President Donald Trump added more aid in August when he signedafter the CARES Act provisions were exhausted, and these final programs will expire on December 31. Leading economists agree that more help is needed.
“We will have a stronger recovery if we can at least get a little more fiscal support,” said Jerome Powell, chairman of the Federal Reserve, on Nov. 5, acknowledging that Congress has the power to approve stimulus funding.
However, lawmakers have competing approaches, and compromises were slow to come, if at all. Republicans, led by Senate majority leader Mitch McConnell, want a smaller bill with no stimulus aid for Americans, while Congressional Democrats, led by house speaker Nancy Pelosi, prefer a package with more programs, more funding, and a second stimulus payment.
These key programs will expire at the end of 2020 without further funding.
The Extension of Federal Unemployment Benefits
Individual states handle unemployment insurance claims and determine whether a person qualifies, how much they receive, and for how long they can collect. While it varies from state to state, the. Beginning January 1, those additional 13 weeks provided by the federal government are over.
Some states have already filled the void themselves, including extending their disbursement period to 59 weeks, according to the Center for Budget and Policy Priorities. Others, including Alabama, Arkansas, and Utah, have taken no action against it, which could leave unemployed workers in those states unaided when the new year begins.
The Pandemic Unemployment Assistance Program for those who are not normally eligible
Another initiative of the CARES Act, the Pandemic Unemployment Assistance Program, also known as, offered economic relief to those who would not normally qualify for unemployment: the self-employed, contractors and handymen. The PUA ends on December 31. If the federal government doesn’t renew it, it’s up to the states to determine whether to step in on January 1.
The extra $ 300 extra unemployment check per week
Average weekly unemployment benefit does not always equal an employee’s income and typically ranges between $ 300 and $ 600. To help fill the gap, theadded one . When that bonus expired on July 31, Trump signed an executive memo paving the way for a smaller weekly bonus of $ 300 (for a six-week period), with the expectation that Congress would soon approve another aid package. That hasn’t happened, and most states have used up the six weeks of additional funding. The $ 300 bonus will end on December 27, according to the president’s memo, and is expected to go unused.
Eviction moratorium to protect tenants and homeowners
Thelimited protection in evictions by focusing only on homes with a federal mortgage loan or households that received some form of federal funding. The by the Centers for Disease Control, calling for an end to evictions for non-payment of rent. This agency order covered more households, including tenants in 43 million households, but it also has a December 31st expiration date.
Federal Student Loan Deferral
Students who pay off federal student loans were also given a reprieve under the, allowing them to defer their loan payments (and halt interest accrual) until the end of September 2020. In August . On January 1, borrower servicers may again charge interest on these loans and students may have to pay them back unless the servicers offer deferment options.
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