Congressional leaders finally announced an agreement for new pandemic relief, extending unemployment benefits and new stimulus payments.
On Sunday evening, December 20, 2020, the U.S. Senate Republican and Democratic leaders announced that they finally agreed on a new pandemic relief package.
Majority Leader Mitch McConnell said the following on the floor of the Senate:
More help is on the way. Moments ago, in consultation with our committees, the four leaders of the Senate and House finalized an agreement. It would be another major rescue package for the American people.Sen. Mitch McConnell, Dec. 20, 2020
As of this writing (Sunday evening) the language of the bill has not yet been finalized. It has not passed either the Senate or House of Representative, or been signed into law. So the details are not fully nailed down. But this is what is now very likely to happen:
Extension of Unemployment Benefits
The new law would extend federal unemployment benefits up to $300 per week. This is half as much as the prior $600 weekly benefits from the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Those expired back on July 31, 2020. (Our blog post of April 6, 2020 covered the unemployment benefits under CARES.)
The new $300 weekly benefits could start as early as December 27. This date is currently up in the air but should be finalized in the next day or two. Very likely the benefit would last up to 11 weeks of unemployment.
A separate CARES Act provision gave unemployment benefits to self-employed workers, independent contractors, and gig workers. This is currently expiring on December 31, 2020. The new law will very likely extend this for 11 weeks as well. (See this U.S. Dept. of Labor article about unemployment benefits under CARES.)
There will almost certainly be stimulus checks of $600 per person. Very similar to the CARES Act’s $1,200 checks, the amounts will be less for people earning more than $75,000 in 2019. There will again be a sliding scale, with those with incomes of more than $99,000 receiving nothing.
Unlike the CARES Act, which provided reduced amounts for children, both adults and children will receive $600. Adult dependents are not likely to qualify for these payments.
A nationwide moratorium on evictions is currently expiring on December 31, 2020. (Our blog post of September 9, 2020 is about this moratorium.) The new law will extend that by one month, to the end of January 31, 2020.
The pending law apparently has about $25 billion in funding for emergency renter assistance. We don’t yet know how the new law will allocate these funds.
Next . . .
At this writing Congress will likely vote on this new law early this week, with the expectation that the President will sign it before Christmas. Congress has haggled over this for months, with numerous delays, so we’ll see in the next few days.
Assuming that this new pandemic relief agreement does become law, we’ll cover its details in our next few blog posts. If you need more information before then, contact us, your Louisville bankruptcy lawyers.