Latest House Coronavirus Stimulus Plan Delays Car Payments and Mortgages

The $2.5 trillion stimulus bill is designed to delay your biggest monthly bills.

BRITAIN-ECONOMY-EU-TRADE-BREXIT-MANUFACTURING
ADRIAN DENNIS—AFP/Getty Images

As we grapple with our new norm, at least for the time being, there are millions of people around the country who are unable to work from home, laid off, or worse, fired because of the ongoing coronavirus outbreak. And since more than half of Americans live paycheck to paycheck, this stoppage may break the nation’s populace, which is why House Democrats unveiled a $2.5 trillion stimulus plan that halts three of your largest monthly bills.

Earlier this week, a Republican-backed Senate stimulus plan failed to meet the majority vote needed for it to pass—a handful of Republicans joined Democrats in voting down the plan. Though that may seem callous in a time where millions of Americans are being affected by the economic shutdown and viral outbreak, the consternation between the sides comes down to Republicans wanting to disperse aid to corporations versus the Democrats hoping to aid average Americans. 

With those negotiations at a stalemate, House Democrats debuted their proposal which would see your car, mortgage, and credit card payments all delayed for a full year. Additionally, those renting their homes or apartments would see a momentary reprieve from paying rent, and student loan borrowers would see $10,000 wiped from their bills. Foreclosures and evictions would be postponed too, similar to how other countries like France, South Korea, and Italy have implemented policies. 

While we’d love to get some relief for our car payments and rent, the downside is that the stimulus plan is not likely to become law. Though these measures would likely positively affect you and me, the bill is being used by Democrats as a negotiating tactic to get key portions of the proposal passed. By releasing it to the world, it puts public pressure on House and Senate Republicans to curtail its want for strictly just corporate bailouts. 

To that end, the bill also requires companies that receive federal aid to restrict executive pay, kill departing executive buyouts, stop stock buybacks, and pay a $15 minimum wage. The Democrats’ bill would also suspend the payroll tax for small businesses, as well as open up loans and grants for those businesses too.

House Speaker Nancy Pelosi told The Hill, "My goal has always been to bring this bill to the floor under unanimous consent, where we're all in agreement," adding, "While we all appreciate the urgency, it's a big responsibility to do it right."

There is some hope that some form of bipartisan stimulus plan could be voted on soon, though. This morning, Senate Minority Leader Chuck Schumer stated that his latest meetings with White House Treasury Secretary Steve Mnuchin concerning the stimulus plan were “very productive.” Schumer added to USA Today, “The few outstanding issues [in the stimulus’ plans language], I don't see any that can't be overcome within the next few hours."

Got a tip? Send us a note: tips@thedrive.com