Next Stimulus Package: What Is Trump Planning to Include?

After the collapse of stimulus talks in Washington, United States President Donald Trump worked towards several executive orders that supported Americans with the extension of the eviction moratorium, enhancing unemployment benefits, and helping students with their debts.

In March, the federal government made a historical move of passing into law a $2.2 trillion stimulus package that also included an expansion of unemployment benefits and helped small businesses with a $349 billion lending program.

Next stimulus package

According to MSN, Trump's plans are included in ongoing negotiations of Congress for another stimulus package. The actions involve cutting off Social Security and Medicare funding, two programs that the US president vowed to leave alone during his 2016 campaign.

The decision relates to the payroll tax that Trump has frequently recommended to aid Americans during the coronavirus pandemic.

The unemployment benefits would also be affected, going from $600 every week to only $400 but requiring each state to shoulder the remaining payment.

The previous stimulus package included a $1,200 direct payment that helped US citizens in their daily lives and allowed the economy to survive. The major problem the bill encountered was it ended in July without a replacement being put in its place.

Trump responded to the necessity of the funds by issuing four executive actions, one of which was an executive order, which is the only one that the US president had the authority to push through, and aimed to extend eviction moratorium after the expiry of the previous one.

Trump's other three actions were memoranda and do not require the US president to use his authority for them to be issued, unlike executive orders. Experts believe the decision shows Trump's authority in taxation and spending that Congress has had for a long time for every single one of the actions he's planned to implement.

Some critics have openly expressed their comments on Trump's actions, including House Speaker Nancy Pelosi, who said that the US president's decisions were not constitutional.

Also Read: Smaller COVID-19 Stimulus Bill Coming? Proposal Might Be Submitted to Congress

No stimulus check?

Republicans, on the other hand, may propose a smaller stimulus plan, which would include unemployment benefits or give funding to schools but not offer stimulus checks, as reported by Forbes.

While Democrats and Republicans are still finding it challenging to agree on the next stimulus package and what it would include, right-winged parties could possibly propose a $500 billion stimulus bill, roughly half the size of the previous proposal, the Heals Act.

The new stimulus bill proposal would include several areas and details that both sides support, including enhanced unemployment benefits, school funding, small business loans, and testing supplies for the coronavirus and vaccines.

The major disadvantage of the new proposal is that it would not include a second stimulus check which was previously supported by both parties but has since come to an impasse due to varying views on the amount to be given to dependents where Republicans are proposing $500 for each and Democrats arguing for at least $1,200.

Both Democrats and Republicans agree on several policy areas but vastly differ on the amount of funding that they should give. Democrats are trying to pursue the weekly $600 unemployment benefits as Republicans want to reduce the amount to only $300 to $400 per week.