Major New Stimulus Package in The Works: Rent Forgiveness and $2K per Month

We all knew that a one-time $1,200 direct payment to the American people wasn’t going to be enough to keep our economy afloat during this global pandemic…especially seeing how a great many Americans are still waiting for that money to even arrive.

That’s why the federal government is cooking up another coronavirus stimulus bill this week, chock full of major relief initiatives aimed at making sure the American economy doesn’t fall behind the rest of the world on account of COVID-19.

The first piece of the puzzle would be more direct payments to the American people:

Representatives Ro Khanna (D-CA) and Tim Ryan (D-OH) introduced the Emergency Money for the People Act. This Act, if passed, would provide additional cash payments to Americans who have been impacted by the COVID-19 pandemic.

The Emergency Money for the People Act would provide a $2,000 monthly payment to every qualifying American over the age of 16 for up to 12 months.

This would include individuals who were left out of the CARES Act, such as some high school and college students and adults with disabilities who were ineligible to receive the stimulus check because they were claimed as a dependent on another tax return.

Furthermore, there is the possibility that the government would subsidize rent and mortage payments for the duration of the crisis.

Representative Ilhan Omar (D-MN) introduced the Rent and Mortgage Cancellation Act. This Act, if approved, would call for a nationwide cancellation of rents and home mortgage payments through the duration of the coronavirus pandemic, or up to one year.

The bill would include:

  • Full rent payment forgiveness for your primary residence
  • Full mortgage payment forgiveness for your primary residence
  • No accumulation of debt for renters or homeowners
  • No negative impact on their credit rating or rental history.
  • It would establish a relief fund for landlords and mortgage holders to cover losses
  • It would create an optional fund to finance the purchase of private rental properties to increase the availability of affordable housing.

Given just how much partisan bickering there was in regard to the first coronavirus relief bill, the American people are likely approaching this good news with a bit of trepidation.