Kudlow: New Stimulus Will Include $1,200 Checks, Extended Eviction Moratorium
The next round of coronavirus stimulus will include $1,200 checks and an extension of the federal eviction moratorium, promised White House economic advisor Larry Kudlow on Sunday.
The $1,200 stimulus check is part of the relief plan. The bill worth $1 trillion has been finalized and will be introduced on Monday.
Other than stimulus checks, it will also give temporary and reduced extension of unemployment benefits, businesses protections and funding for school restart, reported CNBC.
Forbes reported that the eviction moratorium just expired Friday after four months of shielding renters from getting evicted. With the extension, the eviction moratorium can still help around 28 million Americans, data from Eviction Lab shows.
Talking about the new relief bill, Kudlow said, "The check is there, the reemployment bonus is there. The retention bonus is there."
The relief bill will also have a $16 billion new funding for testing and tax incentives so that companies will be more inclined to hire their employees again. Kudlow called it a "well rounded" and "well targeted" package.
Kudlow's comments came a week after the Congress shot down the White House's hopes of payroll tax cuts, something that even Kudlow would have wanted, Fox News reported.
"I would have preferred a payroll tax cut, on top of that check," he said to CNN's Jake Tapper. "But, be that as it may, politically, it doesn't work."
Surge of Evictions
Cities all over the U.S. have been setting up for a big increase in evictions with the Friday expiration date. But lawmakers and housing advocates have called for a ban on eviction all over the U.S.
They also asked to cancel rent on top of other forms of housing relief.
There is no official announcement of a deal but Treasury Secretary Steve Mnuchin and White House chief of staff Mark Meadows have met on Capitol Hill to talk about the details of the new relief bill with congress leaders.
Reducing Unemployment Bonuses
On the subject of unemployment bonuses, the $600 amount is likely to be lowered due to concerns of too much payment that have discouraged people from going back to work.
To replace this, the stimulus will have enhanced unemployment benefits in it. Kudlow said the plan to have benefits on about 70% wage replacement is "quite generous by any standard."
Since Congress talks on the bill are still in progress, it is not yet clear when the lower benefits for laid off workers will take effect.
In the midst of the pandemic, above the U.S. unemployment rate has surged to higher than 10%, with nearly 32 million getting unemployment benefits, based on the Labor Department's data.
House Speaker Nancy Pelosi believes a more streamlined approach to the benefit would be a better way to go. "The reason we had $600 was its simplicity," she said, asking why they aren't keeping it simple.
As cases surge across the South and West parts of America, Kudlow stays hopeful about the economy's chances of bouncing back. He said the odds "favor" more jobs that will then lower unemployment.
The GOP relief plan will be introduced on the day marking 100 days before the election.
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