On December 1, a bipartisan group of Congressional lawmakers announced onethat would extend for four additional months. Senate majority leader Mitch McConnell quickly dismissed the plan the same day, saying he would not foster it and instead proposed a “targeted aid package” that included far less aid for unemployed workers, but by December 3 he had talk about compromise.
A group of senators led by Senate minority leader Chuck Schumer proposed their own bill, the American Worker Holiday Relief Act, which extends increased unemployment benefits until October 2021.
The Democrats view the $ 908 billion bipartisan bill as the first step toward economic recovery – it is backed by Schumer, House Speaker Nancy Pelosi and President-elect Joe Biden.
“That would be a good start. It’s not enough,” Biden told CNN on Thursday. “What is immediately needed is shelter for people at their unemployment checks, shelter for people who will receive themafter Christmas because they can no longer pay the rent, easing mortgage payments. Help with all the things in it . “
Without this stimulus aid, the following programs will disappear on January 1, 2021.
$ 300 additional weekly unemployment check
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, President Donald Trump signed an executive memo that paved the way for a smaller $ 300 weekly bonus (for a six-week period) with the expectation that Congress would soon approve another aid package. That did not happen, 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.
More months of unemployment benefits
Individual states handle unemployment insurance claims and determine whether a person is eligible, 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.
Money for freelancers, contractors and handymen
Another initiative of the CARES Act, the Pandemic Unemployment Assistance Program, also known as, provided 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.
Eviction protection for tenants
Theprovided limited 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, who called for an end . This agency order covered more households, including tenants in 43 million households, but it also has a December 31st expiration date.
Student loan deferment
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 Jan. 1, borrower servicers may again charge interest on these loans and students may have to pay off again unless the servicers offer deferral options.
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