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On August 8, 2020, President Trump took executive action towards the next COVID-19 stimulus package. These executive actions address a moratorium on renter evictions, an extension of unemployment benefits, a payroll tax deferral and extended relief for student loan debt.

While Congress has indicated that it will continue ongoing negotiations regarding another stimulus package, the President signed one executive order and three executive memoranda. It should be noted that there is uncertainty regarding the application of these provisions. In addition, the President’s executive actions may be subject to legal challenge and subsequent legislation. As a result, taking action with respect to these provisions requires careful consideration and professional advice.

The executive order relates to an extension on the moratorium on renter evictions, the previous moratorium ended on July 24, 2020, under the CARES Act.

The executive memoranda are as follows:

• Extension of federal unemployment – the new benefit will be $400 with 25% of it to be paid by the states while the federal government will pay $300.
• Payroll tax deferral – the employee portion of payroll taxes will be deferred for taxpayers earning less than $100,000 annually. This deferral would apply for the period of September 1 – December 31, 2020. The President has asked the Secretary of the Treasury to seek to make the deferral permanent. Section 2302 of the CARES Act already allows employers and self-employed to defer their portion of the Social Security tax through the end of 2020.
• Student loans – the interest on student loans would continue to accrue at 0% interest until December 31, 2020.

It appears that Congress will continue negotiations on the next stimulus package, which is expected to contain the following items:

• IRS stimulus payments
• Extension of the Paycheck Protection Program until December 31, 2020
• Employer tax credits for job retention