- Friday, the US congress passed an historic $2 trillion fiscal stimulus bill that was then signed by President Donald Trump.
- The bill includes one-time payments of up to $1,200 for individuals, $2,400 for married couples filing jointly, and $500 per child.
- The bill is aimed at stemming the economic devastation wrought by the novel coronavirus pandemic.
The coronavirus pandemic has produced another first. Friday, the US congress passed an historic $2 trillion fiscal stimulus bill that was then signed by President Donald Trump. The scale of the bill is believed to be the largest in history.
The bill follows unprecedented economic events. The economy has continued to reel from the effects of the Covid-19 pandemic, despite the Federal Reserve all but exhausting the tools in the monetary policy toolbox. After the central bank’s historic moves the major indexes continued to drop, posting their fastest 30% decline since the Great Depression. Last week alone, 3.3 million workers filed initial unemployment claims.
The U.S. now has the highest number of confirmed cases of the novel coronavirus, over 92,000. At least 1,300 US deaths have been linked to the virus.
The bill includes direct payments to individuals including one-time payments of up to $1,200 for individuals, $2,400 for married couples filing jointly, and $500 per child for individuals making $75,000 or less. Between $75,000 and $99,000, individuals will receive partial payments in a tiered plan. Payments will be sent by the IRS directly to individuals by mail or by direct deposit to the taxpayers bank account on file.
Seniors and eligible unemployed individuals will receive the payment. Individuals who file taxes with an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number will not receive the one-time payment, however, causing outrage among progressives in congress.
Gig-workers and self employed individuals will also be able to file for state unemployment and receive an additional $600 per week from the Federal government. The additional weekly Federal funds would cover weeks of unemployment ending July 31.
This story is developing.