On Friday, President Trump signed a massive $2 trillion stimulus bill into law after weeks of intense and bitter arguments, alongside quiet deal-making, over how much to spend, who would get money and what restrictions should be placed on businesses seeking assistance. The impressive legislation attempts to reduce the economic pain caused by widespread shutdowns in the face of the COVID-19 pandemic.
The measure includes a number of beneficial policies, including widely-discussed stimulus checks of up to $1,200 for individuals, which will be sent to most adult taxpayers. The law also suspends evictions, student loan payments and a host of other expenses for several months while many people are staying inside and unable to work.
Despite the tremendous good this law is likely to do for the economy, many college students will see no benefit from the stimulus despite paying taxes, which along with the closure of many universities, including NC State, could cause them serious problems. Any future coronavirus legislation at the federal or state levels should fix the problems the current law leaves for students. Additionally, those students who cannot live on campus anymore should be compensated for extra housing and living expenses, whether by NC State or by a government-funded response.
To understand why the stimulus has a blind spot for working students, we can look at two key restrictions on who gets the benefits. According to the New York Times, single adults making up to $75,000 per year and married couples making up to $150,000 per year will receive $1,200 and $2,400, respectively. These figures are higher for those with children. In addition, families with children under 16 can get $500 extra per child, so college students who still live with their parents do not qualify for this extra stimulus money for children.
On the other hand, college students who are claimed as dependents also get no money, even if they are tax-paying adults. The New York Times article clarifies who counts as a dependent, saying, “Usually, students under age 24 are dependents in the eyes of the taxing authorities if a parent pays for at least half of their expenses.” But students in this situation may still be paying a significant portion of their own expenses, especially if they were relying on a meal plan to get consistent access to food.
Even with this stimulus money and some generous expansions of unemployment insurance, many families will likely struggle to get by on little to no money from their jobs. This law was likely set up to prevent students like me, who are privileged enough to live with parents who can afford our living expenses, from taking money we simply don’t need. But it overlooks people whose families’ financial backgrounds aren’t as stable and who may suffer under the weight of another mouth to feed and an intense internet user to support.
In this time of national hardship, the government shouldn’t be looking for people to exclude from receiving benefits in order to show off how “fiscally responsible” it’s being. This emergency is costing everyone a lot, both financially and personally, and the primary focus for legislators should be making sure as many people as possible get through the crisis intact.
As the federal and state governments continue to figure out how to protect society from the dangers of this virus, they should address the shortcomings of this bill by refunding students’ housing and meal costs, amid other possible fixes. As young adults who often haven’t found our financial footing yet, students deserve a fair shake in any economic recovery.
