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- As the main budget relief policy expired, cases of the virus in the United States were increasing sharply.
- Congressional $ 2.2 trillion CARES law has been hailed as a major driver of the initial rebound in the U.S. economy.
- But items such as the increase in unemployment benefits expired in July, as cases of the virus in the United States increased and the pace of economic recovery slowed.
- Visit the Business Insider homepage for more stories.
Critical congressional support for unemployed Americans has expired as U.S. coronavirus cases spike in a second wave.
The $ 2.2 trillion CARES law has been widely hailed as having supported struggling small businesses, households and industries during the first months of the pandemic. The package also included essential assistance for unemployed Americans in the form of direct relief payments and a $ 600-per-week extension of unemployment benefits.
The unprecedented amount of budget support fueled a first sharp rebound in economic activity, hiring and consumer spending. Yet improved unemployment benefits ended in July, leaving Americans without jobs with significantly less financial assistance. Businesses were also forced to reopen as emergency relief loans dried up.
And just as the stimulus packages were expiring, a second wave of coronavirus cases emerged in the United States. The economic reopening has put Americans back in quarantine out, and continued hiring has driven the unemployment rate down throughout the summer.
Congress remains stuck in negotiations on a new stimulus bill, but the chances of new support arriving in 2020 are slim. With daily infections reaching record levels day in and day out, the country’s recovery faces its greatest threat to date.
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