This article has been updated to reflect additional suggestions for stimulus checks.
That CARES Act provided a lifeline for individuals and small businesses. But it’s clear many people are still grappling with the extended economic shutdown.
To recap, the CARES Act provided for a one-time incentive payment of $1,200 ($2,400 for married couples). plus $600 per week unemployment benefit for up to 13 weeksa small business loan program and other financial facilities.
However, members of Congress are aware that many people are still struggling and may need additional financial assistance. Five major stimulus proposals are currently in the works that would provide continued financial support. A sixth, the HERO lawwould provide another one-off stimulus check.
- That Emergency money for the People’s Law would provide a monthly stimulus check of $2,000 for up to a year.
- That Automatic Boost to Communities (ABC) Law would provide a monthly stimulus check of $2,000 for at least 12 months during the payment period, with an additional monthly payment of $1,000 for the following 12 months.
- That Monthly Economic Crisis Assistance Act would provide a monthly stimulus check of $2,000 for at least six months.
- That Rent and Mortgage Foreclosure Act would cancel rent and mortgage payments for up to a year.
- That America Return to Work Act would provide a payroll tax rebate covering 80 percent of wage costs, making it easier for companies to hire and retain employees.
These proposals would bring welcome financial relief to many people, but would come at a massive cost. We estimated that a monthly stimulus check costs $2,000 could cost anywhere from $3 trillion to $10 trillion.
The sticker shock and competing priorities can make it unlikely that these stimulus packages will be passed.
Let’s take a closer look at each of these suggestions.
Emergency money for the people law – $2,000 monthly stimulus check for up to one year
That Emergency money for the People’s Lawpresented by Representatives Ro Khanna (D-CA) and Tim Ryan (D-OH), would provide a monthly stimulus check of $2,000 ($4,000 for married couples) for up to 12 months.
Contrary to the CARES Act, all citizens age 16 and older would receive the full payment provided they earn less than $130,000 per year ($260,000 for married couples).
Those who are claimed as dependent on someone else’s tax return would also be eligible to receive the stimulus payment each month. The CARES Act prohibited stimulus payments to individuals who could be claimed as dependent on someone else’s tax return, effectively eliminating many high school and college-age taxpayers and adult family members from filing taxes Eligibility for $1,200 stimulus checks.
The Emergency Money for the People Act proposal also provides an additional $500 per child, up to a maximum of three children.
$2,000 Monthly Stimulus Check Eligibility:
- Americans 16 and older earn less than $130,000 a year.
- Married couples earning less than $260,000 would receive $4,000 a month.
- Eligible families would receive an additional $500 per child — for up to three children.
- Eligible are people who are unemployed or have no income.
- Eligibility would be extended to recently unemployed individuals who would not qualify for 2018 or 2019 tax returns but whose income situation has changed in 2020.
Finally, the Emergency Money for the People Act would make it easier for citizens to receive the stimulus payments by allowing individuals to receive their payments via direct deposit, check, prepaid debit card, or mobile money platforms like Venmo. cellor PayPal.
You can learn more there Overview of the emergency money for the People’s Law.
ABC Act – $2,000 monthly payments for at least 12 months plus $1,000 monthly payments for 12 months thereafter
The ABC Act would provide $2,000 a month to all eligible individuals and their dependents. Eligible persons are US citizens, residents and nonresident aliens who have been in the US for more than 3 months beginning December 13, 2019.
The $2,000 monthly payment deadline would be at least a year after the end of the COVID-19 emergency and could be longer depending on the unemployment rate. This bill provides for a monthly payment of $1,000 to all eligible recipients for one year after the payment deadline.
Unlike the other stimulus proposals, there are no income restrictions for eligibility.
You can learn more there Overview of the Automatic Boost to Communities (ABC) Act.
The Monthly Economic Crisis Support Act – $2,000 per month for individuals and up to 3 dependents
The Monthly Economic Crisis Support Act would provide a monthly stimulus payment of $2,000 for individuals and up to three dependents.
Payments would be retroactive to March 1, 2020 and would continue three months after the end of the COVID-19 emergency.
Eligible recipients include nonresident aliens, persons who can be claimed as dependents, and persons whose income exceeds the following limits:
- $100,000 for individuals
- $150,000 for the householder
- $200,000 for joint filing of spouses
Payments are subject to a phasing rule that reduces payments by 10% of the amount that exceeds the above income limits (up to a $0 stop).
These payments would not be subject to garnishment or withholding.
You can learn more there Monthly overview of the Economic Crisis Assistance Act.
No rent or mortgage payments for up to a year
That Rent and Mortgage Foreclosure Act, introduced by MP Ilhan Omar (D-MN), would remove rent or mortgage payments on a person’s main residence for up to a year. The bill would ban double-dipping by not allowing individuals to receive more than one loan per household.
The invoice would include:
- Pay full rent or waive mortgage payment for your primary residence
- No debt accumulation for tenants or homeowners
- No negative marks for your credit history.
How would landlords and lienholders be paid?
The bill would establish the Rental Property Relief Fund and the Home Lenders Relief Fund, both administered by the Department of Housing and Urban Development. This fund would pay landlords and mortgage holders to cover losses associated with renters and homeowners not making their rent or mortgage payments.
Landlords and lenders would have to follow federal guidelines on fair lending and renting practices for five years to be eligible for funds under the Rent and Mortgage Foreclosure Act.
The bill would also create an optional fund to finance the purchase of private rental properties to increase the availability of affordable housing.
You can learn more there Rental and termination law at a glance.
Payroll tax rebates to encourage hiring and retention
The Getting America Back to Work Act proposed by Senator Josh Hawley (R-MO) would create a refundable payroll tax rebate that would cover up to 80% of employer payroll costs up to the median wage. It would also introduce a reinstatement bonus for employees who were laid off and later reinstated.
The program would be administered directly by the federal government and would last for the duration of the public health emergency.
While the tax refunds aren’t a “stimulus check” in every American’s pocket, this plan would allow employees to remain on the payroll and be eligible for other benefits, reducing the downtime businesses need to keep operating resume once the economy picks up again.
The Getting America Back to Work Act would also reduce the overburdened jobless system, which is currently overwhelmed in many states, some of which have yet to process tens of thousands of jobless claims.
Will any of these stimulus proposals pass?
That’s the big question. There is a lot of financial need and some additional stimulus legislation is likely to be passed this year. However, the form of the economic stimulus package should be determined.
The sticker shock for those bills, which would call for a $2,000 monthly stimulus payment, might be too much to bear. At $2.2 trillion, the CARES Act is the largest stimulus package in US history. The cheapest of the $2,000 monthly stimulus check proposal is valued at over $3 trillion. The most expensive of these could cost more than $10 trillion.
US President Trump has also indicated this The next stimulus law must include a payroll tax cut.
While another stimulus bill may be passed, it will likely be modified by any of the proposals shown here.