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We are finally starting to get concrete details on what the Senate Republicans are planning on doing with the next stimulus package.
Here’s what we already know.
First, we already know that stimulus checks are believed to be contained in the next proposal. The amount of the checks will likely be the same that we saw last round with individuals under a certain income (~75K) receiving $1,200. We still don’t know 100% for sure that these checks will be going out at this rate but it seems highly likely.
Republicans also are going away from allowing further suspensions of student loan payments. Right now, many people can avoid payments and interest on their student loans but that might be going away soon.
The biggest news that we just found out is that the Republicans are finalizing a bill that would include smaller federal unemployment aid.
The $600 boost in unemployment benefits that millions of Americans have been receiving is set to expire this week.
Republicans are getting ready to introduce new unemployment benefits but it does not look like they will be the same.
For a couple of months now there has been a concern that the unemployment benefits offered were simply too high. A lot of people have actually made more money on unemployment than they would have by going back to work and that has caused issues.
White House economic adviser Larry Kudlow stated, “We have had a flood of inquiries and phone calls and complaints that small stores and businesses and restaurants can’t hire people back.”
“They went too far… Maybe last March, it was necessary for that, but really the consequences of people not returning to work… we want to pay folks to go back to work.”
White House chief of staff Mark Meadows said that “the original benefits will not” be in the new bill and that “the original unemployment benefits actually paid people to stay home.”
Reportedly, this new proposal will offer unemployment benefits to replace laid-off workers wages up to a certain amount such a 70%.
Not everybody is on board with this new proposal that seems to be coming around.
House Speaker Nancy Pelosi is one of those people:
“Let me just say: the reason we had $600 was its simplicity… Why don’t we just keep it simple? Unemployment benefits and the enhancement… is so essential right now.”
Other Democrats are on board for extending the benefits.
Senate Minority Leader Chuck Schumer stated Democrats are against plans to limit unemployment benefits.
“We are for extending it … we should not give a 30% pay cut to those who lost their jobs through no fault of their own,” Schumer said.
“The unemployment insurance has kept millions out of poverty, prevented the recession from becoming a depression, we need to extend it.”
So it is looking like stimulus checks will be less of a hot button issue when the negotiations really begin to take place next week. Instead, one of the biggest points of contention will likely be how to handle expanded unemployment benefits.
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Daniel Gillaspia is the Founder of UponArriving.com and creator of the credit card app, WalletFlo. He is a former attorney turned full-time credit card rewards/travel expert and has earned and redeemed millions of miles to travel the globe. Since 2014, his content has been featured in major publications such as National Geographic, Smithsonian Magazine, Forbes, CNBC, US News, and Business Insider. Find his full bio here.