The Government Announced they are looking to send checks to Americans immediately. The move is in response to the ever growing coronavirus pandemic. Providing cash directly to Americans is part of a larger stimulus plan. The plan totals $2 trillion dollars. We cover the ever changing details below.
The White House originally floated the idea of a payroll tax, however a payroll tax does not address the immediate need for individuals who have lost their jobs, been furloughed, or are a part of the gig economy. In fact, layoffs are already taking place. Steve Mnuchin, Treasury Secretary has warned lawmakers the US is looking at a 20% unemployment rate in the near future. If you have been laid off, here are some options.
The bill includes sending a one time check of $1,200, based on income. To receive a check you must fall into one of the categories below.
Unemployment Benefits are set to be expanded to 4 months and include more benefits. In addition, the program will be available to gig workers, furloughed employees, and freelancers. The bill also includes a significant boost in payouts.
Emergency loans will be offered through June 30. These federally guaranteed loans will be forgiven if the business continues to pay their workers throughout this crisis.
Much of the disagreement between Republicans and Democrats had to do with the Corporate bailout money set to be included within this particular stimulus plan. Democrats argued that the money should going directly to the hands of Americans. Republicans argued that this influx of money to certain corporations will help keep specific industries afloat.
The final bill does include bailout money for specific industries, such as hotels and airlines. However, companies that benefit from these federal funds will be forbidden from engaging in stock buybacks. Companies are forbidden from stock buybacks while they receive government assistance and for an additional year after that.
The timeline of when the checks would go out is uncertain. The Senate still has to pass the bill and President Trump must sign. However, given the severity of the crisis, the government is hoping to send payments out within 2 weeks.
The White House is very concerned about the economy crashing. The government has to deal with both a health and economic crisis. The Government is hoping direct cash payments will inject some money into the economy. As well as aiding those affected by job loss or reduction in hours.