After various struggles that delayed the the unveiling of the much anticipated second coronavirus relief package, Senate Republicans are slated to release the details later this afternoon. However, on Sunday, Trump administration officials provided a glimpse into the stimulus, and revealed that there will be another round of stimulus checks, as well as additional unemployment benefits- except at a much reduced amount.
Back in March when the CARES Act was first put into motion, Americans that made under $75,000 per year were eligible for the $1,200 one-time payment as a means of offsetting their income shortcomings due to the coronavirus pandemic. Now in light of the continued rise in infections with hopes of a successful vaccine still many trials away, the US government has had no choice but to issue a second coronavirus relief bill, which will include another payment of $1,200 to struggling Americans.
The second bill will also include an employment benefit top-up, but it will no longer be the controversial $600 that has allegedly incentivized Americans to sit at home in lieu of returning to work. Now, states will be transitioning to a new system that will cover about 70% of wages for workers that have been laid off, and the top-up will only amount to $200 instead of the $600.
In total the new stimulus bill is expected to amount to approximately $1 trillion, with $105 billion slated for schools, and $16 billion going towards coronavirus testing. In addition, the bill will also boost the Paycheck Protection Program, liability protection for non-profits, schools, and hospitals, as well as various tax incentives for employers in order to retrofit offices in light of the pandemic.
Information for this briefing was found via Forbes and CNN. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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