Trump’s COVID-19 relief executive activities: Everything happening today.
Here’s what you need to know about President Trump’s executive activities, what they cover, where they fall short, and what’s happened because he signed them.
Can Trump’s new executive orders help you or hurt you?
Trump signed a executive arrangement and also three memoranda on Aug. 8 after negotiations stalled between negotiators on Capitol Hill about the upcoming financial stimulus package (which would incorporate a second stimulus check ).
Trump’s COVID-19 relief executive activities vary from working to impede evictions, expand unemployment benefits and pause payroll taxation, and ultimately provide more help to Americans damaging financially from the ongoing coronavirus pandemic.
Immediately, critics began suggesting that Trump’s orders could fall short in ways that the larger stimulus package could reach, such as supplying a second stimulation test. So what’s happened because Trump signed up the directives and how does this impact your check?
We broke down all four of those directives, such as the openings that could keep them from being effective in any way.
Keep track of the coronavirus pandemic.
What’s happened because Trump signed the executive action?
Talks are still postponed despite ongoing name-calling and finger-pointing that suggests both sides recognize the need for a relief package. The Senate adjourned before Labor Day and the House, after returning to pass laws to give funding for the USPS, so far have gaveled in on a few pro forma sessions. Since discussions are in a deadlock,” White House Chief of Staff Mark Meadows said that the administration is looking at other executive activities, such as for the airline industry. There’s also the possibility of smaller, separate relief packages instead of one large package. Senate Republicans intend to introduce a "skinny" coronavirus stimulus package that could include $10 billion aimed at addressing the US Post Office budget crisis and $300 in yearly unemployment benefits that might be similar to an executive actions signed by Trump. On Saturday, the House passed a bill that banned recent changes to the US Postal Service that could affect up to 80 million individuals ‘s capacity to vote by email during the November presidential election. The bill also provides $25 billion in additional funding for the USPS, which was to be included in the Democrat-authored Heroes Act. It’s not probable that the laws will make it through the Senate.
Not much has changed with Trump’s orders and discussions are still stalled on the stimulus package.
What would the executive action mean for my stimulus check?
Thus far, the response depends on whether Republicans and Democrats in Congress could agree on another coronavirus economic stimulus package that includes a new round of payments for eligible Americans. This is due largely in part to this trouble states might have implementing Trump’s orders generally. (Read on to get a breakdown of those orders.)
Trump’s memorandum on unemployment benefits said the national government would donate $300, and says could donate the remaining $100 to make up the $400 payment invested in the memo (down from the $600 of their CARES Act, which ended July 31). "
On Aug. 11,” Treasury Secretary Steven Mnuchin said the unemployment benefit could start in a "week or two," but as of Tuesday, tests haven’t been sent out.
Here’s a breakdown of all four of Trump’s requests:
$400 unemployment benefit, with a grab.
What it is: After Trump’s memorandum, the national government would donate $300 of the $400 payment invested in the memo (down from the $600 of their CARES Act, that ended July 31). Individual states — currently pinching pennies during the coronavirus outbreak — are responsible for the remaining $100 per individual each week, retroactively starting Aug. 1.
Arizona is the first state to ship the $300 as of Aug. 18.
Again, governors have bristled at base 25% of their bill during a pandemic. In California, Gov. Gavin Newsom said that huge budget cuts would be required to execute Trump’s plan. He estimated that matching 25% for unemployment benefits would cost California approximately $700 million each week.
"It could create a burden the likes which even a state as large as California couldn’t absorb , again, massive cuts to important services," Newsom said during a press conference.
There’s some question about the legality and practicality of some of these orders.
The way the unemployment benefit could be funded: Trump is unilaterally seeking to use leftover or unspent FEMA funds to pay unemployment benefits. Experts predict this season ‘s hurricane season will visit an "extremely active" series of storms. As stated by the National Oceanic and Atmospheric Administration, hurricanes can cost upwards of $22 billion each storm.
Additionally, last week FEMA approved the use of federal funding to help combat the LNU Lightning Complex– the largest of the wildfires in California– trimming in Napa County. As of Monday, wildfires had ravaged over 1.2 million acres of property.
Can there be a legal challenge? This executive actions could be challenged legally because the Constitution provides Congress control over federal spending. Therefore, Trump doesn’t have the legal authority to issue binding executive orders regarding how money ought to be spent during the coronavirus pandemic.
Eviction purchase protections: Discussed, but not renewed.
The language of this only true order out of this four — is complicated optima tax relief reviews Bonuses, but definitive. It doesn’t actually halt evictions. In reality, the Aspen Institute suggests that up to 40 million Americans could lose their homes as a result of their lapsed eviction protections. That’s 12 percent of the overall US population.
In a press conference after the signing, Trump said he wouldn’t let people be evicted, but didn’t specify how.
As of Aug. 25, the final remaining eviction protection created from the CARES Act vanished and the executive arrangement offers no good replacement. Without protection in the order– or by a relief package from Congress– a national housing crisis looms in the horizon as September rent is due in a matter of days for tens of millions of tenants.
Will there be an additional check in the mail to get a one-time stimulus payment or improved unemployment? Both are possible.
The current directive renders the decision to prohibit evictions in the palms of Health and Human Services Secretary Alex Azar and Centers for Disease Control and Prevention Director Robert Redfield, taking no official stance itself. It also doesn’t say whether it will offer financial aid to tenants, leaving that decision to Mnuchin and Housing and Urban Development Secretary Ben Carson.
In contrast, the CARES Act banned late penalties and eviction filings until July 25 on properties backed by national mortgage programs such as Fannie Mae, or the ones that receive federal funding such as HUD.
Student loan repayment deferral extends original deadline.
The White House’s memorandum on student loan deferral proceeds to waive student loan until Dec. 31, extending the current relief under the CARES Act that’s set to expire Sept. 30 by two weeks. Payments are scheduled to restart on Jan. 1, 2021.
There’s a catch: Trump’s memo applies to loans "held by the Department of Education," that doesn’t include privately held student loans, such as through a bank.
If your student loan is deferred, it’s potential you will need to constitute the entire amount afterwards.
The contentious payroll tax cut: How it works.
A pet project of Trump’s he’s been pushing for weeks, the "payroll tax holiday" seeks to defer your federal tax exempt, which usually means you’d take home more cash per paycheck — temporarily. Because this is a deferral and not tax forgiveness, you’d still need to pay those taxes following the deferral period passes, though without having to pay additional tax or interest. The memo includes language to explore paths for eliminating the deferred tax entirely.
The fine print: Trump’s memorandum covers a four-month period from Sept. 1 through Dec. 31, for individuals earning less than $100,000 a year, or less than $4,000 every two months (pretax).
The memo’s language specifies that Mnuchin, as Treasury secretary, can exercise his authority to "defer the withholding, payment and deposit of their tax. " According to this US Code cited, Mnuchin could expand this for one year.
Payroll taxes finance Social Security and Medicare. In a letter to the Senate on Monday, Social Security Chief Actuary Stephen Goss said that when a permanent payroll tax cut were put in place, the plan could be out of funding from mid-2023 (Goss estimates this when the change were to take effect for earnings beginning Jan. 1, 2021.)
Congress is approved with writing and passing laws concerning financial choices. The White House can’t forgive taxation without Congressional approval. Trump signaled on Aug. 7 he’s unconcerned with being sued.
"Well, you consistently get sued. All you do, you get sued," he said.
How can an executive arrangement differ from legislation?
Thus far, the executive activities signed by Trump will pay for just the four topics above, in place of the large extent of the Democrats’ or Republicans’ stimulus proposals. Democrats have said an executive order won’t go far enough.
Schumer has pointed out specifics the orders lacked. While there might be action taken on this in the future, so far, Trump’s newly signed policies Don’t address:
Testing, tracing and treatment of COVID-19 Money required to safely reopen schools and supply personal protective gear Food assistance Assist for state and local governments Money ensuring that elections could be safely carried out Money to keep post offices open to elections.
There are limitations to this president’s executive powers, which might be put to the test in the forthcoming days.
Will discussions over the stimulation package last?
Both Democratic and White House negotiators are open to discussions continuing. "If we could find a reasonable deal, we’re willing to do it this week," Mnuchin said.
If the two sides do reach an agreement, September seems like a probable time, and stimulus legislation potentially could go to get a vote . Both chambers have to vote ahead of the laws lands Trump’s desk for his signature.
If you’re searching for more information, we’ve looked at how soon you could get your second stimulus check and compared the HEALS, CARES and Heroes stimulation suggestions.
Lori Grunin contributed to this story.