Published 10:30 IST, August 9th 2020
Trump signs four executive orders for economic relief for Americans amid COVID-19 pandemic
Trump on Saturday signed four executive orders extending economic help to Americans hit by the coronavirus crisis at his golf club in New Jersey
- World News
- 3 min read
United States President Donald Trump on Saturday signed four executive orders extending economic help to Americans hit by the coronavirus crisis at his golf club in New Jersey after failed stimulus package negotiations with opposition Democrats.
The four executive orders include an extension of the federal unemployment supplement at a reduced rate of $400 per week, a payroll tax holiday through the end of the year for American citizens earning less than $100,000, Deferring student loan relief through the end of the year and a renewal of the eviction moratorium to keep struggling Americans in their homes.
Trump's orders likely to face court challenges
Trump's executive orders are likely to face court challenges as they didn't meet the Democrats' demand for a massive new $3 trillion stimulus package that aimed at propping up the economy. Democrats, Republicans and White House negotiators worked all last week without coming close to a deal on a congressional relief bill of giving the unemployed an extra $600 a week. Democrats further announced they could drop the price tag but refused the Republicans' offer of a $1 trillion package.
Trump announces Unemployment benefits
While speaking about the Unemployment benefits Trump said he is taking action to provide an additional or extra $400 a week and expand benefits that is generous and wants to take care of his people. Under the CARES Act citizens were provided a $600-per-week unemployment insurance benefit however this act expired on July 31 this year. The new executive order by Trump extends the benefit at a reduced rate of a $400 payment per week. According to Trump Administration, they reduced the amount of unemployment benefits because they feared that the $600 supplement was preventing workers from re-entering the workforce. Trump further said $300 or 75 percent of the enhanced aid will come from the federal government, and $100 or 25 percent will, therefore, have to come from the states.
Executive orders on eviction relief and student loan
Trump's executive order for eviction relief states that in consultation with the Secretary of the Treasury, the Director of Federal Housing Finance Agency shall review all existing authorities and resources that may be used to prevent evictions and foreclosures for homeowners and renters resulting from hardships caused by COVID-19. Meanwhile, GOP's executive order related to students will provide respite for new graduates and young professionals as the loans extend deferments and calls for the temporary cessation of payments and the waiver of all interest on student loans held by the Department of Education until the end of 2020.
Trump provides a payroll tax holiday to Americans
Furthermore, Trump has pushed for a cut to the payroll tax for several weeks. The executive order gives a payroll tax holiday till December 31, 2020, and states that the deferral shall be made available with respect to any employee whose wages or compensation, is less than $100,000.
Updated 10:30 IST, August 9th 2020