When Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March, most lawmakers and the general public believed the legislation was necessary for a temporary problem.
But now in December, the epidemic is still spinning out of control, and many programs created as part of the CARES Act are expiring at the end of the year. Millions of Americans remain unemployed, and the lifeline is on the verge of being eliminated if Congress and the White House cannot agree on new aid.
Millions lose unemployment benefits
The CARES Act was extraordinarily generous In awarding an additional $ 600 per week for four months On top of regular unemployment benefits – and lenient rules to allow benefits for independent workers and contractors. The endemic $ 600 unemployment compensation program ended in July.
right Now, Nearly 12 million workers face a devastating “slope” On Dec. 26 if Congress takes no action. This includes workers in the Epidemic Unemployment Assistance Program (PUA) and those in the Epidemic Emergency Unemployment Compensation Program (PEUC).
PEUC provides an additional 13 weeks of unemployment benefit after a worker has exhausted state benefits. The tough cut in CARES means that those in the middle of receiving that extra coverage will not be able to continue for the full 13 weeks. These benefits will simply stop.
Other benefits set to expire
While unemployment benefits receive the most attention, there are several other benefits that are due to expire that will affect people in financial hardship:
- Pay off student loan: Since march, Payments have been temporarily stopped by the Ministry of Education, Set the interest rate to 0%, and stop collecting unpaid loans for most federal student loans. This protection is due to expire on December 31.
- Relief from eviction: Order from The CDC protects most American tenants Those who are struggling financially due to the pandemic from evictions for not paying rent. Owners whose family buildings are backed by federal mortgages Also, tenants with financial problems cannot be evicted. These protections will continue until December 31. However, many countries are putting in place stronger evacuation protections, and many will continue until 2021.
- Reducing foreclosure: Federal Housing Administration Foreclosure Relief The single family homes will expire on December 31. If your mortgage payments are stalled, You may be able to extend that period for another six months.
- Withdrawal from early retirement: The CARES Act authorized those diagnosed with COVID-19 or those struggling financially due to the pandemic Withdrawals of up to $ 100,000 from the conventional IRA, 401 (k), 403 (b) and other certain retirement plans Without paying an early withdrawal penalty. This expires on December 30th.
What can you do?
If you are concerned about losing any benefits under the CARES Act, the first thing you can do is contact your representatives and senators of Congress. You have the right to tell them how you feel.
The next thing you should do, whether you need an eviction or foreclosure waiver, student loan benefit, or unemployment benefits you are entitled to, is talk to an attorney about your options. Even if additional unemployment benefits expire, for example, there may be other ways to use the legal system to address financial problems.