Stimulus Phase IV: An Economic Response to COVID-19

Almost three weeks after Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act, stimulus checks were sent out, unemployment increased, and small businesses continued to collapse. While Phases I, II, and III were beneficial to American citizens, the economic effects of the coronavirus (COVID-19) continue to destroy livelihoods. Parts of specific aid from the CARES Act has run its course, and the time has come for legislators to virtually gather and create a subsequent stimulus package. Within this package, individuals will need further assistance, and businesses will require more extensive measures to prevent closure during this uncertain period. Stimulus Phase IV will focus initially on individuals. This section of the package will repeat and expand the stimulus checks, provide for the uninsured, provide hazard pay to essential workers, specifically aid particular groups of individuals like nursing home residents and workers, SNAP recipients, and lower-income citizens, defer student loans, and restructure taxes.

The stimulus checks are the most beneficial components of the aid package. These allotments provide individual Americans earning less than $75,000 per year to receive $1,200. They can receive more if they are married or have children in their households. However, these benefits need to be repeated and expanded in the next month to include those who do not have a social security number or are dependent. This includes Dreamers, college students, and the disabled. Dreamers are children of the Deferred Action for Childhood Arrivals (DACA) act, and under the CARES Act, these Americans did not receive a stimulus check since they do not have a social security number. When these individuals arrived in the United States, they were minors and were allowed to remain in the country with particular immigration status to allow for temporary residency, a work permit, and possible permanent residency. Now, there are over 700,000 dreamers, and 29,000 of these individuals are working in the health field to save lives during this pandemic (Menendez 2020). They are not receiving aid and are at risk of deportation. At this time, Congress will not deport any of these essential workers, and within Phase IV, they will now qualify to receive the stimulus checks like other Americans.

The CARES Act stimulus check qualifications leave out disabled dependent adults as well. These individuals are completely disabled and claimed as a dependent child by a parent on tax forms regardless of age and employment (Millions of Eligible Americans Won’t Get Coronavirus Stimulus Check 2020). Because they are considered disabled children, they will not receive the stimulus check. Also, their parents or caretakers are not receiving the extra $500 per child aid because they are over the recipient age of sixteen. However, within Phase IV, Congress will now include them in the stimulus check qualification. The additional child aid will now cover all these disabled adults since they are considered dependents. Essentially, the age limit will now be lifted entirely for this population.

Most college students are also considered dependents under their parents, so they do not receive a personal stimulus check, and because they are above sixteen, their parents will not receive the $500 aid (Millions of Eligible Americans Won’t Get Coronavirus Stimulus Check 2020). While some may be under their parents’ care, others are not as fortunate and require further assistance. These students most likely have lost their part-time jobs or work study positions, and while repayment of student loans is currently deferred, they are still in need of income and aid. The Stimulus Phase IV will include dreamers and will lift the child age limit entirely for disabled dependents and college students in the allocation of the stimulus checks. If an individual is considered a dependent, his/her caretakers will receive the allotted $500 aid. Another round of the CARES Act monthly stimulus checks will be sent along with these expansions and will continue for the remainder of 2020 unless later proven unnecessary.

Unemployment continues to rise as the pandemic sweeps across the world, and the CARES Act expanded these benefits to allow for more citizens to qualify. Also, the payments were increased to $600 per week on top of the already-allocated funds for those filed as unemployed (Snell 2020). These payments were also expanded for the next four months. This expanded aid and qualifications are beneficial to Americans, especially since unemployment has reached over twenty million people (Schwartz 2020). In Stimulus Phase IV, these benefits will continue to sustain jobless Americans, and these benefits will be extended if necessary. However, essential workers are currently working endlessly during this uncertain time. Healthcare workers on the front lines battle the pandemic every day, and the food industry workers continue to provide for the American people (Collins and Hayes 2020). In the Stimulus Phase IV package, healthcare workers and all essential workers such as sanitation janitors, delivery persons, postal workers as well as teachers will receive increased wages during this crisis. All healthcare workers will receive $3,500 monthly checks until the end of the year. This will retain healthcare workers and provide a substantial hazard pay. All other essential workers will receive a double amount of the $1,200 stimulus checks. If these workers already receive this initial amount based on their income, they will also receive another $1,200. Essentially, in the Stimulus Phase IV package, all essential workers will receive monthly checks for $2,400 for the remainder of the year.

Furthermore, specific groups of individuals were looked over in the previous aid packages. These groups such as nursing home residents and SNAP recipients require more assistance during this pandemic. Also, certain low-income families need broadband and technology aid, especially if they have children in school. Nursing homes across the country are being hit hard by the pandemic. A fifth of the COVID-19 deaths are attributed to nursing homes, and along with the immense number of deaths, the staff is underpaid, and the facilities are underprepared (Stockman et al. 2020). These essential workers will be included in the allotted checks to increase wages. The Stimulus Phase IV package will provide $5 billion to all nursing homes in the United States to aid with prevention, treatment, and postmortem care. This will provide increased supplies and safer facility operations to safely distance the exposed from the non-exposed. Along with these nursing home residents and workers, SNAP recipients also require further assistance in the Stimulus Phase IV package. The Supplemental Nutrition Assistance Program (SNAP) provides a monthly allotted balance to purchase food for millions of Americans (Rosenbaum 2020). These supplements are crucial during this crisis since millions of citizens have lost their jobs and are struggling to pay rent and buy food. The CARES Act provided $15.5 billion to this program; however, more is needed as unemployment increases, and this pandemic continues (Colvin 2020; Snell 2020). In the Stimulus Phase IV package, an additional $10 billion will be allotted to this program to aid American citizens and provide more money in the monthly supplements. Certain low-income families struggling during this crisis are without food security, and the SNAP increase will help this issue, but Americans are struggling to access technology in order to receive COVID-19 updates and information. Also, children in these low-income households lack proper broadband or technology to continue their education (Herb and Fox 2020). The Stimulus Phase IV package will allot $2 million for small internet providers to offer free internet services to low-income families. This will allow for these citizens to access health and safety information and provide secure access to their children’s education.

Another topic that will be addressed in the Stimulus Phase IV package is voting. As November nears, state primaries have grappled with voting procedure decisions. In states like Wisconsin, state leaders chose to hold primary elections despite the pandemic dangers (Parks 2020). Unfortunately, seven people have now been diagnosed with COVID-19 due to the election turnout, and the number could grow (Neely and Silver 2020). However, citizens should not have to choose between their health and safety and their right to vote. As some senators have expressed, elections need to continue to be fair but also safe for American citizens (Herb and Fox 2020). As these issues continue to face American voters, the Stimulus Phase IV package will alleviate these concerns and expand early voting and mail voting. Also, the bill will provide additional voting information, education, and remote registration (Collins and Hayes 2020). An allotment of $3 billion will aid the voting issues and provide a safer way to exercise rights and promote democracy.

American individuals benefitted from the CARES Act; however, due to the continuation of this pandemic, further assistance is required of lawmakers. As constituent representatives, congresspeople must attend to citizens’ needs. With the Stimulus Phase IV aid package, individuals will receive further aid. Stimulus checks will expand to include dreamers, disabled dependents, and college students. As unemployment benefits continue, essential workers will receive increased wages and hazard pay. Specific groups of people like nursing home residents and workers, SNAP recipients, and low-income families will now receive additional aid to provide proper and prepared healthcare, food security, and sufficient technology and information during this crisis. Lastly, the Phase IV package will now ensure voter safety and rights. These additional modes of aid will provide for American citizens during this uncertain period, and as American lawmakers, it is necessary to attend to these needs and pass this bill into action.

The CARES Act also benefitted small businesses, various industries, as well as state and local governments to curb the economic impacts of COVID-19. However, as time continues, the negative economic effects have increased exponentially. Small businesses continue to collapse, certain industries are sinking from the lack of consumer business, and state and federal governments are working tirelessly to restrain the economy from completely shutting down, yet at the same time attempting to manage safety protocols and procedures for their constituents. At this point, these areas, like individuals, require more government assistance. The Stimulus Phase IV is needed now more than ever to save the economy as well as maintain citizen safety. The aid package will include additional aid to small businesses, struggling industries, and ensure the continued work of state and local governments.

Small businesses continue to collapse during this economic crisis, and policy makers continue to point out the dwindling economy; however, many forget that behind these companies and industries are the workers. These workers need to be paid. In the CARES Act, legislators provided $349 billion for the Paycheck Protection Program (PPP) to ensure employee retainment, help pay bills, and forgive loans (Millions of Businesses Expected to Seek Paycheck Protection Program Loans Today 2020). The program was supposed to last until June 30, but Senator Marco Rubio correctly predicted that the PPP allotment would run out before that date (D’Souza 2020). This left small businesses shut out and unable to receive these benefits (Gandel 2020). Therefore, this secondary stimulus package is needed to help these businesses with 500 employees or less. Due to these exhausted allotments, the Stimulus Phase IV will offer additional aid to the PPP to ensure American workers receive their paychecks and small businesses stay afloat. The Stimulus Phase IV will repeat the aid of an increased $350 billion to aid this sector at this time, and Congress will choose to repeat this measure in the future if necessary.

The Stimulus Phase IV also seeks to directly aid small businesses in loan repayments and development programs. The CARES Act allotted $17 billion to aid six months of loan payments; however, this also needs to be replenished (Snell 2020). Within the $350 billion allotted to the PPP, the Stimulus Phase IV will provide $25 billion for the Economic Injury Disaster Loan program. This will aid small businesses in repaying some of their heavy loans at this time (Hirsch and Newburger 2020). Along with loan aid, the Stimulus Phase IV will also provide $25 billion to fund business development programs to prevent small business closure. This specific aid is identical to Finland’s stimulus policy. The Finnish government also provided funding to development programs as well as various grants (Government Communications Department 2020). The Small Business Administration will manage this entire $350 billion allotment, including the two payments of $25 billion to loans and development programs. This aid will help small businesses ensure employee wages, repay outrageous loans, and prevent permanent closure.

Along with small business aid, the Stimulus Phase IV will also provide funding for specific industries that are suffering during this pandemic. These industries include the healthcare system, oil, and food sectors. Hospitals are suffering during this time, and even though healthcare workers will receive hazard pay, the health establishments themselves need assistance. Testing also needs to be expanded as states slowly begin to reopen society (Foran, Byrd, and Raju 2020). In the CARES Act, hospitals were funded with $100 billion, but it was divided differently. The Stimulus Phase IV will provide $75 billion to provide ample supplies, resources, and quality care for American patients. The bill will also provide $25 billion to expand testing and decrease the cost of testing (Carney 2020).

Additionally, the Stimulus Phase IV will provide aid for the oil and gas industry due to the damaging economic impacts of COVID-19. Because American citizens are warned to stay at home during this dangerous pandemic, gas pumps have been vacant for weeks, planes are empty, and travel has slowed to a halt. While this may seem to be financially beneficial for American citizens, the oil industry has taken a record hit from lack of business, and this included oil employees. Last week, oil barrel prices dropped below zero, and the national average is less than $2 (Bogage and Heath 2020). Refineries and storage tanks are stocked with massive amounts of crude oil just waiting for consumers to purchase, but no one will because of safety protocols. Therefore, the oil industry workers are losing jobs daily. The Stimulus Phase IV will offer aid to these industries to prevent lay-offs and excess product supply. The U.S. oil companies will cease production until May 15. This will allow the partially reopened states to utilize the oil reserves and prevent company overproduction and waste. Also, the package will provide $20 billion to the crude oil industry to retain employees and prevent complete closure.

The food industry is another suffering sector that requires federal aid. Similar to the oil

industry, the food industry has taken a hit due to stay-at-home protocols. Restaurants and bars have closed, and grocery stores are turning away producers because their shelves cannot stock everything (Martin 2020). Additionally, producers are watching food rot and products flow down the drain because the restaurant industry has slowed down (Cagle 2020). The Stimulus Phase IV will provide similar aid as the oil industry to the struggling agriculture industry. All production will cease until May 15 if applicable. For example, dairy cannot stop production, so it will continue. Therefore, production of certain products will cease if possible. However, the Department of Agriculture will also work with SNAP to provide low-income families with produce, dairy, and meat products. This will help alleviate some of the wasted good amounts. As far as the employee retainment, the Stimulus Phase IV package will provide agricultural companies with $10 billion to prevent layoffs and maintain necessary operations.

The healthcare, oil, and agriculture industries have faced the economic impacts of the pandemic, and the state and local governments have worked tirelessly to decide on safety protocols and find solutions that benefit the American public. In the CARES Act, state and local government programs were funded by $339.8 billion, but this aid needs to be replenished. In the Stimulus Phase IV package, these governments will be aided by two-thirds of this original allotment. This will ensure the governments’ work to make these decisions and manage protocols like expanding state testing during this pandemic crisis. The aid will also retain government employees to continue serving their constituents.

The Stimulus Phase IV package encompasses additional business and government funding to provide immediate and necessary aid to struggling industries and worried employees. This aid package will benefit small businesses through additional allotments for the PPP, development programs, and loan repayments. Also, the package will fund struggling industries like the healthcare, oil, and agriculture sectors. Additionally, it will aid state and federal governments to maintain safety protocols and continue making economic decisions for the American people. The Stimulus Phase IV is more than necessary as individuals, businesses, and state and local governments are struggling to stay afloat during this crisis. The effects of the pandemic sweep broadly across health, economic, and political sectors. With the comprehensive funding provided by the Stimulus Phase IV package, American citizens, businesses, and governments can maintain health and security during this uncertain time.

References

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