July 28, 2020: The new stimulus package was announced on Monday called the HEALS Act (the Health Economic Assistance Liability Protection and Schools Act) of $1 trillion. Previously the Democrats had proposed a $3trillion+ stimulus package that was rejected by the Republicans as too big.
Things to know about the new stimulus package:
- The set standards for the second stimulus payments is:
- One time stimulus payment of $1200 for each individual
- One time stimulus payment of $2400 for married or joint filers
- One time stimulus payment of $500 for dependants
- To qualify for the second stimulus, your income in the previous year should be less than $75,000 for individual and $150,000 for joint filers
- The supplementary benefit of $600 for laid-off employees will expire on July 26, 2020, upon the announcement of a new stimulus package
- Independent contractors, freelancers, and gig workers will continue to receive $600 per week till December this year
- The expansion of PP loan is announced, and with the simple process the new package also helps to take the second loan
- There will be no payroll tax cut in the new stimulus as well.
- There will not be student loan forgiveness that was initially included by the democrats in their package.
- Return to work bonus is still under discussion, but as per the resource, there will be a $450 per week bonus for a certain time to motivate workers to get back.
- There was no point discussed on a stimulus package for the state and local government.
- A new stimulus package focused on granting $16 million for COVID-19 testing and, $9billion that was approved in the previous stimulus will be used for testing.
A total of $105 billion will go towards the Department of Education. $70 billion will go to K-12 and $29 to higher education. An additional $5 billion will go towards Governor’s funds to be designated for either K-12 or higher education
The planned stimulus included the income range of less than $40,000 that was further rejected and considered to be $75,000. The return to work bonus is the next good thing about returning to work. The current unemployment benefit is forcing people to stay back at home without working which is forcing the government to rethink the issue.
The Second stimulus will be in action from August 7, 2020.