allowed for another round of payments – though the $ 600 checks represent half of the $ 1,200 payments distributed to about 160 million Americans under the $ 2 trillion Coronavirus Aid, Relief and Economic Security Act. or CARES, in the spring.
Some people said the $ 600 payments would be way too low, and former Labor Secretary Robert Reich wrote on Twitter that the package comes at a time when COVID-19 infections and deaths are far higher than last spring.
President Trump said Tuesday night that he. He tweeted a video urging Congress to increase stimulus control.
“I urge Congress to amend this bill and increase the ridiculously low $ 600 dollars to $ 2,000, or $ 4,000 for a couple,” Mr. Trump in the recorded message.
Some senators, including Bernie Sanders of Vermont, had insisted that any new relief bill include another $ 1,200 round of checks for low- and middle-income Americans. Some economists reiterated some of Sanders’ concerns, noting that while the $ 900 billion package was better than nothing, it was far from the funding needed to get families and the economy on a stronger footing.
More funding may be needed after newly elected President Joe Biden was installed in January, Oxford Economics’ Gregory Daco noted on December 21.
“The reality of an alarming health situation, a softening labor market and a weakening of demand when Biden joins next month will provoke calls for further fiscal stimulus,” he noted.
Focuses on state and local support
The latest deal is based on a $ 908 billion proposal from a bipartisan coalition of senators. But because that package contained $ 160 billion in aid to fightas many Republicans protested, as well as a shield of responsibility for corporations that many Democrats opposed, the group divided the bill into two bills – essentially carving out the controversial issues in a smaller, separate package that could be discussed at another time.
Holding back $ 160 billion in funding to state and local governments was the key to finding support for yet another round of stimulus payments, according to analysts at Raymond James. The $ 600 per person checks will cost about $ 166 billion, according to the summary released by lawmakers.
Unemployment benefits: $ 300 per week
The $ 900 billion measure will help millions of unemployed workers by adding 11 weeks to the unemployment programs now set to expire at the end of December. Pandemic Unemployment Compensation (PUC), which had provided $ 600 a week to unemployed workers until it expired in July, will be renewed with weekly benefits of $ 300.
The plan also extends a federal moratorium on postponement by an additional month until the end of January.
But some experts said the measure may not go far enough to get unemployed workers over before vaccines are widely available, which is likely to happen by mid-2021.
“This short duration and limited support means the stimulus bill will not give unemployed workers a pillow until a point closer to when the vaccine can roll out and people can return to their closed profession,” said Andrew Stettner, an expert. on unemployment with the left-leaning Century Foundation, said in an email statement on December 21st.
At the end of November, several consumers said they felt an economic impact from the COVID-19 crisis, reaching almost 6 out of 10 people and representing the second monthly increase in congestion in a row, according to for a study by TransUnion. Job growth around the US as well raises concerns the economic recovery is losing steam.
Some consumers, meanwhile, say they need far more than yet another $ 600 one-time payment to help them survive until the coronavirus vaccine becomes more widespread next year.
“Our [COVID-19] the numbers are bigger than ever and the extent of this pandemic is almost limitless, but the help is not, “restaurant owner Stephanie Bonin told CBS MoneyWatch before the deal was signed. She has a Change.org petition calls on Congress to give people $ 2,000 a month, which has received nearly 2 million signatures.
She added: “None of that is enough – whether it’s $ 600 or a one-time check for $ 1,200 – none of that is enough to meet the need out there.”
Meanwhile, millions of American families are struggling to pay their bills and layoffs. Among consumers affected by the pandemic, about 8 in 10 are concerned about their ability to pay their bills – with half saying they are worried about being able to afford their rent or mortgage, according to the TransUnion survey.
Many unemployed workers are already struggling after extra unemployment benefits were cut from $ 600 a week to zero in August, the Century Foundations Stettner noted.
“The savings for unemployed workers have been largely or completely depleted since then, and the limited support in this package is unlikely enough for them to rebuild,” Stettner said. “Congress has given itself no choice but to immediately embark on the next economic stimulus package as soon as the newly elected President Biden takes office.”