New York—President Donald Trump on Wednesday announced a $2.5 billion stimulus plan for small business owners, which would be available for tax-free purchases on the website of the Department of Labor, according to a senior administration official.
The administration will also announce new tax credits and other economic measures to help small businesses that are struggling.
The plan will be rolled out through early December, the official said.
The announcement comes at a time of economic uncertainty and fears that Trump’s economic policies will create a new Great Recession.
The economic recovery in recent years has been so sluggish that some economists predict that the government’s long-term jobless recovery could take years longer than originally anticipated.
Trump, a Republican, has vowed to revive the economy and said he would raise taxes on corporations to help pay for his economic stimulus plans.
The $2-billion plan will provide incentives for businesses to expand or expand their businesses and expand their payrolls, the administration official said, declining to be identified because the announcement was private.
The new program would apply to businesses that employ 50 or more workers and that have 50 or fewer workers in a comparable business.
It would also provide incentives to small businesses for hiring additional workers and investing in equipment, the officials said.
Small businesses are one of Trump’s top priorities, but his administration has been struggling to fill more than 800 open jobs at the Department, which has been hit hard by the economy’s slowdown.
The department employs more than 5,000 people, and its vacancies are at their highest level since the Great Recession, according a report by the U.S. Census Bureau released Wednesday.
Trump’s budget plan has also focused on the plight of small businesses.
In January, he proposed an $8 billion stimulus bill to help those businesses, which could generate nearly $2 trillion over 10 years.
The measure also included tax breaks for small employers that invest in new equipment, hire new employees or expand.
In March, the Trump administration also proposed an increase of $1.5 trillion in the tax credit for businesses that increase payrolls by 50 or 500 workers and invest in their payroll and equipment.
The budget plan would also allow businesses to deduct up to $500 million of payroll taxes from employees’ wages.
Trump has promised to help smaller businesses by giving them more incentives and also by creating a new credit for small-business owners who have been hit by the Great Depression.
The Trump administration has long said the stimulus package will be targeted at small businesses, and it said the plan will help them by creating jobs and helping them recover from the economic downturn.