My tax return was supposed to be here this week but still says it processing. Is the government holding it because of this stimulus package ?

I think if anything the recent national health crisis could be the cause. Covid-19 might be bogging things down a little

After the tax return has been Accepted by the IRS (meaning only that they received the return) it will be in the Processing mode until the tax refund has been approved and then an issue date will be available on the IRS website.

See these links for additional information:

• Tax Season Refund Frequently Asked Questions

• How are my taxes affected by COVID-19?