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What the $2 Trillion Stimulus Plan Means for You

Posted On March 31, 2020

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The coronavirus or Covid-19 pandemic has caused a global economic slowdown and American businesses and taxpayers are feeling the impact.  Closures at the state and local level have impacted businesses like gyms and restaurants as they are forced to temporarily close their doors to encourage social distancing.  Travel, sports, and events industries are all experiencing hardship from slowdowns and shutdowns as many Americans postpone travel, national sports leagues delay seasons, and gatherings of 10 or more are discouraged.   

Last week, the White House and the Senate agreed to a $2 trillion stimulus plan to bring relief to those experiencing financial hardship and on Friday the House approved the measure.  Part of the stimulus plan includes direct payment to consumers, depending on their income. 

What the $2 trillion stimulus plan means for Americans:

Direct Payments

  • Single taxpayers who earn $75,000 in adjusted gross income or less would get $1,200. Qualifying children add $500 to the total.
  • Joint filers who earn an adjusted gross income of $150,000 or less would get $2,400. Qualifying children add $500 to the total.
  • The amount would be reduced by 5% of your income above the thresholds, completely phasing out at $99,000 for single filers and $198,000 for joint filers if you have no children.

Student Loan Payments Suspended

  • The Department of Education will suspend payments on federal student loans without late fees or accruing interest, through September 30th.

Unemployment Benefit Boosts

  • Workers who have lost their job and file for unemployment can receive an extra $600 per week for four months on top of their state issued unemployment payment.
  • Unemployment benefits can also be extended an additional 13 weeks. Current unemployment benefits range from 12 weeks to 28 weeks depending on the state.
  • New pandemic unemployment assistance program to provide benefits to workers who are laid off or lose hours due to Covid-19 shutdowns and closures.  This will also include independent contractors and gig workers who would not traditionally qualify for unemployment assistance.

Additional assistance and loan programs will also be available to businesses impacted by Covid-19 slowdowns and closures including airlines.  The Treasury Department will provide $500 billion in loans to impacted businesses.  Hospitals will receive billions to replenish supplies, mitigate the cost of treating uninsured patients and continue to fight against the pandemic.  The Emergency Food Assistance Program will also receive funding to continue to supply food banks. 

 

Sources: CNBC, CNN, Forbes, Fox News