Second Stimulus Check: Here's What the HEALS Act Is Missing
08/01/2020 10:00 pm EDT
Unemployment Enhancement
The emergency enhancement to unemployment payments guaranteed by the CARES Act provided $600 per week to laid off Americans, but that program expired this month. Many expected any stimulus package to extend that program, but McConnell's legislation proposes something very different. Under the HEALS Act, unemployed Americans would get an additional $200 per week in their check.
Even that would be temporary, as the bill also instructs state and local governments to prop up a new system for calculating unemployment payments based on past income. Critics argue that this is impractical, and unecessary, as the previous system was working well for many people.
According to The Washington Post, this is the major point where Democrats intend to put their foot down in negotiations. They will insist on extending the $600 unemployment enhancement before considering any other compromises.
State and Local Government Funding
The CARES Act provided funding for state and local governments to perform coronavirus testing and other pandemic-related functions, and the HEROES Act proposed to provide even more. The HEALS Act provides no new funding for these programs, but instead revises the rules from the CARES Act so that states and municipalities can do more with the money they already have.
According to a report by Forbes, the CARES Act prohibited states from using this federal funding to cover budget shortfalls resulting from the coronavirus pandemic. The HEALS Act would remove this restriction, allowing states to use this money much more broadly. The biggest restriction left on this money would be to stop it from being used for state employees' pension plans.
Housing Assistance
The CARES Act imposed a 120-day moratorium on evictions from any properties where the government had backed the mortgage. At the time, many critics argued that this was still not enough, yet the HEALS Act does not even include an extension of this measure. The moratorium expired on July 24, and the HEALS Act is in no hurry to extend or replace it.
According to a report by USA Today, more than a quarter of Americans were unable to make their housing payment in July, and the number is expected to continue to rise. Serious proposals over the last few months have ranged from federal housing assistance programs to full-on rent and mortgage cancellations, in order to prevent a mass homelessness problem in the midst of a pandemic.
Timeline
Another big problem critics cite in the HEALS Act is the general lack of a clear timeline or cohesive plan to get the law passed and implemented. According to Forbes, Sen. Ted Cruz asked: "what the hell are we doing?" when presented with the bill, while McConnell said: "Hopefully we can come together behind some package we can agree on in th next few weeks."
The lack of urgency on this project has frustrated critics of the HEALS Act, including working Americans in need of assistance. Democrats have repeatedly pointed out that they passed a stimulus bill back in May, but rather than working with them on compromises, McConnell led the Senate to table the issue for two months. This lack of concern with the timeline implies to some that McConnell does not really want to pass a stimulus package at all.
Hazard Pay
Among the items Democrats and Republicans are expected to squabble over in the HEALS Act is a program creating extensive "liability shields," protecting business owners from lawsuits if people contract COVID-19 on their premises. McConnell told CNBC on Tuesday that this is a point where he will not negotiate at all, while his political opponents not only want this measure removed — they want it replaced with hazard pay for workers who do have to show up during this crisis.
Several of the more obscure stimulus plans have included robust harzard pay enhancements for essential workers, though so far none have passed. Lawmakers like Sen. Bernie Sanders continue to insist on paying workers for the risk they are taking just by showing up during this outbreak.
Food Assistance
Similarly, critics have called for the HEALS Act or other stimulus packages to include food assistance, as about 20 percent of American workers are unemployed at the time of this writing. Since the pandemic began, programs like food banks and community pantries have been stretched to their breaking points, and many lawmakers are calling on the federal government to help ensure Americans are fed.
Regular Payments
Finally, some legislators are still beating the drum for a stimulus check to be sent out every month until the coronavirus crisis is over. As recently as Wednesday, Sen. Kamala Harris assured her Twitter followers that she is still "fighting" for her plan for a $2,000 per month stimulus check to be sent to Americans until at least three months after the COVID-19 pandemic is officially over. A similar plan stalled in Congress, but for those in need any sliver of hope is welcome.
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