What’s in the Final Stimulus Package 2020 Signed into Law on Friday, March 27

Friday, the House voted on the historic $2 Trillion package and Trump signed it into law. So, what’s in the final stimulus package 2020?

In addition to the $1,200 stimulus checks Americans will receive, the bill provides a number of programs to help the American public, businesses, whole industries, and medical facilities.

Billions will go to hospitals that were impacted the most by the coronavirus breakout. As well as state and local governments.

Here’s some of what’s in the final stimulus package 2020

Unemployment benefits

This includes an additional $600 payment up to four months. And regular benefits have been expanded from 26 weeks to 39.

Independent contractors and self-employed, who wouldn’t normally qualify will now be eligible to receive unemployment benefits.

Those who were not laid off during this time, but couldn’t work due to related reasons, would also be eligible. These reasons include:

  1. Those who were diagnosed with COVID-19
  2. Who were waiting for a diagnosis
  3. Had a family member who was diagnosed
  4. Those scheduled to start a job but couldn’t due to a coronavirus shutdown
  5. Those whose head of household died from COVID-19
  6. Employees who were granted leave of absence temporarily, but were not fully laid off, would be eligible

The seven day waiting period is waived.

Paid Family Leave

Individuals who work for companies with 500 or fewer employees will be granted leave to stay home with children who are home from schools and daycares because of the outbreak. If workers were laid off, they need to have worked at that job for 30-60 days to be eligible.

The maximum is $1,000/week and the worker is paid by the employer, who is then reimbursed by the IRS.

Paid Sick Leave

Both full and part time employees will get 80 hours of paid six leave at full pay. The maximum is $511/day.

Employees eligible for paid sick leave are those who can’t work, whether in person or remotely, due to their own medical quarantine or treatment, or who have been ordered into quarantine because they are suspected to have the virus.

Some are eligible for two-thirds of the sick leave – individuals staying home to care for one who’s in quarantine, whether they have it or are suspected to have it. And those who have a child who is out of daycare or school. This is capped at $200/day.

Mortgage and Renter Relief

Mortgagees experiencing financial hardship due to COVID-19 can request forbearance on their payments for up to six months. These must be Fannie Mae and Freddie Mac-backed loans. And borrowers must verify their hardship by submitting a request to their loan servicer.

No foreclosures or evictions from properties with federally-backed mortgages are allowed.

Keep in mind, interest will still accrue. However, additional fees and penalties will not be added.

Landlords with federally-backed mortgages cannot evict tenants or charge penalties or late fees.

Student Loan Relief

The loan relief measures taken last week by the Department of Education have been expanded to include borrowers pursuing loan forgiveness programs, and those who have defaulted on their loans:

  1. Interest will not accrue on federal student loans from April through September, and no payments made
  2. This time of suspended payments will be treated as though payments have been made toward the loan forgiveness
  3. Suspension period also counts for those who are in loan rehabilitation programs (borrowers who are working toward getting their loans out of default)
  4. Suspension will not impact credit reports and scores
  5. Wage garnishments and tax refund seizures will be stopped during this time
  6. The Department of Education will refund approximately $1.8 billion in offsets to more than 830,000 borrowers, which also requires private collection agencies to stop pursuing defaulted debtors

Retirement Plan

Coronavirus-related retirement distributions will be allowed early without the early withdrawal penalty. This is for up to $100,000. Further, individuals can re-contribute to a retirement account within three years without being subject to the usual annual contribution caps.

If the withdrawal does not get repaid, it will be taxed over a three year period at the normal tax rates.

Retirement plan loans limit of $50,000 has been temporarily raised to $100,000, and it can now exceed half of a 401(k) individual’s vested account.

The required minimum distributions for 401(k)s and IRAs for 2020 have been waived for 2020.

Stimulus checks direct to Americans

As you’ve probably heard by now, American adults who meet certain criteria will receive $1,200 direct deposit or check, and $500 for each child under 17.

*Featured image source: WSIS 10