NEW STIMULUS MAY HAVE MORE THINGS
New stimulus may have more things. Whether or not Congress approves another round of stimulus checks with its next economic rescue bill–and it’s certainly looking like lawmakers will send out new direct payments–the new coronavirus aid act may offer additional benefits that could help you weather the current financial crisis. And we don’t just mean another check. While members of Congress hammer out the details of the bill with White House advisors, lawmakers have floated several proposals that could make their way into the law and ultimately help you. If the Senate has its way, the next coronavirus economic rescue bill could be called CARES Act 2. New enhanced unemployment benefits for jobless Americans. An additional check, that is being hammered out, for people who applied for unemployment for the first time or were already collecting unemployment. The program was initially granted by the CARES Act and expires by July 26, but lawmakers are looking into another unemployment boos now. New stimulus may have more things.
Why we think it may happen: Republicans think $600 a week to too generous. “We’re not going to pay people more money to stay home than work.” U.S. treasury Secretary Steven Mnuchin said. But with new unemployment claims exceeding one million each week for more than four months, and 31.8 million people in total claiming benefits this month, the White House and Senate are planning to extend the benefit. The Senate proposal for extending the benefits “Will be based on approximately 70% wage replacement”, Mnuchin said. An extra weekly payment on top of the ordinary unemployment benefit gives individuals and families a leg up, and cutting it off or reducing it could be devastating for both unemployed workers and the economy.
“Each dollar of unemployment insurance boosts economy-wide spending by $2”, said Lily Roberts director of economic mobility at the Center for American Progress. The Payroll Protection Program is also being looked at, and most likely will be extended beyond what was originally intended in the original CARES Act.