What Do Trump's Executive Orders Mean for Me?
It's certainly been an interesting 2020. You thought
I was going to say "unprecedented," didn't you? It was hard to
fathom that the crisis surrounding COVID-19 would last more than a couple of
months, yet here we are in late August with no real end in sight.
The government has stepped in a few times to help Americans deal with the financial impact of the country shutting down for several months. Think of it as temporary pain relief - like getting a shot of Novocain at the dentist. Eventually the relief runs out.
With over 10% of Americans out of work, many are wondering
what additional relief will come now that most of the support measures have
expired. Both Democrats and Republicans have been trying to pass a bill that
would extend many of the benefits given to alleviate COVID-19 impacts, but in
traditional Washington fashion they have yet to come to mutual agreement.
Therefore, President Trump has created executive orders to implement some key actions
and keep the "Novocain" from wearing off. These include:
- $300/week for unemployment with an additional $100 of state aid requested for a total of $400/week.
- Temporarily halt of residential evictions since the previous federal mandate expired on July 24th.
- Extend relief for student loan borrowers through year end. The current rate of student loans was dropped to 0% and previous relief to borrowers ends the end of September.
- Defer payroll taxes for workers earning less than $100,000/year.
These measures will surely help those who continue to feel the effects of the pandemic. What remains unknown is how issuing these large sums of money will impact future generations and our obligation as a nation to keep a balanced budget. It's possible that we could be looking at higher taxes or a reduction of entitlement programs like Social Security or Medicare. Pre-retirement family budgeting and financial forecasting will become even more important should something like that happen. Make sure you are routinely evaluating your monthly cash flow so you are well-prepared for any scenario.