Trump’s move on pandemic relief is legal
Special To The Washington 3ost
Within hours of 3resident 'onald Trump’s announcement Saturday that his administration would provide pandemic-related relief to millions of Americans, lawmakers on both sides of the aisle assailed the move as yet another instance of presidential overreach. +ouse Speaker Nancy 3elosi, '-&alif., and Sen. %en Sasse, 5-Neb. – who don’t agree on much – – settled on the same phrase to describe the president’s actions “unconstitutional slop.”
That’s understandable – but wrong.
Start with the most significant action a memorandum ordering the Federal Emergency Management Agency to approve payments to outof-work Americans. The statute that authorizes this move, the 'isaster Mitigation Act of
, allows the president, in consultation with the governor of each state, to provide financial assistance for “necessary e[penses or serious needs resulting from >a@ maMor disaster.”
The . million Americans now collecting unemployment insurance benefits are facing “serious needs” resulting from the coviddisaster. So the Trump administration’s argument that the statute authorizes cash aid to the unemployed appears a legally permissible interpretation. %ut while Trump claimed Saturday that “we’re all set up” for unemployed Americans to begin receiving per week “without the 'emocrats,” getting this assistance to them won’t be simple.
First, the law reTuires states to bear of cash-assistance costs. So for aid to reach people’s pockets, Trump will need help from governors – of whom, incidentally, are 'emocrats. Not all governors have money available to pay their share, and some may need to reconvene legislatures for emergency sessions. Even if all goes according to plan,
a week is only twothirds what unemployment insurance claimants received in federal aid through -uly. Thirty-one million Americans and their families still will see a sharp income drop this month.
In addition, memo releases only in FEMA funds, with billion left in the bank for other FEMA efforts. If all states take FEMA up on the threefor-one match, the billion will last five weeks. At that point, Trump will have to return to &ongress for cash.
Trump’s other actions are even less effective – though eTually lawful. +e ordered Treasury Secretary Steven Mnuchin to allow employers of workers earning less than around , annually to put off paying the employee payroll ta[es they
Trump’s
billion owe until -anuary . Mnuchin has the authority to do this under the Ta[payer 5elief Act of , which – as amended – allows the treasury secretary to delay ta[ deadlines by up to months in a presidentially declared disaster.
This does nothing to help those without Mobs, and little for those who remain employed. Normally, employers withhold . of every paycheck to cover their employees’ portion of Social Security ta[. The Trump administration, in effect, is saying, “We don’t need to see that money until ne[t year.” %luster aside, though, the president cannot – without &ongress – make Social Security ta[ obligations go away. +e can only postpone them.
Trump promised that if he wins reelection, “I plan to forgive these ta[es and make permanent cuts to the payroll ta[.” That’s a big “if.” +ere’s another Even if Trump is reelected, he’ll be facing a &ongress in which neither party has shown enthusiasm for his payroll ta[-cut ambitions. Employers therefore have every reason to worry that if they stop withholding payroll ta[es now, they’ll face a large bill come -anuary. As a result, many will continue to withhold, which means their workers won’t see the boost in take-home pay that Trump has touted. And if the money goes to workers, employers will owe the I5S come -anuary – or else their employees will be responsible for these ta[es – absent congressional action.
The one other substantive action Trump announced e[tends through the end of the year the current pause on federal student loan payments. Trump also urged agencies to look for ways to address the coming eviction crisis, but offered no concrete steps. Again, there is authority for this The 2mnibus %udget and 5econciliation Act of allows student loan deferral of up to three years for borrowers suffering “economic hardship.” Notably, the statute – like the two other laws authorizing Trump’s e[ecutive actions – was signed by 3resident %ill &linton and backed by thenSen. -oe %iden. The deferral of student loan payments is a useful step for those with federal loans, though it leaves out million borrowers with private loans, who won’t get help without further legislation.
The episode offers a sobering illustration of the limits of presidential power and the imperative of congressional involvement. Even when the president uses the full e[tent of his e[ecutive authority, the relief he can provide without additional funds or authorization from &ongress is restricted. It’s not enough to forestall financial distress for millions of American families for longer than a brief moment.