If you’ve been counting down the moments until you get your hands on another $1,200 stimulus check, you’re probably feeling very disappointed. Negotiations on another stimulus package continue to be at a standstill, and that’s even though unextended unemployment benefits included in the CARES Act expired on July 31st. 

There is plenty of hope a deal could be reached in the next few weeks, but the second round of stimulus could look entirely different than the first.

For example, it’s possible the next round of stimulus payments could come in at the same $1,200 for individuals and their dependents, but there’s also a chance individual payment amounts will be less robust.

Here’s what we know so far, and some updates on the assistance you could receive from the federal government over the coming weeks and months. 

Forbes Advisor$600 Unemployment‌ ‌Benefits‌ ‌Boost‌:‌ ‌How‌ ‌Much‌ ‌Could ‌You‌ ‌Receive?‌

5.4 Million Americans are at Risk

First off, where are we now? While new coronavirus cases appear to be slowing down nationwide and the stock market is definitely on an upswing, Morning Consult economist John Leer writes that we are not out of the woods yet when it comes to the economy. 

According to recent analysis, as many as 5.4 million unemployed Americans may not be able to cover living expenses without some help in the form of extended unemployment benefits by the end of August. This includes regular bills most Americans have, ranging from their rent payments to groceries, auto payments, and insurance  Without more assistance, 9.2 millions could face the same fate by the end of September, Leer notes. 

It is also crucial to understand that job losses caused by COVID-19 have not stopped, meaning the financial pain felt by Americans could get even worse. “As the virus spreads and employers shrink their workforces, more Americans will become unemployed,” writes Leer. 

With more bad news potentially on its way, the next round of economic stimulus may not even be the last. 

What Happens Next

Congress is still debating inclusions on a final package, yet Republicans and Democrats appear to be far from reaching a compromise. Plenty of proposals have been suggested on both sides of the aisle, yet they’re all slightly unique and the price tags for each vary by billions of dollars. 

The HEALS Act, which was proposed by Senate Republicans in July, would include $1,200 in stimulus payments to individuals and $500 per qualified dependent, which mimics payments made in the CARES Act which passed in March. This act also includes extended unemployment benefits, small business support, increased spending on education and healthcare and more. The cost of the HEALS Act, as originally proposed, would be $1.1 trillion. 

However, the HEROES Act, which was passed by House Democrats in May, would give individuals $1,200 each and another $1,200 for dependents. However, the HEROES Act limits dependents to three, so the maximum a family could receive is capped at $6,000. At over $3 trillion dollars, the HEROES Act also includes a range of benefits meant to help bolster small businesses, provide student loan debt relief, reduce taxes and more. 

Both the HEALS Act and the HEROES Act also include adult dependents in the calculation (unlike the CARES Act), so families with kids in college or disabled adult children stand to benefit. 

Another idea, called the Coronavirus Assistance for American Families Act, would include $1,000 stimulus payments for individuals and dependents. This plan would use the same formula as the CARES Act to phase out high earners, with individuals earning $75,000 or more and couples earning over $150,000 per year seeing their stimulus payment phased out. While stimulus payments would be lower with this plan, families with children stand to benefit more due to the higher payment for each dependent. 

Obviously, it will take more negotiation for Congress to reach a compromise of these options and others that have been proposed, yet we don’t know how quickly an agreement might be reached. 

In the interim, President Trump has stated an executive order may be on its way to handle some of the most pressing issues Americans face. His executive order could include a payroll tax cut, unemployment benefits to replace the $600 unemployment checks that expired on July 31st, protection from eviction for renters and homeowners, and extended student loan repayment benefits. 

The Bottom Line

If you’re eagerly awaiting another stimulus payment or news on extended unemployment benefits, all you can do is wait it out. The same can be said if you’re stuck wondering if interest on your federal student loans will begin accruing again beyond September 30th, and if you’ll have to start making payments again. It’s always possible an agreement could be reached by Congress next week, but nobody knows for sure. 

With 30 million Americans losing out on the additional $600 in weekly unemployment benefits they were receiving as of July 31st, time is of the essence. Only time will tell what the next stimulus package will look like, what it will include, and who will be helped the most.

President Donald Trump told the White House staff to keep working on an executive order if Congress does not finalize a new stimulus package.

Here’s what you need to know.

Stimulus Package

Before departing for Ohio today, Trump tweeted: “Upon departing the Oval Office for Ohio, I’ve notified my staff to continue working on an Executive Order with respect to Payroll Tax Cut, Eviction Protections, Unemployment Extensions, and Student Loan Repayment Options.”

Trump wants at least these policies — a payroll tax cut, eviction protections, unemployment benefits and student loan repayment options — to be included in the next stimulus package. Trump is also keen on including second stimulus checks too. The Senate is expected to begin summer recess after tomorrow, although Congress may forgo recess to remain in session to finalize a stimulus deal. If not, Trump has said repeatedly that he may use executive orders if Congress doesn’t act. Based on Trump’s tweet, here are some policies that could be included in a Trump executive order:

Payroll Tax Cut

Trump has said repeatedly that he wants to suspend payroll taxes and wants a payroll tax cut in the next stimulus package. While Congress did not include a payroll tax cut in the Heals Act, Trump apparently is willing to pursue a payroll tax cut through executive order. By suspending or cutting payroll taxes for employers, an employer could save money to spend on other priorities and potentially forgo layoffs or furloughs. This could help spur an economic recovery and provide liquidity to struggling companies. Payroll tax holidays, by definition, exclude those who are unemployed or retired. They also result in less revenue for the federal government, particularly for Social Security and Medicare. Legal experts have raised questions, under Separation of Powers, whether a president and not Congress has the power to cut taxes. Under Article I of the U.S. Constitution, only Congress has the power to “lay and collect taxes.”

Student Loans

Previously, Trump has supported simplifying federal student loan repayment plans to avoid confusion among borrowers and make them easier to manage. Like most congressional Republicans and U.S. Secretary of Education Betsy DeVos, Trump has not supported immediate, outright student loan forgiveness. Many student loan borrowers have asked what the new stimulus package means for student loans. That said, the Heals Act includes a new student loan repayment proposal, but does not include outright student loan forgiveness. Sen. Lamar Alexander (R-TN), who chairs the Senate Health, Education, Labor and Pensions Committee, proposed a new student loan repayment plan in the Heals Act that, among other things, provides student loan relief to borrowers without income. Under Alexander’s plan, if you have no income, you would make no federal student loan payments until you earn income. If you have income, your monthly federal student loan payments would be based on 10% of discretionary income. Like current income-driven repayment plans, a borrower could receive federal student loan forgiveness after 20 or 25 years of student loan payments.

Will the student loan relief in the Cares Act be extended? Trump has said that student loans may be suspended for “additional periods of time.” The Cares Act provided multiple student loan benefits, including pausing federal student loan payments and setting interest rates to 0% on federal student loans through September 30. The Heals Act does not include any extension of the Cares Act student loan relief, although Alexander’s plan effectively pauses student loan payments for borrowers with no income. It’s unclear whether Trump’s potential actions would mirror Alexander’s plan or take an alternative path. Importantly, prior to the Cares Act, in the wake of the Covid-19 pandemic, Trump used a 60-day executive order to pause student loan payments, set interest rates to 0% for federal student loans and halt federal student loan debt collection.

Unemployment Benefits

Trump says that he wants to extend unemployment benefits. The $600 a week unemployment insurance benefit ended in July, and Congress did not agree to extend these supplemental benefits before the expiration. In 49 states, recipients received their final unemployment check on July 25, and in New York, recipients last received these weekly unemployment benefits on July 26. In the Heals Act, Senate Republicans proposed to would reduce unemployment benefits to approximately “70% wage replacement.” The wage replacement would equate to about $200 a week under this proposal. Many Republicans have believed that the $600 a week unemployment benefit creates a disincentive for recipients to return to work. Sen. Mitt Romney (R-UT) and other Senate Republicans proposed an alternative plan to extend unemployment benefits. However, Senate Majority Leader Mitch McConnell (R-KY) now said he would be willing to support $600 a week unemployment benefits if the White House agrees.

Eviction Protections

Trump says that he wants to protect Americans from losing their home through eviction as a result of Covid-19. The Cares Act placed a 120-day moratorium on evictions. However, that eviction moratorium expired on July 25, 2020. In the wake of the Covid-19 pandemic, states such as New York, California, Texas and Florida could experience the most evictions based on rent costs and unemployment rate. More than 40 million Americans have filed for unemployment benefits as a result of Covid-19, and many renters have been disproportionately impacted by Covid-19, including losing their job in industries such as travel and hospitality. Sen. Elizabeth Warren (D-MA) Protecting Renters From Evictions and Fees Act, which would halt evictions through March 2021. While not included in the Heals Act, the Senate could extend the provisions in the Cares Act if Congress decides to offer additional relief to renters. Rep. Maxine Waters (D-CA) also introduced the Emergency Housing Protections and Relief Act of 2020 in the House of Representatives to provide $100 billion in emergency relief to renters, extend the Cares Act eviction moratorium until March 2021, and provide $75 billion in relief for homeowners. It’s unclear whether Trump’s potential executive order would incorporate any parts of these proposals or include an alternative path.

Next Steps

When will Congress agree on the next stimulus package? It depends who you ask. Some say a deal could come next week, while others say Democrats and Republicans are too far apart. Based on this key stimulus timeline, Congress was expected to reach a deal by August 7. That now appears unlikely, which could push a stimulus deal to next week. It appears that Congress agrees on $1,200 stimulus checks. However, Trump has also noted that he wants second stimulus checks more than $1,200. If Congress can’t agree, it’s possible that Trump issues executive orders on these policy proposal, and potentially more.

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