Trump signs executive orders affecting unemployment, payroll taxes, evictions, and loans

On Saturday, President Donald Trump signed multiple executive orders intended to address the COVID-19 pandemic in the absence of congressional action on a fourth federal relief bill. The four orders cover enhanced unemployment benefits, evictions, payroll taxes, and student loans.

 

 

The unemployment order would provide an enhanced federal unemployment benefit of $400 per week, which is $200 less than the benefit that expired more than a week ago. However, there are significant concerns about whether this new benefit will ever reach many of the nation's unemployed workers as it is contingent upon states agreeing to assume responsibility for 25% of the cost and developing new mechanisms for delivering the benefits.

 

A separate order delays the due date for federal payroll taxes until the end of the year. The Trump administration has advocated the reduction of the payroll tax for some time, but the policy has not been seriously considered by Congress as a response to the ongoing pandemic as it will not assist unemployed workers and would have negative effects on critical social safety net programs such as Social Security and Medicare. Despite the president's deferral of the taxes, the full amount will still be due at the end of 2020 without congressional action forgiving the obligation.

 

The executive order on evictions does not prohibit evictions or provide any new funds to assist people with housing costs. Instead, it directs various federal department secretaries to identify potential sources of funding as well as to take action temporarily halting evictions if such action is needed to prevent the spread of COVID-19.

 

The final order signed by President Trump over the weekend extends the deferral of student loan payments and interest provided under the CARES Act through the end of the year. That policy was set to expire at the end of September.