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Next stimulus package: This is what President-elect Joe Biden might do if there’s no new bill

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Biden will not be sworn into workplace till January, however he says he’ll be prepared on Day 1.


Sarah Tew/PJDM

This story is part of Elections 2020, PJDM’s coverage of the voting in November and its aftermath.

COVID-19 instances proceed to spike throughout the nation, surpassing greater than 11 million, according to Johns Hopkins University. Drug firm Moderna introduced Monday its vaccine is 94.5% effective towards the virus in early outcomes, whereas states and cities are contemplating instituting lockdowns to assist gradual the unfold. 

In the meantime, the ultimate string of financial protections will run out by the top of 2020 and will not be renewed until serious negotiations pick up and one other stimulus package passes before Dec. 31. The White Home seems to have backed away from its $1.9 trillion pre-election proposal. The highest-ranking Democratic and Republican lawmakers — Home Speaker Nancy Pelosi and Senate Majority Chief Mitch McConnell, respectively, have reportedly not spoken in regards to the stimulus, but prime leaders throughout the spectrum have been calling for extra assist — together with President-elect Joe Biden and President Donald Trump.

On Saturday, Trump tweeted assist for a new stimulus bill that’s both large and focused, a seeming contradiction. With Republicans and Democrats at odds (the Home of Representatives returns to Washington on Monday), the timing of a brand new stimulus invoice earlier than Biden’s inauguration on Jan. 20 remains to be up within the air.

Regardless of the uncertainty, Biden has laid out a plan to handle the results of the coronavirus pandemic on the US financial system, beginning with a COVID-19 task force and a brand new set of strategies that complement a similar plan Biden released throughout his presidential marketing campaign.

“One of many pressing issues that must be executed is individuals want reduction proper now,” Biden stated Nov. 10, Business Insider reported, stressing that his plans will not take impact till his swearing-in. 

Beneath, we study all the things Biden could also be planning, whether or not new stimulus assist passes earlier than the top of 2020.

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Subsequent stimulus checks: What to anticipate



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A second spherical of stimulus checks

The CARES Act, handed in March, was the primary stimulus bundle meant to assist individuals financially affected by the pandemic. One of the crucial in style elements of the act was a stimulus check of up to $1,200 despatched out to greater than 160 million People. That direct assist triggered a bounce in household spending, helped millions at risk of slipping into poverty and allowed others to save

Biden’s plan, just like the one Trump has backed, will embody more direct stimulus payments, however it would not specify what number of or for a way a lot, or if any of the qualifications would change. Democrats and Republicans are at the moment negotiating for more stimulus relief that would come with another round of direct payments, however the clock is ticking to get a invoice handed.

Learn extraYou don’t have to be a US citizen living in America to get a stimulus check

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Stimulus checks are only the start.


Angela Lang/PJDM

A lift to unemployment advantages 

COVID-19 lockdowns throughout cities led to an unprecedented spike in unemployment, with greater than 20 million people having lost their jobs again in Might. To assist these unemployed abruptly, the CARES Act offered a weekly bonus fee of $600 on prime of unemployment advantages offered by the states. These additional funds expired at the end of July, and Trump restarted a smaller model of the bonus in August via an executive memo. This momentary reduction offered $300 extra for six weeks and has since been exhausted; solely a brand new stimulus bundle would supply extra funds. (This is every benefit that dries up if the stimulus isn’t renewed.)

Biden’s plan would not go into specifics about how a lot funding could also be accessible. It does say a invoice would enhance unemployment advantages. 

Extra Social Safety cash per 30 days

There have been no measures to spice up Social Safety within the CARES Act or in different reduction packages since then. Biden’s stimulus plan requires a further $200 to be added to the month-to-month funds that go to Social Safety recipients. 

Forgiveness of scholar mortgage debt

Included within the CARES Act was a forbearance for scholar loans. People who owed cash would not must make funds or see any curiosity accrue till “the top of September,” based on Biden’s stimulus imaginative and prescient. If applied sooner or later, there would, after all, be a special cutoff date.

Again in August, Trump extended the forbearance until the end of 2020. Biden’s plan goes a special course by providing a mortgage forgiveness of a $10,000 minimal. Sen. Elizabeth Warren of Massachusetts, a Democrat and former presidential candidate, outlined a plan to forgive the federal student loan debt again in September.

Different measures

Biden’s plan would additionally embody:

  • Extra money for small companies
  • Emergency sick go away for everybody who wants it
  • Fiscal reduction for states
  • No out-of-pocket cash for COVID-19 testing, therapy and an eventual vaccine

For extra info on the stimulus bundle state of affairs, learn how to calculate your stimulus money, why you would possibly receive an EIP card instead of a check and all the explanations your next check could be bigger.



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Author

Oscar Gonzalez