Editor’s note: We will update this article daily to reflect congressional discussion and negotiations about the next federal stimulus package. Last updated: July 27, 2020
Congress is still working to find common ground on inclusion in the second stimulus package, but progress has been made.
Senate Republicans on Monday released a proposal for their stimulus package: the Aid, Financial Aid, Liability Protection and Schools (HEALS) Act. It will provide another round of direct incentive payments to Americans, expand unemployment benefits, freeze Medicare premiums, provide more paycheck protection program (PPP) funding for businesses facing COVID-19-related lawsuits and liability. Will extend the shield.
In May, the House issued its second stimulus proposal, the Health and Economic Reform Omnibus Emergency Solution (HEROES) Act. Senate Leader Mitch McConnell on Monday rejected the House proposal, calling it a “socialist manifesto”. Congress will negotiate the measures before voting on a bill and potentially send President Donald Trump to sign into law.
When can the second stimulus occur?
While there is no time limit for Congress to pass a second stimulus bill, there is less than two weeks left, until Congress adjourns for a one-month holiday on August 7. 7. Both Democrats and Republicans have stated that there is a sense of readiness to pass the second provocation. Bill before the break.
Treasury Secretary Steven Menuchin and White House Chief of Staff Mark Meadows met with House Speaker Nancy Pelosi on Monday evening to discuss the details of the GOP proposal and closed the negotiations.
The full text of the HEALS Act has not yet been released, and it is unclear whether the GOP proposal will be one large bill or several smaller bills.
Here’s what we know so far.
Another round of Stimulus check
The HEALS Act includes another round of one-time payments, commonly known as incentive checks. It pays the same $ 1,200 that is the same as the CARES Act – what Democrats have said for the HEROES Act – including the same income limit. However, the HEALS Act proposes a $ 500-per-dependent payment for taxpayers with dependents of any age, not just those under the age of 17, which the CARES Act mandates.
The CARES Act provided a lump sum payment of $ 1,200 to individuals who paid $ 75,000 per year, and $ 2,400 to married couples who jointly depended on $ 150,000 per year and an additional $ 500 per qualification. Those whose income exceeded those thresholds fell into the “phase out” range. Single taxpayers with incomes above $ 99,000 and married couples with incomes over $ 198,000 did not receive payment.
There is a face-off about Monday’s Republican stimulus check proposal, which the GOP was discussing earlier. Republicans first called for the next round of payments to target low-income individuals who earn $ 40,000 or less annually.
Weekly unemployment benefits can be reduced
A second stimulus package would likely expand the federal Pandemic Unemployment Compensation (FPUC), which was included in the CARES Act, but the last payment made last weekend. This union-funded unemployment aid provided an additional $ 600 per week on top of state-funded unemployment benefits.
The HEALS Act will provide a $ 200 weekly unemployment supplementary payment through September. Starting in October, this incentive will be replaced with a payout, when combined with state unemployment insurance payments, equal to 70% of a person’s lost wages. This means that starting in October, the payout will be unique based on each person’s past earnings.
This can quickly prove difficult to implement. According to the Association of Memos, the National Association of State Workforce Agencies states that most states will take up to 20 weeks to implement a Republican proposal for salary replacement. The HEALS Act would provide $ 2 billion to states to upgrade their unemployment insurance systems to better prepare for the changes mandated by the bill.
Senate Minority Leader Chuck Schumer on Monday called the GOP’s proposal for a new calculation of unemployment benefits a “nightmare”.
After weeks of debate in Washington, DC, the lowered FPUC arrives, explaining how helpful or worthless unemployment has been for Americans. GOP lawmakers argued for a long time that the boost gives Americans little incentive to return to work, as many were doing the same amount or more on unemployment, with the boost made before losing their jobs Were.
Democrats and prominent economists support the expansion of advanced unemployment benefits, maintaining that it will save the economy and protect working Americans, while cutting it will result in “human and economic devastation”. Democrats have called for a $ 600 weekly federal benefit to be fully expanded.
More Paycheck Conservation Program Grants
More funding will likely be available for the paycheck protection program. The program provides loans to businesses with fewer than 500 employees and is already undergoing two rounds in Congress, with a total contribution of $ 650 billion.
The Republican proposal for PPP funding is included in a piece of legislation entitled the Sustainable Small Business Recovery and Salary Protection Program Act.. The Act will allow small businesses to obtain a second PPP loan if they can demonstrate that they have lost at least 50% of gross revenue, and that the long-term recovery of $ 60 billion targeting low-income communities, the minority Will also create loan program- Ownership and seasonal business.
McConnell said Monday that the GOP’s proposal would include additional funding for schools, with some of that money reserved for schools that would physically reopen. He previously said that $ 105 billion would be allocated for schools, but the number could not be confirmed until Republicans issued the text of the bill.
McConnell said, “This majority is drafting legislation that will send $ 105 billion so that teachers have the necessary resources to safely reopen.” “This is more money than the House Democrats put aside for a similar fund. And that is in addition to support for child care needs.”
Liability Shield for Businesses
In a separate Republican proposal called the Safe to Work Act, businesses and other entities would be protected from lawsuits involving the coronovirus infection. This includes businesses, schools, hospitals, church nonprofits, universities and government agencies. Coronovirus-related liability will cause entities to be molded unless they engage in gross negligence, consciously negligent disregard for the safety of their customers and employees.
Liability protection has been a top priority for Republicans, particularly McConnell.
“[The next stimulus package] During a recent stop in Kentucky, as stated by The Hill, McConnell said, no bill for everyone related to coronavirus should pass without liability protection to the Senate. “One should not face the epidemic heels lawsuits that we already have concerning coronoviruses.”
Medicare Premium Frozen
The HEALS Act COVID-19 frees B premiums and deductibles by preventing them as a result of crisis-related economic conditions. The 2021 Part B monthly premium will remain $ 144.90, the standard premium, for 2021.