Congress has yet to come together on a new stimulus package as they continue to try to find common ground to merge the HEROES and HEALS Act provisions. After a breakdown of talks on Friday, President Trump signed four executive orders to help taxpayers financially survive the continuing effects of the pandemic.
The first of the orders would provide $400 a week in extended benefits to the unemployed, which is down from the $600 per week promulgated in March under the CARES act. The order indicates that states would be responsible for covering 25% of the cost using the $150 billion Coronavirus Relief Fund, while the remaining Federal funds will come from the $70 billion Disaster Relief Fund. Some states are concerned that they do not have the funds to comply with this order.
The second order allows companies to defer payroll taxes for taxpayers making less than $100,000 a year from September 1 through December 31, 2020. These deferrals will then become due and payable, creating a large liability at some point in the future unless the deferral becomes a permanent tax cut.
The third order extends the deferral of Federal student loan payments due to the pandemic.
The fourth order gives broad discretion to federal housing officials to block the eviction of individuals who are unable to pay their rent.
It is unclear whether these executive orders signed by the President on Saturday are legally binding or an overreach on the President’s part in interpreting the laws of the executive power. It is possible that these orders will be challenged in court as unconstitutional.
We will continue to keep you updated. Should you have any questions, please don’t hesitate to reach out to your tonneson + co representative.