A $1.9 trillion stimulus package just passed. How to use the aid money

Many people’s budgets look vastly different during Covid.

Unemployment benefits and direct payments have replaced paychecks in the income ledger.

For many, that aid is still not enough, and food and rent assistance and protections against evictions are also needed to keep families afloat.

Fortunately, much of that relief is now on its way. President Joe Biden signed into law a $1.9 trillion stimulus package on Thursday.

Here’s the support you can expect to see soon, and how experts recommend you get the most out of it.

Unemployment benefits will be extended through September 6, with a $300 federal increase on any state benefit. The average weekly state check is about $324.

Between state benefits and a push, the average laid-off worker will see about 75% of their pay replaced compared to when they were on the job.

Experts recommend budgeting with the amount of your new income. You may have to cut costs to make sure you can keep paying your bills.

If you have cash left over after your basics are covered, move it into a savings account, says Kimberly Palmer, personal finance expert at NerdWallet.

“Many Americans have exhausted their emergency funds during the pandemic, and can now start thinking about replenishing them,” Palmer said.

You’ll be grateful for doing so if you’re still unemployed when benefits end or if an unexpected expense arises.

To get the best return on your cash, keep your money in a high-yield savings account. Also, make sure that the account is FDIC-insured, meaning your deposits up to $250,000 are protected from loss.

Once you’ve got some savings, use the extra money (if any) to pay off high-interest credit card debt, says Kristen Holt, president and CEO of Greenpath Financial Wellness. You don’t want to lose interest payments when your budget is tight.

While it can be as daunting as credit card debt, make sure paying off your debt won’t leave you without any savings.

“We don’t recommend using the cash resources you need to cover your medications and groceries and choosing to pay by credit card, especially as many lenders continue to assist,” Holt said. epidemic. “Contact your bank [or] credit union to determine what assistance is still available and to ensure appropriate terms. “

Experts also say that depending on your credit card in an emergency is very risky as banks can reduce your limit at any time.

The full $1,400 payment will go to those with adjusted gross income up to $75,000 for individuals, $112,500 for the head of household, and $150,000 for married couples filing general profile.

As with previous stimulus checks, payments are reduced for those earning above that threshold and eliminated entirely for individuals earning $80,000, head of household with $120,000. dollars and couples have $160,000.

“Stimulus funds are a disposable cash flow,” Holt said.

As a result, she recommends transferring this money immediately for any essential needs that have already gone into the afterburner, including medicine, groceries, or car repairs. Some people may see payments as soon as this weekend.

Many areas already have existing rental assistance funds, and you will be applying for a new grant through one of these areas. In other cases, new programs will be created to disburse funds.

Emily Benfer, a visiting professor of law at Wake Forest University, says renters should contact local housing groups or their representatives or call their local 211/311 to identify programs. and learn how to sign up.

The National Low Income Housing Coalition also has a database of rental assistance programs.

Included in the most recent stimulus package was $10 billion in cash for homeowners who have failed on their mortgages during the pandemic.

Some things you can put the money into: Your mortgage, utilities, homeowners insurance, or homeowners association fees.

“The legislation also includes a provision where the Treasury Department may identify other acceptable uses,” said Bob Broeksmit, president and CEO of the Mortgage Bankers Association.

The Treasury Department is required to distribute funds to state governments within 45 days. “Each state will then define its own process for borrower applications and distribution of funds,” Broeksmit said.

For rental assistance, you should contact local housing groups or your representative or dial your local 211/311 line to locate programs and learn how to apply for money.

Benefits under SNAP, or the Supplemental Nutritional Assistance Program, can help you pay your grocery bill and allow you to use other stimulus payments for other pressing expenses.

Benefits have been increased by 15% for all recipients through September 30.

Under the new regulations, an individual can receive up to $234 a month. A family of four can get as much as $782 through September. In some states, the maximum benefit is even higher. For example, a family of four in Hawaii could receive a monthly benefit of $1,440.

Money will be sent to you each month on an EBT card, which works like a debit card. People usually get their money in less than 30 days, but people with little or no income can get their benefits within a week.

Eligibility rules can be confusing, but you shouldn’t apply them.

Carrie R. Welton, policy director of advocacy group The Hope Center for College, Community and Justice, told CNBC last year many people miss out on benefits because they think they’re ineligible or worried about the benefits. stigma.

“People will bring their own shame into this, but these are taxpayer resources,” Welton said. “This pandemic is not anyone’s fault.”

Have you applied for rental assistance recently? If you are willing to discuss your experience for a story, please email me at annie.nova@nbcuni.com