President Trump’s administration has proposed a stimulus package to cushion the economy from the effects of the coronavirus outbreak. The package includes two rounds of $500 billion direct payments to taxpayers and another $500 billion set for businesses to mitigate financial effects of the COVID-19 pandemic
Low-income taxpayers to receive $1,000 checks
The White House has indicated that they will base the payments to taxpayers on income level and size. The first batch of payments is expected on April 6th, while the second will be on May 18th. On Wednesday Trump indicated that they had not determined the size of the checks as they were considering the different number
For weeks Trump has been downplaying the coronavirus outbreak, but on Wednesday, he appeared to change his stand and embrace the extent of the calamity. He has also asked federal agencies to suspend all evictions and foreclosures until the end of next month as the impact of the pandemic sets across the globe. The US and Canada have agreed to stop nonessential movement across the border.
Congress is currently discussing the proposal, and some Senate Republican is calling for checks of around $1,000 for taxpayers. However, Democratic Senate Leader Charles Schumer said that it should be higher. On Wednesday, Schumer said that it is time to be bold and aggressive, and he asked fort frequent payments for this in need.
$500 billion set to bail struggling businesses
Besides the direct payments, the administration has also set aside $150 billion for other distressed sectors as well as $50 billion for the airline sector. Although it is not clear the industries expected to benefit from the package but the hotel and tourism industries will be among the industries covered in the relief because they have been the worst hit.
Around $300 billion has been set for a business interruption loan program for smaller businesses that have had to shut down during this crisis. The loans will help businesses that have been affected by the coronavirus pandemic.