In just over seven weeks, the last US coronavirus relief programs will expire on December 31, 2020. These are the remains of President Donald Trumpfrom August. Without another stimulus package to renew benefits, these programs are doomed to expire, paving the way for a tangle of financial problems from January 1. Some predict an increase in the number of people filing for personal bankruptcy as a way to .
Leading US lawmakers and economists recognize thatis imperative to help keep tens of millions of people fed, clothed, housed and employed, and to . Former Vice President Joe Biden, who on Saturday became the President-elect of the United States, . However, he will not be able to follow up formally before taking up his official duties on January 20.
“We will have a stronger recovery if we can just get at least additional budget support,” Federal Reserve Chairman Jerome Powell said Nov. 5, acknowledging that Congress has the power to approve stimulus funding. It turns out that members of Congress have competing approaches.
The size ofare hotly contested according to the parties. Congressional Democrats, led by House Speaker Nancy Pelosi, prefer a larger package with more agendas. Republicans, led by Senate Majority Leader Mitch McConnell, want a smaller bill with less funding. It is not clear whether a future Senate proposal would include or more unemployment assistance.
Walkingauthorized on and the , who have collectively provided aid to the hundreds of millions of Americans who when the pandemic struck. Here are the key programs that must end.
13 additional weeks of unemployment benefits
Individual states process unemployment insurance claims, determining if a person is eligible, how much they receive, and for how long they can collect. Although it varies from state to state, the. As of January 1, those additional 13 weeks provided by the federal government are gone.
Some states have already filled the void on their own, including increasing their benefit period to 59 weeks, according to the Center on Budget and Policy Priorities. Others, including Alabama, Arkansas and Utah, have not taken action on this, which could leave the unemployed in those states without assistance at the start of the new year.
Unemployment pandemic assistance program
Another initiative of the CARES Act, the Unemployment Pandemic Assistance Program, also known as, provided economic relief to those who would generally not qualify for unemployment: the self-employed, contractors and construction workers. The PUA is scheduled to end on December 31. If the federal government does not extend it, it will be up to the states to determine whether they will intervene on January 1.
Unemployment benefit of $ 300 per week
The average weekly unemployment benefit does not always match a worker’s earnings and typically ranges between $ 300 and $ 600. To help fill the void, theadded a . When that bonus expired on July 31, Trump signed a memo paving the way for a weekly bonus of $ 300 (for a period of six weeks) with the hope that Congress would soon adopt another relief package. This did not happen and most states have used up the six weeks of additional funding. The $ 300 bonus provision is expected to end on Dec. 27, according to the president’s note, and should cease to be unused.
Protection against eviction in the event of non-payment of rent
theprovided limited protection over evictions by focusing only on homes with a federal mortgage or households that received some type of federal funding. the by the Centers for Disease Control, which called for an end to evictions for non-payment of rent. The agency’s order covered more households, including tenants for 43 million households, but it also has an expiration date of December 31.
Deferral of student loans
Students who repay federal student loans have also received a stay under the, which gave them the opportunity to defer their loan repayments (and which suspended the accumulation of interest) until the end of September 2020. In August, . On January 1, loan managers will be able to charge interest on these loans again and students may have to start repaying them again unless managers offer deferral options.
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