Insights

Joe Biden unveils massive US$1.9 trillion coronavirus stimulus package

US President-elect Joe Biden has just unveiled a massive US$1.9 trillion coronavirus stimulus package to boost the US economy.
The post Joe Biden unveils massive US$1.9 trillion coronavirus stimulus package appeared first on The Motley Fool Australia. –

Liferaft filled with bundles of cash rescue package

US president-elect Joe Biden has just outlined the details of a major new coronavirus stimulus package in a move likely to comfort investors.

The announcement comes just 5 days before the former vice president is set to take the oath of office and be officially sworn in as president.

Mr Biden made the announcement today. In this, he detailed how the package, reportedly dubbed the ‘American Rescue Plan’ and estimated to cost approximately US$1.9 trillion ($2.45 trillion), will be deployed.

According to reporting in the Australian Financial Review (AFR) today, the package will primarily consist of a new fresh round of stimulus cheques of US$1,400 each. These will supplement the US$600 round of cheques that were sent out just after Christmas.

Those came after President Donald Trump signed a bipartisan relief bill. These new cheques will go to most American families earning under an income threshold.

A new stimulus package for the US economy

The package will also include the following provisions:

  • An unemployment insurance boost of US$400 each
  • A $20 billion boost to the national vaccine program
  • A rise in the federal minimum wage to US$15 per hour, up from the current US$7.25 per hour level
  • Grants and loans for small businesses, estimated to cost US$440 billion
  • Emergency funding for state, local and territorial governments, estimated to cost US$350 billion
  • 14 paid weeks of sick and family leave for caregivers
  • Tax credits for families – reportedly consisting of “up to” US$4,000 for one child, or US$8,000 for 2 or more children

President-elect Biden’s Democratic Party won an unexpected majority in the US Senate earlier this month. It did so by sweeping the 2 US Senate seats of the conservative Southern state of Georgia. It already held control of the House of Representatives under Speaker Nancy Pelosi.

As such, there is more likelihood of most, if not all, of the provisions of this package becoming law than if the Republican Party had maintained its previously-held majority. It was the Republican Senate that denied consideration of the US$2,000 cheques over Christmas to begin with. That was despite the objections of Democrats, as well as President Trump.

The Senate will be equally divided between the 2 parties once the new senators are sworn in. However, under the US constitution, the vice president breaks all senate ties, meaning that the Democrats will be in effective control until at least 2022. It will be interesting to see how the US markets react to this new round of stimulus spending overnight.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Joe Biden unveils massive US$1.9 trillion coronavirus stimulus package appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!