What happens if the stimulus package is not successful? This is what Biden could do

When it comes to the highly controversial incentive law still under discussion among the country’s top leaders, the best scenario is that, after that eight months of negotiating ping pong, a stimulus package passes in the 18 days before New Year’s Eve. When a deal fails completely before President-elect Joe Biden takes the oath of office on January 20the president-to-be has a number of tools at his disposal to meet some of the country’s most pressing needs.

Although Biden does not have the authority to pass new laws on the federal budget, such as authorization a second stimulus check and greater unemployment controlsin limited circumstances, the incumbent president can use an executive order or memo to establish temporary rules. This is what Biden could do in the worst case scenario, as President Donald Trump did in August, while waiting for Congress to work out a larger package.

(Here’s more on our first glimpse of it Biden’s incentive plan, including possible a second check for $ 1,200. Here is why we think there may be another stimulus check.)

Stick around for what kind of incentive Biden could only bring through executive orders if no incentive bill is passed. To learn more about another round of direct payments, learn how to work it out your place in line for a second stimulus check, How much money it could generate to your specific household, and how qualifications can change in another round. This story was recently updated.

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Biden could temporarily extend extra unemployment benefits

Biden has outlined in its own economic stimulus plan an extension of the weekly unemployment benefit authorized under the CARES Act. Trump signed an injunction in August to extend unemployment benefits beyond July 31, at a lower weekly level. Since the power to spend rests with Congress and not the president, Biden should find a source of funding for the aid, much like Trump did in August when he tapped unused FEMA money for his renewal.

(Treasury Secretary Steven Mnuchin cut off another source of funding for Biden’s possible executive action that was available for the Federal Reserve to use emergency loans when he requested that the Fed return unused funds from the program to the Treasury.)

Increase the minimum wage, starting with federal contractors

During Biden’s campaign, the president-to-be spoke of raising the federal minimum wage to $ 15 an hour, up from the current $ 7.25 an hour. Without Congressional support, Biden will not be able to raise the federal minimum wage, but he could achieve some of it by raising the minimum wage of workers on federal contracts.

According to Heidi Shierholz, senior economist and policy director at the Economic Policy Institute, Biden could achieve the increase through an executive order. The hourly increase could affect the wages of 5 million workers, Shierholz estimated.

Suspend student loan payments without interest

With a deferral for student loan repayments that expire on December 31 along with the last remaining COVID-19 embossed protections, Kon Biden follow the steps Trump took last summer and extend the delay until 2021. This means that students can delay the repayment of loans until further in 2021.

In addition to a short-term fix, Biden could also look into student loan forgiveness, based on a plan he outlined in his emergency action plan to save the economy, in which he suggested canceling a minimum of $ 10,000 for federal student loans.

Stop exposures on unpaid rent

If Congress hasn’t held back the deportations sooner the moratorium Trump has enacted expires Dec. 31, Biden can also use an executive order to prevent landlords from evicting their tenants for not paying rent during the pandemic. Tenants can be evicted for other reasons.

The precedent set by the Trump administration was to invoke a rare law enforced by the Centers for Disease Control aimed at limiting the spread of disease by keeping people at home and out of homeless shelters or setting state boundaries. exceed.

Some of what Biden will be able to accomplish soon will depend on the Georgia Senate run-offs, which could potentially give Democrats a little bit of control over the Senate if both Democratic challengers win.

With the inauguration in less than two months, here’s what we know Biden’s plans to support the economy, five federal distributions due in December unless Congress acts, and what things stand for negotiating another economic bailout law.