On July 31st, much of the financial support millions of American families have received from the CARES Act will end, cutting off critical funding that has kept families afloat – just as rent comes due.
As COVID cases continue to rise and the economic recovery trudges slowly along, tens of millions of Americans are about to have their safety net pulled out from underneath them at the worst possible moment.
Congress, through inaction, has our country heading right over a cliff.
April/May: 160 million people received a one-time $1,200 payment – the average cost of one month of rent – that has not been renewed.
July 25: a federal ban on evictions in properties financed by federally backed mortgages – more than a quarter of all households – expire. Many statewide orders banning all evictions will expire around the same time.
July 31 (or the 25th or 26th, depending on state calendars): the $600 federal unemployment payments going to roughly 30 million unemployed people every week will end.
Even as the economy begins to slowly re-open, economists are predicting high unemployment well into next year as industries continue to be impacted by the rising number of COVID cases.
Even before the crisis, 40% of Americans couldn’t afford a $400 emergency expense. This crisis has been that emergency month after month for many families who have lost jobs or had hours cut and haven’t been able to keep up with expenses.
While the CARES Act bailed out corporations for years with tax breaks and other assistance, American families were only bailed out for a few months.
Congress must quickly pass additional direct payments and unemployment benefits to keep American families from facing an unprecedented economic crisis.