There’s finally been a breakthrough on a new stimulus plan to inject funds into the economy and help people out who have financially suffered as a result of COVID-19, but it’s not what was expected. The U.S. federal government will be sending direct deposit payments to American citizens in the amount of $600 as soon as next week. The decision was made late on Sunday.
Lawmakers are expected to vote on a $900 billion COVID-19 relief package on Monday. Funds from the relief package are supposed to go towards a weekly enhancement of $300 for individuals receiving unemployment insurance benefits. In addition to the base payment of $600, families with dependent children will receive an additional $600 for each child. A cap has been placed for those who earn more than $75,000 per year.
As part of the relief package, a percentage of the aid will go to COVID-19 testing and vaccine distribution and $284 billion to small business relief via the PPP loans. The plan will include an $82 billion distribution to universities and grade schools. About $15 billion will be distributed to the arts industry, including movie theaters, museums, live venues and other institutions of the arts.
”So much relief, just in time for the holidays,” Treasury Secretary Steve Mnuchin said. “This is a very, very fast way of getting money into the economy. People go out and spend this money, and that helps small businesses. And that helps getting more people back to work.”
Some lawmakers, however, are not happy with the details of the relief package and how its development and approval was rushed.
“It’s terrible,” Indiana Sen. Mike Braun said. “You wouldn’t have that kind of format in anything. It means we are putting all of that responsibility in a few.”
The $600 direct deposits are expected to roll out over the next two weeks.
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