December 5, 2020
President-elect Joe Biden has a stimulus plan for the US. Here's what's in it

Biden’s stimulus plan: Here’s what’s in it, including a second check, unemployment benefits


028-cash-stimulus-empty-wallet-economic-crisis-dollar-bill-currency-2020

Biden won’t be sworn into office until Jan. 20, but he says he’ll be ready on Day 1.


Sarah Tew/CNET

This story is part of Elections 2020, CNET’s coverage of the run-up to voting in November.

Joe Biden won the presidential election, and on Monday, he announced his COVID-19 task force to take on the pandemic. This came after Pfizer said its vaccine offers 90% protections with no safety concerns. To tackle the current state of the US economy, President-elect Biden developed the Emergency Action Plan to Save the Economy, a document that provides insight on the direction he may lean once he takes office.

“Dealing with the coronavirus pandemic is one of the most important battles our administration will face, and I will be informed by science and by experts,” Biden said Monday as part of a statement on the transition to the new term.

On Sunday, the US reported an average of more than 100,000 new COVID-19 cases over the last week, The Washington Post reported, with over 1,000 deaths related to the coronavirus on five out of the past seven days.

Biden is also expected to share more details of his coronavirus response plan this week, including more stimulus aid for Americans. Negotiations on the eventual bill between Democrats and Republicans will be likely, though they may not be smooth. In fact, the route to passing another stimulus package before and after the inauguration is projected to be rocky, contentious and extremely partisan.

Biden’s initial plan — which we sum up below — pulls some elements from the CARES Act, such as stimulus payments for eligible Americans and more unemployment benefits, while also suggesting new measures to provide additional financial help. Here’s what’s in it.


Now playing:
Watch this:

Next stimulus checks: What to expect



3:03

Biden would send a second round of stimulus checks

The CARES Act, passed in March, was the first stimulus package intended to help people financially affected by the pandemic. One of the most popular aspects of the act was a stimulus check of up to $1,200 sent out to more than 160 million Americans. That direct aid caused a jump in household spending, helped millions at risk of slipping into poverty and allowed others to save

Biden’s plan, like the one President Donald Trump is backing, will include more direct stimulus payments, but it doesn’t specify how many or for how much, or if any of the qualifications would change. Democrats and Republicans are currently negotiating for more stimulus relief that would include another round of direct payments, but the clock is ticking to get a bill passed.

Read moreYou don’t have to be a US citizen living in America to get a stimulus check

money-dollar-bill-cash-finance-stimulus-covid-9719

Stimulus checks are just the beginning.


Angela Lang/CNET

A boost to unemployment benefits

COVID-19 lockdowns across cities led to an unprecedented spike in unemployment, with more than 20 million people having lost their jobs back in May. To help those unemployed suddenly, the CARES Act provided a weekly bonus payment of $600 on top of unemployment benefits provided by the states. These extra funds expired at the end of July, and Trump restarted a smaller version of the bonus in August via an executive memo. This temporary relief provided $300 extra for six weeks and has since been exhausted; only a new stimulus package would provide more funds. (Here’s every benefit that dries up if the stimulus isn’t renewed.)

Biden’s plan doesn’t go into specifics about how much funding may be available. It does say a bill would boost unemployment benefits. 

More money for monthly Social Security checks

There were no measures to boost Social Security in the CARES Act or in other relief packages since then. Biden’s stimulus plan calls for an additional $200 to be added to the monthly payments that go to Social Security recipients. 

Forgiving student loan debt

Included in the CARES Act was a forbearance for student loans. Individuals who owed money wouldn’t need to make payments or see any interest accrue until “the end of September,” according to Biden’s stimulus vision. If implemented in the future, there would, of course, be a different cutoff date.

Back in August, Trump extended the forbearance until the end of 2020. Biden’s plan goes a different direction by offering a loan forgiveness of a $10,000 minimum. Sen. Elizabeth Warren of Massachusetts, a Democrat and former presidential candidate, outlined a plan to forgive the federal student loan debt back in September.

Other measures included in Biden’s plan

Biden’s plan also includes additional relief, including:

  • More money for small businesses
  • Emergency sick leave for everyone who needs it
  • Fiscal relief for states
  • No out-of-pocket money for COVID-19 testing, treatment and an eventual vaccine

For more information on the stimulus package situation, read how to calculate your stimulus money, why you might receive an EIP card instead of a check and all the reasons your next check could be bigger.



Source link

One thought on “Biden’s stimulus plan: Here’s what’s in it, including a second check, unemployment benefits

Leave a Reply

Your email address will not be published. Required fields are marked *