Stimulus Check Update: What’s Covered under Trump’s Executive Actions (And What’s Not Covered)

Stimulus Check Update: What’s Covered under Trump’s Executive Actions (And What’s Not Covered)

August 17, 2020         Written By Heaven Speirs

Last week, Congress was still on the fence about the second stimulus payment. Republicans pushed for the HEALS Act, Democrats pushed for the HEROES Act, and both the House and Senate started their one-month recess. The status stimulus check was left in limbo until President Trump signed four executive actions on August 8th, 2020.

What Trump’s Executive Actions Cover: Unemployment Benefits, Payroll Tax Cuts, and More

On Saturday, August 8, President Trump issued one executive order and three memorandums covering elements of the HEALS and HEROES Acts. These actions include:

  • $400 extra unemployment benefits each week, retroactive to August 1. This is less than the $600 provided by the CARES Act, but it is a compromise between the Democrat and Republican proposals. However, Trump is proposing that the federal government covers $300 per week and that each state covers the remaining $100. This memorandum could be overturned because Trump does not have the legal authority to control federal spending.
  • Payroll tax cuts for the last quarter of 2020. Payroll taxes could be deferred between September 1 and December 31 for individuals who earn less than $100,000 per year, but that money will be owed after the deferment period, without interest. Once again, Congress will need to make the final decision about this matter because the President lacks legal authority.
  • Student loan payment deferral extended to the end of the year. Federal student loan payments are already in deferment under the CARES Act until September 30. Trump’s memorandum extends this deadline to December 31, but it does not cover private student loans.
  • Eviction protection in the hands of the CDC and HHS. This was the only executive order of the bunch, and it was the least actionable. The order does not provide specific eviction protection, even though President Trump said, “We are stopping evictions. We are not letting people be evicted.” Rather, the order gives HHS Secretary Alex Azar and CDC Director Robert Redfield the authority to ban evictions.

What the Executive Actions Don’t Cover: New Stimulus Payments

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Now you’re wondering, “But what about the stimulus checks?” President Trump does not have the ability to demand the Treasury issue stimulus payments. This still needs to be discussed and approved by both houses of Congress. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have discussed the matter during the recess, but the state of the new stimulus checks remains undecided at the moment.

The New Stimulus Payments May Already Be Helping the Economy

Despite the deadlocked state of the economic impact payments, the economy is already seeing an impact from future funding. Forbes reported a 350 point increase in the Dow Jones Industrial Average on Monday, and airlines saw a significant spike in shares after TSA reported the highest travel statistics in the last 5 months. It may be a while before Americans officially receive their second stimulus checks, but investors are gearing up for the months to come.

If you’re tired of waiting for the new stimulus payments, ask for a credit limit increase on your credit card. If you’re in the market for a new credit card, check out our Top Credit Card Offers or use our Credit Card Selection Tool to find the perfect card to fit your needs.

The information contained within this article was accurate as of August 17, 2020. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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About Heaven Speirs

Heaven Speirs is a contributing writer for LowCards.com. She remains up-to-date with the latest developments in the credit card industry and the financial sector as a whole. Heaven has over 10 years of experience in online journalism, the bulk of which has been focused on personal finance. Heaven attended Oklahoma State University, where she discovered her talent for research and content creation. In her spare time, Heaven enjoys painting, playing poker, and spending time with her husband and three dogs.