This story is developing.
President Donald Trump has signed the stimulus package—with $600 stimulus checks.
Here’s what you need to know.
Trump has signed the new $900 billion stimulus package and averted a federal government shutdown on Tuesday. Before Christmas, Trump indicated that he might not sign the new stimulus package that Congress passed earlier this month in response to the Covid-19 pandemic because, among other reasons, the planned $600 stimulus checks were “ridiculously low.” This led to concern among millions of Americans and members of Congress alike who were hoping for stimulus relief, including second stimulus checks, unemployment insurance and small business loans, among other financial support. Trump tweeted earlier today that there was positive news coming on the Covid relief bill. “Good news on Covid Relief Bill. Information to follow!”
“I will sign the Omnibus and Covid package with a strong message that makes clear to Congress that wasteful items need to be removed,” Trump said in a statement. “I will send back to Congress a redlined version, item by item, accompanied by the formal rescission request to Congress insisting that those funds be removed from the bill. I am signing this bill to restore unemployment benefits, stop evictions, provide rental assistance, add money for PPP, return our airline workers back to work, add substantially more money for vaccine distribution, and much more.”
What This Means For You
By Trump signing this stimulus package, this may impact your wallet in several ways, including:
- Stimulus Checks: The new stimulus package will provide a one-time stimulus check of $600 for each eligible individual based on the same income limitations for the first stimulus check, which is a 2019 income less than $75,000 for each individual and $150,000 for each married or joint filer. Eligible dependents 16 and younger can qualify for $600 stimulus checks, while married and joint filers can get $1,200. Trump advocated for $2,000 stimulus checks, and has previously said he wanted large stimulus checks for the American people. Previously, Secretary of the Treasury Steven Mnuchin said that stimulus checks could be sent within days, although it’s unclear if that schedule still holds and if payments would be delayed until early next year.
- Unemployment Insurance: The new stimulus package includes $300 a week for enhanced unemployment insurance.
- Rental Assistance: The stimulus package includes $25 billion of rental assistance to protect vulnerable Americans who are at risk of losing their home. There is also a one-month extension of the federal eviction moratorium. (This is different than a congressional proposal to cancel rent and mortgages).
- Additional Benefits: The stimulus package also includes funding for the Paycheck Protection Program ($284 billion), education ($82 billion), child care ($10 billion), clean energy and fossil fuels, and vaccine distribution, among other benefits.
- What’s Missing: Student loan relief was dropped from the stimulus package. This include any proposals to cancel student loans. Trump postponed federal student loan payments through January 31, 2021, but that student loan relief will expire then, unless Congress extends through legislation or the president extends through executive action. There is also no Covid-19 liability protection for businesses or any state or local aid, which were favored by Republicans and Democrats, respectively.
MORE FOR YOU
Unemployment Insurance: Impact
By signing the stimulus bill today rather than yesterday, millions of Americans will get $300 less in unemployment benefits. Why? The stimulus bill provides for 11 weeks of enhanced federal unemployment benefits through March 14, 2021. Benefit weeks begin on a Sunday, so since Trump signed the stimulus bill today, states cannot start unemployment benefits until next Sunday, January 3, 2021. That means unemployment insurance will lapse for one week, leaving millions of unemployed Americans without essential financial support. However, despite the delay, unemployment benefits would still end on March 14, 2021, which means recipients would lose $300 in benefits and only receive 10 weeks of unemployment benefits. That would limit the amount of total unemployment insurance to $3,000, rather than the anticipated $3,300 for each individual recipient.