Trump Signed Four Executive Orders after the Republicans and Democrats Failed to reach Agreement on a New Stimulus Package. But a close read of the Actual Text of Executive Actions he Signed suggests that even if they are deemed Constitutional, they will Not quickly Deliver the Aid Trump Promised.
Here's a Breakdown, with the Many Strings Attached, and what they actually Accomplish:
Unemployment Benefits
Trump described the Memorandum as an Action providing "an additional or extra $400 a week and expanded benefits." But in Reality, the Additional Unemployment Aid is more Complicated than the White House Acknowledged and Experts say it may Not Help a lot of the Unemployed.
Under the previous Unemployment Benefit Passed by Congress, Millions of Americans received an Additional blanket $600 a Week from the Federal Government, which ended on July 31st, on top of their State Unemployment Benefits.
Under Trump's Measure, the Federal Government is requiring States to Pick-Up the Tab for, 25% or $100, Up-To $400 Additional Benefit each Person may be able to receive Weekly in additional Aid. On top of that, a State must Agree to Enter into this Financial Agreement with the Federal Government for any Unemployed Person living there to get Any of the Additional Benefits. If a State says that it does Not have the Funds or does Want to Enter into the Agreement with the Federal Government, the Unemployed Person in that State will Receive Zero Dollars in any Extra Federal Benefits, beside the Normal State Unemployment Insurance Payments.
The Millions of Americans who've filed for Jobless Benefits have Drained several States' Unemployment Benefits Trust Funds. Already, 10 States have Borrowed nearly $20 Billion from the Treasury Department to Cover their Share of Payments, which typically last 26 Weeks. Because Congress has Not Authorized an Extension of Extra Federal Unemployment Assistance, the State will have to Set-Up an entirely New System to Deliver the New Additional Aid.
Building a Brand New Program could take States Months to Accomplish. In order for States to Administer a New Benefit it has to be Authorized by Congress, so they can't use their Administrative Systems to Pay a Benefit that hasn't been Authorized by Congress.
Lastly, according to the Memorandum, an Individual can only Receive this Benefits, Up To the $300 Federal Benefit, if they First Qualifies for $100 in Aid from their State.
Evictions
The Executive Action Signed by Trump does Not Reinstate the Previous Moratorium on Evictions, which Lapsed in July. The Original Ban covered Mortgages which were Backed by Federal Funds. The Nonprofit Urban Institute has estimated that Moratorium Covered just over 12 Million Households.
The New Measure only states that "the Secretary of Health and Human Services and the Director of the CDC shall consider whether any measures temporarily halting residential evictions of any tenants for failure to pay rent are reasonably necessary to "prevent the further spread of COVID-19."
No Money is set Aside to help Homeowners or Renters. The Action calls for the Housing and Urban Development and Treasury Secretaries to Identify "any and all Federal funds to provide temporary financial assistance to renters and homeowners" who are "struggling" to Pay their Mortgages and Rents because of the Coronavirus. It is Unclear based on the Process laid out for Government Agencies how long it would take for Anyone to see Funding from this.
Payroll Tax
The Payroll Tax Measure that Trump Signed does Not actually Reduce the Payroll Taxes. It defers the Due Date for the Portion of those Taxes Paid by Employees, 6.2% for Social Security, and 1.45% for Medicare, through December 31st. It applies to Workers whose Wages are less than $4,000 on a Biweekly Basis, or about $104,000 a year. This is similar to Treasury's Deferring the Federal Income Tax Due Date this year to July 15th, from April 15th.
The Payroll Taxes would still be Due. They would just have been Delayed to the End of the Deferment Period. Companies may Not want to Stop Withholding the Employees' Share of the Taxes from their Paychecks for that Reason and Payroll Processing.
Trump also said that if he's Reelected, he would seek to Forgive the Levy and make Permanent Cuts to the Payroll Taxes. But the Power to Change Tax law Lies with Congress, not the White House and an Idea Rejected by Congress.
Despite Trump's Claims that it's Popular, making Changes to Payroll Taxes has Not Won many Fans on either side of the Political Aisle in part because it wouldn't Help the Unemployed. Also, any Cuts to the Levies could Hurt the Finances of Social Security and Medicare, which are already under Fiscal Pressure. When Lawmakers Temporarily Reduced the Payroll Taxes in 2011, they Reimbursed Social Security's Trust Fund out of General Revenue.
Student Loans
Trump's Directive regarding Student Loans seems to be the One Executive Action of the Four that will Deliver the Results as the Administration said. This is the Only Area of the Four which doesn't Need Funding from Congress, State Governments, or the Private Sector to Fully Implement.
The Memorandum directs the Education Department to Extend the Student Loan Relief Granted in the CARES Act until the End of the year. Currently, Loan Payments are Paused and Interest is Suspended on Federally-held Student Loans until September 30th.
Democrats have Pushed for Extending the Relief for Another year and making Private Student Loans Eligible.
In March, Trump Waived Student Loan Interest by Executive Order and the Administration said Borrowers could Request a Deferment on their Payments. Congress later Codified that Policy into Law and took it a Step Further by Automatically Suspending Monthly Payments.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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