Since Congress has been unable to come to an agreement regarding a second stimulus package, President Donald Trump signed an executive order on Saturday to extend several economic relief programs amidst the ongoing coronavirus pandemic. What does this executive order mean for Americans? While this does not mean that you will get an additional economic impact payment by way of this memo, you could see more cash in your bank account due to the president's desire for a payroll tax holiday.
According to Forbes, Trump signed one executive order and three executive memorandums on Saturday that covered everything from additional unemployment benefits, an eviction moratorium, student loan forbearance, and, most controversially, a payroll tax holiday. While all of these programs have an effect on Americans dealing with the current health crisis, the potential payroll tax holiday specifically can help individuals keep more money from their paychecks. The president does not have the authority to call for additional stimulus checks unilaterally. The only way for Americans to receive another economic impact payment from the government would involve Congress coming to an agreement in order to pass the next stimulus package.
Even though the president signed this executive order recently, many have already noted that there is a slew of problems involved with it. One of the biggest issues ties back to the unemployment benefits, which have already been a major point of contention between Democrats and Republicans who have been trying to hammer out details for the second stimulus package. In his memo, eligible Americans could receive an additional $400 in unemployment benefits through Dec. 6. This weekly supplement will be funded with $44 billion from the Department of Homeland Security's disaster relief fund. Additionally, governors will have to work with the Federal Emergency Management Administration (FEMA) in order to manage this initiative.
It will reportedly be an uphill battle to even get this initiative off of the ground. States have been asked to contribute $100 of the $400 total for these unemployment benefits, with the federal government's contribution capped at $300. Jobless individuals will have to receive $100 from the state before they can receive any funds from the federal government. Since this would be a new program, the states would have to set something up from scratch, something that experts have said could take months. When and if they are able to set this program up, the initiative could potentially only last four weeks before it runs out of money.