Trump signs orders extending Covid-19 relief, defers payroll tax

Negotiations broke down this week between the White House and top Democrats in Congress over how best to help Americans cope with the heavy human and economic toll of the coronavirus crisis.

President Donald Trump signs executive orders extending coronavirus economic relief during a news conference at his golf club in Bedminster, New Jersey, on August 8, 2020.
AFP

President Donald Trump signs executive orders extending coronavirus economic relief during a news conference at his golf club in Bedminster, New Jersey, on August 8, 2020.

US President Donald Trump has signed executive orders extending economic help to Americans hit by the coronavirus crisis after his Republican party and opposition Democrats failed to agree on a new stimulus package.

"We've had it and we're going to save American jobs and provide relief to the American workers," he said at a press conference in his golf club in Bedminster, New Jersey on Saturday.

With double-digit unemployment, massive disruption to businesses from social distancing rules, and stubbornly high rates of coronavirus infection, many Americans have been relying on relief measures approved earlier by Congress, but which mostly expired in July.

Trump said his decision to circumvent Congress with executive orders would mean relief money getting "rapidly distributed."

One order aims to get $400 a week added to unemployment benefits, while two others offer some protection from evictions and relief for student loans.

A fourth measure – opposed by many Republicans as well as Democrats – orders a freeze in payroll taxes.

READ MORE: US unemployment rates fall, but new shutdowns cause concern

Court challenges

Trump, speaking in the ballroom of his Bedminster, New Jersey golf club with an audience of club members cheering him and laughing at his colourful insults against opponents, said he was also working on new tax cut ideas.

However, his executive orders are likely to face court challenges, since they short-circuit Congress, which has constitutional power over most spending decisions.

Stalemate

Democrats, Republicans and White House negotiators had worked all last week without coming close to a deal on a congressional relief bill.

Democrats pushed for a massive new $3 trillion stimulus package aimed at propping up the economy, repairing the tattered postal system in time for the presidential election, and giving the unemployed an extra $600 a week.

Democrats later announced they could drop the price tag but refused the Republicans' offer of a $1 trillion package.

Trump, who is down in the polls against Democrat Joe Biden, faces broad criticism over his handling of the health and economic responses to the coronavirus pandemic.

READ MORE: US suffers biggest job losses in history amid coronavirus

READ MORE: Trump and US Congress agree on $2 trillion coronavirus rescue bill

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