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Now that we have heard some official details regarding the stimulus proposal from Republicans, known as the Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act, we have a better grasp of what to expect in the next few weeks as negotiations are finalized.
Here’s a rundown of things to look out for.
After months of closely monitoring the debates and hearing an array of opinions and comments, we finally know that stimulus checks will be going out for a second round and that the eligibility should be roughly similar to the first round.
If you are under the $75,000 income cap for individuals you will receive the full $1,200 and if you are under the $150,000 income cap for families, you will receive the full $2,400.
The biggest difference is that there is not an age cut off for dependents in the GOP proposal.
We will have to see if any other expanded eligibility requirements are included once the Democrats offer a counter proposal.
The rate of people unable to pay the rent is still extremely high and is at over 30%. Therefore, it is pretty clear that millions of people will be in need of rent assistance.
The Heroes Act included a $100 billion emergency rental assistance program that would have provided aid to those who are having trouble paying rent as well as those who expect to receive payments from their tenants .
Currently, we have not seen details regarding additional rental assistance although we have heard that it was planned to be included.
The payroll tax cut
President Donald Trump has been heavily pushing the idea of including a payroll tax cut or deferral.
For weeks this seemed like one of the most important elements of the next stimulus package but there are no signs that it is going to happen and it seems like the president may have already given up on the plan.
Student loan benefits
Currently, there is a deferment on student loan payments through September 2020 for federal loans. Democrats would like to extend this deferment period in which interest does not accrue.
However, the GOP only wants to defer payments if you do not have income and if you do you have income then they want to limit your loan repayments to 10% of your discretionary income.
The current proposal from Republicans cut back on the additional unemployment benefits that have been provided during the coronavirus pandemic.
The new proposal would provide around 70% of lost income and would help provide aid beginning at around $200 per week and over time increasing to $500 a week.
It’s still possible that they could include a $450 per week bonus for getting back to work but we have not heard official details about that at this point.
Reportedly, the goal is to finalize the stimulus package before the end of this month and to have things in motion for benefits like the stimulus checks very soon.
The thing is, there is still a great discrepancy in the proposed budgets for these plans. The Heroes Act had an estimated cost of $3 trillion while this proposal is around $1 trillion.
So presumably some big concessions are going to have to be made and maybe we will see the package end up somewhere in the middle around $2 trillion.
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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.