Aug 08, 2020
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President Donald Trump on Saturday signed executive orders offering less unemployment insurance than the last coronavirus relief bill, extending protections for student borrowers and renters, along with a measure temporarily deferring the payroll tax—after negotiations on Capitol Hill for a coronavirus relief bill broke down this week.
The order continues weekly unemployment payments that expired in July under the previous relief bill, but cuts the benefit to $400 from $600, and directs states to cover 25% of the cost.
Under the CARES Act, passed in late March, the $600 payment was fully paid for by the federal government—but under the order, the federal government is on the hook for $300 while states are being asked to pay $100.
The measures do not include another round of $1,200 stimulus checks.
Trump said the order also allows employers to “defer payment of the employee portion” of the payroll tax for workers making less than $100,000 per year, retroactively starting August 1 until the end of the year.
Trump has long called for a payroll tax cut as a mechanism for coronavirus economic relief, but the idea was rejected by both parties during negotiations for the first stimulus bill over concerns it would negatively impact Social Security and Medicare funding while not benefitting retired people or those who are unemployed.
Read the full article at Forbes