Due to COVID 19, the ongoing economic crisis has caused the USA’s most significant unemployment rate. People are now relying on their unemployment payments, and stimulus checks that they are receiving from the Federal government under the CARES Act mainstreamed in the last week of March 2020.
Until now, people are receiving stimulus payments from the $2 trillion package, but crisis due to the COVID 19 is going nowhere in a downturn. So, this time, the Federal government feels the need for a more promising package to reduce people’s economic problems. This time government is set to put $3 trillion for the welfare of unemployed people and businesses in the USA.
But, amid the increasing tensions between Democrats and Ruling Republicans, there are genuinely fewer chances that this HEROES Act will prevail. The economic numbers are now showing quite a positive gesture for the USA’s businesses. Let us see how the government will respond to the ramifications of people belonging to different companies in the USA.
The Current Situation of the HEROES Act:
Because of the aggravating and worsening situation of the USA’s economy, earlier house of Representatives provided the HEROES Act with a go-ahead. After passing from the house of representatives, the bill is yet to face a lot of criticism in the Senate. According to the Democrats, there is less need for this much blatant relief package because it is getting better with time.
But, the matter got further delayed when some Republicans also raised concerns over the relief package. Therefore, it appears hard for the bill to be passed from the Senate. Even if the package gets approval from the Senate, what will be the amounts Stimulus checks will offer for people.
According to Mitch McConnell, the Senate Majority Leader,
“Any further stimulus would be smaller than the CARES Act.”
Even if the bill gets approved from the Senate, still the stimulus checks will offer the lower payment than provided by the CARES Act. However, this package will be comprised of $3 trillion, which more prominent that CARES Act by $1 trillion; the Stimulus checks will offer a lower amount for people.
The root of the problem is that Republicans are not convinced with the need for this package. Instead, they are demanding the extension of unemployment benefits from July 2020 to January of 2021. This is how, without mainstreaming a new act, unemployed people will continue receiving unemployment payments from the Federal government.
Voting for the HEROES Act:
Amid severe criticism from the Democrats over the mainstreaming of HEROES Act, there are genuinely fewer chances of getting this bill approved from the Senate. Moreover, the support from a few of the Republican members put this matter further behind.
Earlier, it was announced that the voting would be done either at the start of June or in the last week of June. But, there are no fewer voting opportunities, as some of the Senators from Republicans are also not convinced about the need for this colossal welfare package.
Protection for Frontline Worker and Teachers:
Along with the extension in the period of unemployment payments from July 2020 to January 2021, Republicans also demanded the protection for frontline worker sand teachers by putting billions of dollars for the welfare of these two sectors. Meanwhile, they also requested $200 billion for the welfare of essential workers.
So, if the Senate does not approve the HEROES Act bill, the Stimulus payments will remain the same as they are now. Now, everyone with three dependent persons is having $1200 with $500 additional for the qualifying child under the age of 17. So, For Republicans, this deal is a hard nut to crack, and there are fewer chances for this plan to prevail practically.
On the other hand, the Federal Government is of the view that still the USA did not face the second wave of the Corona Virus, and in case of emergency, there must be a contingency plan to cope with the dangling menace. However, even if the bill is passed from the Senate, it will be the last stimulus payment for the USA’s unemployed people.
Are Jobs Coming Back to the People?
Having seen the most significant unemployment rate in 3 to 4 months, the US government is now fully set to bring back the state’s economy. It has been heard that the Federal government is about to announce 2.5 million jobs in May, but nothing like this happened, and now this claim is being made for June.
On the other hand, analysts were of the view that there will be added 8 million people in the number of unemployed people. If the news is right, the unemployment rate, which is 13.4%, will decrease by 1.4%.
So, now there is a hope that the economy will gradually get back to its track. But, there’s more to see yet.
The CARES Act was the most significant package in the history of the USA, and no doubt, millions of unemployed people met their needs through the stimulus checks given by the Federal government. But, now the mainstreaming of the HEROES Act is in doll drums, as Republicans and Democrats have no consensus over this issue.
So, there is no more Stimulus checks or payments from the government.
