Trump signs executive orders affecting unemployment benefits, evictions and student loans
Updated on 08/08/2020.
President Trump signed executive orders on Saturday after negotiations on a stimulus package failed between White House officials and Congress.
The orders extend the unemployment insurance supplement that expired last week, but reduce benefits from $ 600 per week to $ 400. The orders also extend the eviction moratorium for tenants, which also expired last month. Finally, the orders also postpone student loan payments until the end of the year and introduce a payroll tax cut for those earning less than $ 100,000 a year.
Analysts expect that executive orders will face legal challenges. It is expected that Congress will continue to seek an agreement to send another round of economic reviews to the households.
The stimulus bill negotiators have failed to reach an agreement within their self-imposed deadline, and the White House is considering alternative routes. According to reports, Steve Mnuchin and Mark Meadows will recommend President Trump sign an executive order on “Unemployment Insurance, Foreclosures and Student Loan Deferment.”
Democratic leaders are pushing for a major stimulus package to expand many of the core principles of the CARES law. At the same time, the GOP is divided, but advocates a smaller package that includes liability protection to encourage schools and businesses to reopen without fear of legal proceedings.
Earlier this week, Mnuchin said, “Our goal is to try to reach an agreement on the most important issues by Friday. If we cannot reach an agreement on the main issues, it will be difficult to reach an agreement.” It seems that his prediction was correct.
If President Trump issues an executive order on unemployment, evictions and student loans, it means that economic controls will not be considered. That means millions of Americans in trouble will have to wait for a stimulus deal to be reached. It is unclear when that would happen.
Democrats, Republicans and White House officials all agree that another round of control is necessary, but other parts of a potential stimulus package have proven polarizing.
Yesterday Trump tweeted, “After I left the Oval Office for Ohio, I notified my employees to continue working on a payroll, eviction protection, unemployment extension and student loan repayment order.” Leaders of both political parties have stated that they do not support a wage tax cut as it would cut revenues while it would not help those who have already lost their jobs.
New York schools could be reopened in person
Governor Andrew Cuomo announced that New York schools will be able to open for face-to-face tuition this fall if they meet certain criteria. Both the HEROES law and the proposed HEALS law involve funding schools, so failure to negotiate a new stimulus package raises the question of whether schools will have the resources to open safely.
Unemployment and eviction are a priority
The loss of $ 600 a week in unemployment benefits will no doubt leave many Americans in the lurch. A Trump executive order would provide massive relief for the millions of unemployed who need more help.
Even after the eviction moratorium from the CARES law expired last month, many tenants are threatened with eviction proceedings. Mnuchin and Meadows are also pushing for an extended deferral of student loans, underscoring their understanding that young Americans have been hit extremely hard by the financial fallout from the pandemic. Younger age groups are heavily represented in the hospitality industry, which has been decimated by closings, restrictions and changing consumer behavior.
The majority of Americans surveyed want the federal government to take aggressive measures to contain the spread of the virus. This includes the government taking on more debt to extend unemployment benefits and issue another round of economic checks. This desire runs counter to many politicians who are wary of increasing the record deficits any further.
Congress is due to begin its August hiatus, but Mitch McConnell has announced that the Senate will postpone its hiatus to further push for an agreement. McConnell has been sidelined during the ongoing negotiations, but chances are he may be asked to save a deal. The scenario that neither side wants is for both parties to step down completely as it is clear that another stimulus package is needed as a lifeline to keep families afloat and the economy in the face of high unemployment and an ongoing fight against the coronavirus Keep going.
The Democrat-run House of Representatives was able to pass the $ 3 trillion HEROES bill in May, but McConnell has hinted he’s only comfortable with a deal near $ 1 trillion. It was reported that Nancy Pelosi was ready to meet at the center, but the White House negotiators turned down the offer.
Talks could resume at any time, but very little progress has been made over the past two weeks. Millions of eyes are on Washington as families face the harsh reality of a shrinking economy and an endless end to the pandemic.