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Late last night senators passed the new stimulus bill valued at close to $1 trillion meaning that the last step needed is President Trump signing it into law.
The bill first passed the The House of Representatives, which is controlled by Democrats, 359-53. And a couple of hours later it passed the Republican-controlled Senate 92-6.
If President Trump signs the bill into law today, this would mean that stimulus checks will start going out as early as next week. So some of you could even receive stimulus checks before the end of the year.
“The good news is this is a very, very fast way of getting money into the economy . . . people are going to see this money at the beginning of next week,” Steven Mnuchin, the US Treasury Secretary, told CNBC on Monday.
With this bill now passed, the discussion is already beginning for the next stimulus package.
Nancy Pelosi, the Democratic speaker of the House, stated:
“While we have recognised the urgent need for resources to crush the virus so we can open our economy and schools safely, we must also recognise that more needs to be done…
“We advance this bill today as a first step… We have new hope which springs from the vaccine and from the commitment president-elect Biden has to following science.”
It seems that as we move into the new year and as we approach inauguration day, we will start hearing more talk about the next stimulus package and what it might entail.
One just has to wonder how many months it might take to get the next deal done?
After months and months of back-and-forth and a lot of ups and downs, The next stimulus package was just passed by the House!
It is reportedly 5,000 pages!
It is expected to pass the Senate tonight/tomorrow so it will likely be signed into law within the next 24 to 48 hours.
But what items should we expect to see in this nearly $1 trillion package? I’ll break them down below.
The big item that everybody by now is probably aware of is that the new stimulus bill will contain more checks.
The biggest difference with these stimulus checks from the first round that went out last March is that these payments will be capped at $600 per individual. (The $600 cap will apply to children as well.)
The income cut off will be the same that it was back in March with the payment amounts phasing out after $75,000 per year in income for an individual and $150,000 couples.
Unemployment benefits will be extended through mid March and will supply $300 per week.
Paycheck Protection Program
Another major component to this bill is the Paycheck Protection Program. It will see $284 billion put back into this program that will allow small businesses to collect a second round of funding.
The PPP had some major questions about its distribution last round and we saw a lot of misuse so hopefully that doesn’t happen again.
The aid to businesses will also include $20 billion in grants for companies in low income areas.
The eviction moratorium will be extended through January 31 and $25 billion will go into rental assistance which can be applied to past due rent and utility payments.
The proposal will put more than $8 billion into the distribution of the two coronavirus vaccines approved by the FDA which are the Moderna and Pfizer vaccines.
At least $20 billion would be used for testing and contact tracing. Money would also be used to ensure that Americans can get the vaccine free.
Supplemental Nutrition Assistance Program
$13 billion will go to boosting Supplemental Nutrition Assistance Program benefits by 15% and funding food banks, among other programs.
The bill would put $45 billion into transportation, including at least $15 billion for airline payroll assistance, $14 billion for transit systems, and $10 billion for state highways.
$82 billion for education (including more than $54 billion for public K-12 schools and nearly $23 billion for higher education).
Child care assistance.
$10 billion into child care assistance.
Live event venues
This was one of the unexpected benefits to me that I thought was pretty cool. The proposal is going to give $15 billion to live event venues, movie theaters, and cultural museums.
Some of these places have been virtually untouchable for months and they definitely need the aid right now. It will be great to see historic venues stay open along with museums.
$7 billion to increase broadband access.
The one major thing missing from the stimulus package? No student loan deferment.
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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.