Lawmakers are unlikely to put together another federal stimulus package before certain key parts of the CARES Act—most notably the expanded unemployment insurance—expire. Here’s what you need to know.
A moratorium on evictions for renters living in homes with federally backed mortgages (about one-third of American renters, according to the Washington Post) expires Saturday, July 25; landlords are still required to give 30 days notice before beginning eviction proceedings.
A moratorium on foreclosures for buildings with federally backed mortgages won’t expire until August 31.
Expanded federal unemployment benefits—that extra $600 per week—expire on July 31, but the last payments will go out on July 25 or July 26, depending on the state.
The Pandemic Unemployment Assistance program, which provides federal aid for freelancers and independent contractors not eligible for standard unemployment insurance, will continue through December 31, 2020.
Automatic forbearance for federal student loans (not private loans) will end on September 30.
Penalty-free early withdrawals of up to $100,000 from 401(k)s, IRAs, and other eligible retirement accounts (with a valid, Covid-19-related reason) are allowed through December 31, 2020; required minimum distributions are also suspended for the year.
What to watch for
Senate Republicans are expected to unveil their proposal for the next round of stimulus legislation early next week. The package was delayed after several days of tense negotiations with the White House, in part because GOP leaders were unable to agree on an extension or modification of the special federal unemployment benefits that top up state payments by $600 a week. In May, the Democratic controlled House passed a $3 trillion stimulus package that would have continued unemployment checks at the $600 level. But Republicans are unlikely to agree to continue such large payments, which they see as a disincentive for beneficiaries to return to work. Once Republicans present their proposal, negotiations with Democrats will begin.
Get The Best Financial Tips
Straight to your inbox
Subscribe to our mailing list and get interesting stuff and updates to your email inbox.
Thank you for subscribing.