Jim Cramer Calls Trump Executive Order's Approach to States a 'Shame'
President Donald Trump issued executive orders, which included continued payments of up to $400 a week of supplemental federal unemployment benefits and a payroll tax deferral, right as Democrats and Republicans in Congress failed to bridge significant gaps in their stimulus negotiations and as the U.S. topped five million cases of coronavirus over the weekend.
The orders included the aforementioned unemployment benefit. Specifically, it provides $400 per week in enhanced unemployment benefits, less than the $600 per week previously offered. Additionally, states are being asked to cover 25% of the benefit, or $100, and many states have said they cannot afford to do so.
In his daily interview with TheStreet, Jim Cramer called the request to states a "shame."
Trump also signed an action for a payroll tax holiday which will "defer certain payroll tax obligations with respect to the American workers most in need," according to the White House. The order defers the withholding of Social Security payroll taxes.
And finally, he signed two more, one on housing, and another on student-loan payments. On evictions, Trump called on the Treasury and Housing and Urban Development departments to give financial assistance to struggling renters and homeowners, however, the executive orders did not reauthorize the eviction moratorium of the Cares Act. On student loan payments, Trump extended zero-interest loans through the end of the virus crisis.
Treasury Secretary Steven Mnuchin told CNBC on Monday that the Trump administration was open to resuming coronavirus aid talks with Democratic leaders and would offer more aid money to try to reach a compromise.
House Speaker Nancy Pelosi said Sunday it was essential a deal be reached between Democrats and the White House.
"Right now, we need to come to an agreement," Pelosi said. "We could talk about how long our provisions would be in effect, so we can take things down - instead of the end of September of next year, a shorter period of time - and we'll revisit all of it next year anyway."
Pelosi dismissed Trump's executive orders as "illusions."
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