Donald Trump announces historical $2 Trillion US Stimulus Plan but the payoff can be delayed
Heads Up! Trump Administration devices a historical $2 Trillion US Stimulus Plan but the payoffs will delay
- What’s in the Bill?
- What’s Next?
- Allotment of Funds in Trump’s Coronavirus Relief Package
- The Expected Pay Offs
On Thursday morning, America woke up to President Donald Trump’s tweet. In a celebration of Senate’s vote to pass the $2 trillion Coronavirus relief package, Trump wrote, ‘Congratulations AMERICA!’
This historical almost 900-page bill is intended to boost COVID-19 hit American Economy. It’s a first of its kind spending pledge made by the American government. The bill was passed pretty quickly by a vote of 96-0, with four Senator absent due to coronavirus infection.
What’s in the Bill?
The COVID-19 relief package is written by the Trump administration, Republican and Democratic Senate leaders. It was released late Wednesday night and got a clean sweep approval by the Senate.
The bill is designed to expand unemployment benefits. It will also provide a $367 billion program for small businesses to keep the payroll on while all the employees work from home. $10 billion is allotted to help the airlines.
The deadly outbreak in America has claimed more than 1000 lives by far.
Married couples who are making up to $ 150,000 would receive a payment of $2400 under the bill. It would also provide one-time direct payment of $1200 per adult who is earning up to $75,000 a year.
For children under age 17, parents would receive $500 for each child as a COVID-19 response measure.
Allotment of Funds in Trump’s US Stimulus Plan
- Tax breaks: Temporarily waives penalties for virus-related early withdrawals and eases required minimum annual disbursements
- Loans and guarantees to businesses, state and local governments: $500 billion
- Emergency unemployment insurance: $260 billion
- Aid to state and local governments: $150 billion
- Small businesses: Includes $350 billion in loans for companies with 500 employees or fewer
The Senate has sent the House the $2 trillion bill and the voting will take place on Monday. On Wednesday night House Speaker Nancy Pelosi affirms that the House would pass the historic relief package by Friday.
After Democrats blocked two other versions of the bill Pelosi said, the package will be on Donald Trump’s desk by Friday. The bill will be passed by a voice vote as many members are in quarantine, self-isolation or state-mandated stay-at-home order.
The House will conduct a voice vote on Friday where members can say, ‘aye’ or ‘nay’ from the chamber floor to show their agreement. ‘If somebody calls for a recorded vote, and once they know we have options [to pass the bill], they probably won’t call for it,’ Pelosi told Washington Post.
The Expected Payoffs
Treasury Secretary Steve Munchin informed that the package is expected to keep the ‘economy afloat for three months.’ He further added, “The direct payments will be disbursed as soon as April 6.”
However, a senior fellow at Tax Policy Center, Howard Gleckman told CNN, it is more likely to arrive ‘in a month or two.’
CNN reports Trump administration expects to release money within 3 weeks. Mnuchin said, “We’re looking to get a lot more information and we have procedures to do that.”
However, the US Stimulus package exempts businesses owned by the US president, vice president, members of the Congress or heads of executive departments and their children, spouses or in-laws to benefit.