Next Stimulus Package: All The Benefits You Could Get In Addition To A Second Payment
id="article-body" class="row" section="article-body">
Extended unemployment payments and a second stimulus check are only part of the discussion over the HEALS Act and another stimulus package.
Angela Lang/CNET
Both Republican and Democratic lawmakers are rushing to strike a deal on the [/news/heals-vs-cares-vs-heroes-stimulus-packages-key-differences-between-republican-and-democratic-proposals/ next stimulus package] by [/news/if-congress-reaches-a-stimulus-package-deal-friday-this-is-what-happens-next/ Friday]. A [/news/when-could-your-new-stimulus-check-come-from-the-irs-lets-review-some-possible-dates/ second stimulus payment] of [/news/how-much-stimulus-check-money-would-you-receive-here-are-some-calculations/ up to $1,200] for those who meet the [/news/new-stimulus-check-qualifications-everything-we-know-about-the-requirements-today/ eligibility requirements] will be part of that agreement, but key decision-makers are [ divided along partisan lines] when it comes to recovering an [/news/coronavirus-recession-how-bad-it-could-get-and-what-it-means-for-you/ economy in deep recession].
Making a deal will require compromising on overarching issues such as [/news/extra-600-cares-act-unemployment-benefit-has-ended-what-this-means-for-you/ enhanced weekly unemployment benefits] and [/news/eviction-moratorium-in-august-the-current-update-on-rent-relief-and-landlord-laws/ eviction protections]. On Thursday, first-time unemployment claims surpassed 1 million requests for the 20th straight week. That's up from [ 214,000 new jobless claims a year ago this week], underscoring the toll the [/news/coronavirus-recession-how-bad-it-could-get-and-what-it-means-for-you/ coronavirus pandemic] has already taken.
The final stimulus rescue package is slated to be worth more than just a single check. Here's the entire range of financial aid that might be available through the end of 2020, and which parts of the current proposal are most likely to pass.
CNET Coronavirus Update
Keep track of the coronavirus pandemic.
Second stimulus check: Designed to accelerate spending
What it is: A [/news/stimulus-check-are-you-eligible-to-receive-the-next-1200-what-you-need-to-know/ payment sent to qualifying individuals] and families, based on annual income, age, number of dependents and other factors. The [/news/stimulus-check-income-limit-eligibility-amount-everything-you-should-know-about-the-first-irs-payment/ first stimulus checks] authorized under the [ CARES Act] have gone out to over 160 million Americans -- as a check, as a prepaid credit card or through direct deposit. But there are problems and after three months, [/news/time-to-report-now-follow-these-steps-to-tell-the-irs-stimulus-payment-never-arrived/ some are still waiting for their stimulus payment].
How it could help you: The payment isn't taxable and you can use it however you want -- to pay for food, housing, clothing and sahabisu416.wixsite.com so on. The idea is that spending the checks will help the economy recover faster.
Why we think a second check will pass: The CARES Act authorized payments of up to $1,200 per eligible adult and so does the HEALS Act. The House of Representatives' [ Heroes Act], meanwhile, called for $1,200 stimulus checks, but for more people. The White House supports another round of checks, which makes this a likely part of the final bill.
The HEALS Act proposes to give eligible Americans the same size stimulus check as those issued in March.
James Martin/CNET
Additional unemployment benefits for people without jobs
What it is: An [/news/extra-600-cares-act-unemployment-benefit-ends-july-31-heres-what-to-know/ additional weekly check] for people who applied for unemployment for the first time or were already collecting unemployment. The program initially granted by [ the CARES Act] provided an extra $600 per week and officially [/news/the-first-round-of-coronavirus-benefits-is-over-what-happens-now/ expired on July 31], but lawmakers are looking into another unemployment boost now.
How it could help you: An extra weekly payment on top of the ordinary unemployment benefit gives individuals and families a leg up. Cutting it off or reducing it could be devastating for unemployed workers and the economy.
Why we think it could happen: Republicans support the extension, but at a reduced rate. Democrats support an extension of the current $600 rate and have balked at the Senate proposal, which would extend benefits based on 70% to 75% of lost wages, starting at $200 a week and over time increasing to $500 a week, with state assistance. The benefits expired without a short-term extension in place.
After a political stalemate during negotiations, the GOP negotiators have reportedly signaled a [ willingness to consider the $600 weekly allowance], The New York Times reported on Aug. 4.
Payroll Protection Program to encourage businesses to keep employees
What it is: Intended to help you retain your job, the [ Paycheck Protection Program] provides forgivable loans to small businesses as an incentive to keep employees on the payroll.
How it could help you: The program is designed to fund employed workers who would otherwise have lost their jobs during the pandemic. The program got off to [ a rocky start], and it's not clear the PPP [ met the goals] Congress set for it.
"Overall PPP hasn't preserved many paychecks," [ Joshua Gotbaum], a guest scholar of economic studies at the Brookings Institution, wrote in July. "A careful [ study] found that PPP-eligible small businesses laid people off just as quickly as other businesses," he said.
Why we think it could get extended: The Republican proposal will target the hardest-hit small businesses, Sen. Susan Collins of Maine [ said during the rollout of the bill], including those with revenue losses of 50% or more over last year.
A tax credit would help with your pay.
Angela Lang/CNET
Employee retention tax credit could help pay their workers
What it is: Under the [ program], an employer can receive refundable tax credits for wages paid to an employee during the pandemic. The employer can then use the credits to subtract from -- [ and even receive a refund over] -- taxes they owe.
How it could help you: Again, it's not a direct payment to you, but the program encourages businesses to keep workers on the payroll.
Why we think it could happen: The HEALS Act includes further tax relief for businesses that hire and rehire workers and the Democratic-backed Heroes Act also builds on the tax credits that were part of the initial CARES Act. And there's additional [ bipartisan support] besides.
Coronavirus updates
[/health/should-you-send-your-kids-back-to-school-during-the-coronavirus-pandemic/ Sending your kids back to school: What you should know]
[/how-to/mail-in-voting-versus-absentee-voting-whats-the-difference/ Mail-in voting vs. absentee voting]
[/health/these-are-the-most-risky-activities-during-the-coronavirus-pandemic/ How safe is it to fly? 10 activities that can spread the coronavirus, ranked]
[ ]
Now playing:
Watch this:
Stimulus standoff on Capitol Hill
1:21
Return-to-work payment of as much as $450 per week
What it is: A temporary weekly bonus for unemployed workers who secure a new job or are rehired, on top of their wages. As proposed by [ Sen. Rob Portman], a Republican from Ohio, the bonus would be $450 a week.
How it could help you: [ Under Portman's plan], the weekly bonus would go to laid-off workers who return to work.
Why we think it may not happen: The White House in May [ expressed interest in the bonus] and [ Portman continues to support the idea], but it's not part of the proposal Senate Majority Leader Mitch McConnell and the other Republican senators presented last week.
Rental assistance to help stave off evictions
What it is: This plan would help renters pay rent and assist landlords with expenses with less rent money coming in, especially as the US faces a potential "[/news/covid-rent-relief-what-might-happen-after-july-25-if-you-cant-pay-rent/ tsunami of evictions]."
How it could help you: The rental assistance program would temporarily help you pay rent if you qualify, put a hold on evictions for a year and help cover costs of rental property owners because of rental payment shortfalls. [/news/coronavirus-rent-relief-what-to-know-about-eviction-moratoriums-and-your-aug-1-due-date/ The earlier protections have lapsed].
Why we think it could happen: House Democrats included an eviction moratorium in the Heroes Act. It wasn't part of the Senate proposal, but President Donald Trump on July 29 [ said eviction protections] would be part of the package. As with unemployment insurance, Congress is looking to extend this separately while it works on the final bill.
Payroll tax cuts may not make the cut in the next coronavirus relief bill.
Sarah Tew/CNET
Payroll tax cut to give you more money in the bank this year
What it is: Trump has for months [ pushed the idea of including temporary payroll tax cuts] in the next stimulus package. The proposal could include [ cutting both the employer and employee share of payroll taxes].
How it could help you: If you have a job, a payroll tax cut would let you keep more of your earnings each check. The plan would not help those who are unemployed and don't receive a paycheck. The [ 32 million people] who were claiming unemployment insurance as of July 18 would not benefit. "Workers would still be on the hook to pay those taxes next year," the [ New York Times] reported.
Why we don't think it'll happen: Neither the Heroes Act nor [ the current Senate plan] includes a payroll tax cut. The White House continues [ to push for the idea].
Until we know for sure what the finalized stimulus bill will bring, there are some resources to help you through the financial crisis, including [/news/coronavirus-hardship-loans-what-they-are-how-they-work-and-how-to-get-one/ coronavirus hardship loans] and [/news/coronavirus-unemployment-furlough-payments-applying-more/ unemployment insurance]; [/news/you-lost-your-job-because-of-coronavirus-these-resources-can-help/ what you can do if you've lost your job]; [/news/senate-expected-to-renew-eviction-moratorium-but-rent-is-still-due-aug-1/ what to know about evictions] and [/news/nearly-3-million-people-cant-pay-their-car-loans-heres-what-to-do-if-youre-one-of-them/ late car payments]; how to [/news/how-to-master-your-2020-budget/ take control of your budget]; and [/news/some-people-will-get-two-checks-from-the-irs-in-2020-find-out-if-youre-one-of-them/ if you could receive two refund checks from the IRS].
Julie Snyder contributed to this story.
[#comments Comments]
[/personal-finance/budgeting/ Budgeting]
[/topics/politics/ Politics]
[/personal-finance/ Personal Finance]
[ Notification on Notification off How to]