The next round of stimulus packages would include the extension of the federal eviction ban. White House economic advisor Larry Kudlow appeared in a CNN interview last Sunday. He revealed that there are plans to extend the moratorium.
The eviction ban was created under the CARE Act. It has since protected millions of renters from eviction. The eviction ban only applies to federally-backed properties. However, some states and cities have imposed their eviction bans. Some 28 million Americans are at risk of being evicted from their homes if the ban is not extended.
Stimulus package includes a $1,200 check
The relief bill will cost $1 trillion. That is about half of the original cost of the CARES Act. Kudlow said that a part of the new stimulus package would include a $1,200 check. Tapper remarked that people need that money as soon as possible. Those renting are worried about being evicted, he said.
The check is there, and the reemployment bonus is there. The retention bonus is there, Kudlow said. "There will be breaks, tax credits for small businesses and restaurants," he added.
He said that it is a very well rounded stimulus package. And that it is very well-targeted.
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However, the $600 per week unemployment benefits will likely be reduced. Many believed that generous unemployment checks are discouraging people from returning to work.
Kudlow said the administration plans to provide up to 70 percent of laid-off workers' wages. The bill includes reemployment bonuses as well. There are also tax credits to be provided for small businesses.
A previous report last week said that Republicans are considering reducing the unemployment benefit. The proposal was to cut it to $400 per month or $100 per week through the rest of 2020.
Democrats criticized the shift away from the flat rate, Intelligencer reported. "The reason we had $600 was its simplicity," House Speaker Nancy Pelosi said.
The Republican proposal includes a $105 billion for schools that will reopen. There is also funding for COVID-19 testing and vaccines. No amount has been disclosed yet.
Also, the bill protects businesses from pandemic-related lawsuits. That protection extends to other entities, including hospitals, schools, and government agencies.
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U.S. unemployment
The number of unemployed fell to 17.8 million in June, the Bureau of Labor Statistics said. The unemployment rate in June decreased by 2.2 percentage points to 11.1 percent. However, since February, the number of unemployed rose to 12 million. The jobless rate also rose by 7.6 percentage points.
Leasure and hospitality employment rose by 2.1 million. Retail trade employment also increased by 740,000 in June. Except for mining, which lost 10,000 jobs, other sectors also recorded increases in employment. Overall, the total jobs added in June is 4.8 million.
A total of 22 million jobs were lost at the height of the health crisis. About 7.5 million jobs were regained in the last two months.
Kudlow has remained optimistic about the economic recovery. He said that the odds favor a big increase in job creation.
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