What Gen Z Needs to Know about the Second Stimulus Package
When an entire summer, fall, and holiday season went by before Congress passed its second stimulus bill, I started to wonder if the American government really cared about its citizens (spoiler alert: it’s debatable).
But alas, our ~great and powerful dictator~, Donald Trump, signed the Consolidated Appropriations Act on December, 27, providing $900 billion in stimulus relief. Naturally, the whopping 5,600-page document was misunderstood by most Americans. Even members of Congress only had a mere 2 hours before the scheduled vote to skim through the lengthy document.
The bill included several add-ons unrelated to the Covid-19 pandemic including funding aid for other countries, sexual-abstinence programs, military expansions, and provisions for race-horse owners. You read that right. As Americans desperately try to keep their families afloat among a pandemic and economic crisis, certain lawmakers saw it fit to promote their questionable agendas. I am just as shocked as you are.
Just in case you didn’t get to read it, here are the top 5 things Gen Z needs to know about the most recent stimulus package.
How did it get passed?
Top House and Senate leaders had been meeting with members of the administration to sort out a deal since early last summer. But talks were at a standstill with the Democratic majority in the House asking for greater benefits, including $2,000 individual direct payments, and Republicans in the Senate refusing. Most notably, Senate Majority Leader Mitch McConnell drove a hard bargain and was unwilling to compromise.
The political forces at play were complicated by the polarized state of Congress and the Georgia runoff election set to happen weeks after the law’s passage. Moderates in the Senate, such as Richard J. Durbin (D-IL) and Lisa Murkowski (R-AK) led the way for the bipartisan legislation. They were driven by a common goal: a Band-Aid solution to get the country through the next few months.
In a last-ditch effort to capture votes, Georgia Republicans began advocating for $2000 checks. Biden won Georgia and polling for the runoff election showed Democrats Jon Ossoff and Raphael Warnock closing in on Republicans Kelly Loeffler and David Perdue. With the Senate now in the hands of Democrats and the law being passed with $600 checks, their attempt was to no avail.
Ultimately, the law's passage came down to timing. As the year 2020 came to a close, unemployment benefits for millions of Americans were set to expire. The government needed to come to an agreement or risk the financial stability of an already struggling economy.
What are the thresholds for individual payments?
Adults who make under $75,000 a year and filed their 2019 tax returns as an individual will receive a $600 payment. Those who are married with a single head of household making $112,000 a year will receive a $600 payment for each spouse. Two income households will have a threshold of $150,000 a year and will also receive a $600 payment for each spouse.
Families meeting these thresholds with dependent children under the age of 17 will also receive a $600 payment for each child. The payments will be deposited into bank accounts or sent by mail as either a check or gift card.
How will this impact businesses and organizations?
This bill will offer relief for small businesses and schools that have been hit hard by the pandemic. $285 billion was set aside for the Paycheck Protection Program, a federal loan that allows small businesses to continue to pay employees. $82 billion has been allocated to education, with $23 billion of it going to colleges and universities. Students will likely have access to some of these funds through their schools. Many universities began a need-based application process to access aid for COVID related concerns. The bill requires colleges to provide at least the same amount of Emergency Cash Grants to students as they did through the 2020 CARES Act.
Additionally, the bill provides funding for access to high-speed internet, the child-care industry, nursing homes, climate resources, vaccines, and food security benefits such as SNAP (Supplemental Nutrition Assistance Program).
What are the unemployment benefits?
Unemployed Americans will receive up to $300 per week until March 14. Freelancers and contract workers will receive an additional $100 per week until March 14. This unemployment insurance deal is half the amount offered in the spring ($600).
What are the rental protections?
Lawmakers have extended the hold on evictions until January 31. Homeowners are protected against foreclosure through February 28th under an order from the Dept. of Housing and Urban Development.
So, what’s the bottom line for Gen Z? Well, it depends on your age and status.
If you are under the age of 17, your parents or guardians will be given an individual payment on your behalf. This will likely be put towards family expenses such as groceries and bills.
If you are over the age of 17 and were categorized as a dependent in 2019, your parents or guardians will not be given an individual payment on your behalf. If you are currently employed and providing for yourself, you may be able to claim yourself as an individual in your 2021 taxes and receive the Recovery Rebate Credit. If you are currently unemployed, you may be eligible for the Unemployment Insurance payments of $300 per week. If you have student loans, this legislation offers incentives for employers to make tax-free loan payments up to $5,250 on their worker’s behalf. Overall, most adult dependents will not be receiving any individual payments from the stimulus.
That is a big problem.
For one, many adults are categorized as dependents for a wide variety of reasons including illness and disability. This group was also not given aid during the first round of stimulus payments in the spring. Just because someone is claimed as a dependent does not mean that they are not negatively and financially impacted by the pandemic.
According to a 2020 poll, 46% of Gen Z adults ages 18-23 are dependent on a parent or guardian for housing costs.This group has wide and varying levels of need. Imagine the 19-year-old, working, and living at home and helping his parents with the bills. Or what about the 22-year-old recent college grad who has been searching for employment in one of the worst job markets in American history? Picture the 18-year-old who recently got kicked out by her parents who claimed her as a dependent in 2019. Unfortunately, a large proportion of Gen Z adults who need assistance will not receive the $600 individual payment.
What comes next?
Experts estimate that things won’t be back to “normal” until 2022. More stimulus packages will need to be passed and Biden has already made clear that he would be in favor of a more comprehensive bill. He has already begun talks of setting aside concerns over the federal deficit in favor of boosting the economy. The Biden administration will likely be pushed by progressive Democrats to enact more comprehensive stimulus packages.
Keep an eye out for proposed legislation and amendments from Progressive Representatives Alexandria Ocasio-Cortez, Ilhan Omar, Ayanna Pressley, Rashida Tlaib, Cori Bush, and Jamaal Bowman.
In future stimulus packages, adult dependents need to be included in individual payments. Federal unemployment assistance should be raised back to the previous $600 per week. The thresholds for individual payments should be increased to include more Americans. And lawmakers should cut the extraneous add-ons that do nothing to improve the lives of everyday people.
But while we wait for Congress to act, there is more to be done. Continue to inform yourself. Call your representatives and demand action.
Gen Z is a powerful force that can be harnessed for good. We are not the future. We are the now.
Other sources:
Millions of students and adult dependents won’t receive a $600 stimulus payment
More Answers To Your Questions About The Second Round Of Stimulus Checks
Some people are already experiencing delays getting their second stimulus payments.
Millennials, Gen Zers say pandemic has derailed their financial independence
“Buckle up”: Democrats signal they’re ready to go on stimulus