$1.9 Trillion Coronavirus Rescue Package Includes $1,400 Stimulus Check and More
While many American have just received their $600 check or are still waiting to get them, there’s already a proposal that could deliver a third and largest payment so far. President-elect Joe Biden on Thursday unveiled the details of a $1.9 trillion coronavirus rescue package, called the American Rescue Plan, that includes direct payments and enhanced unemployment benefits.
This is the first of two major spending initiatives Biden will reportedly seek in the first few months of his presidency, CNBC reports. The second bill, expected in February, will tackle more long-term goals of creating jobs, infrastructure, climate change etc..
American Rescue Plan
Here’s what is included in the latest $1.9 trillion coronavirus rescue package:
- Direct payments of $1,400 to most Americans, bringing the total relief to $2,000, including December’s $600 payments. It is not clear what income limits, if any, will be in place.
- Increase the federal boost the jobless receive to $400 a week, from the $300 weekly enhancement contained in Congress’ relief package from December. The Pandemic Emergency Unemployment Compensation and Pandemic Unemployment Assistance programs will be extended until September (originally extended to March).
- Increasing the federal minimum wage to $15 per hour
- Extending the eviction and foreclosure moratoriums until the end of September
- $350 billion in state and local government aid
- $170 billion for K-12 schools and institutions of higher education
- $50 billion toward Covid-19 testing
- $20 billion toward a national vaccine program in partnership with states, localities and tribes
- Extend the 15% increase in food stamp benefits through September, instead of having it expire in June.
- Reinstate the paid sick and family leave benefits that expired at the end of December until September 30.
- Making the Child Tax Credit fully refundable for the year and increasing the credit to $3,000 per child ($3,600 for a child under age 6).
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My two cents…… I would venture to say that every item on that list except the minimum wage would be put forth by the Republicans if they held both chambers….. and Biden being President…… that list is mostly a continuation of the efforts of the previous administration and cooperative agreements between the House and Senate. The only tax issue we will see is whether to extend the Trump tax cuts or allow them to expire. Semantics but is it raising taxes if the legislation is set to expire? Assets are certainly overvalued if the economy is as bad as the numbers tell us but that does not relate to inflation. It is a worry that our interest rates have been kept so low for so long that the asset bubble may be to big to fail…… and we will see a huge government bailout of companies if/when the market corrects. That may be the main difference in outgoing / incoming is that the government will now proactively correct and boast about it whereas the previous administration at least in theory would have waited longer and then downplayed the involvement. Fingers crossed but my barber has yet told me he is flipping condos in Miami and Vegas….. when that happens its too late and we already lost our money…….
Refilling the swamp with a fire hose. Oh well, projecting and guessing but also based on economic history, if stocks tank, inflation spikes, and taxes are raised, business and pleasure travel will drop sharply while our point/miles balances may become more useful and valuable.