After weeks of intense negotiations, Congress leaders have finally reached an agreement on a $ 900 billion coronavirus relief package that will include a second round of direct payments, the leader of the US announced on Sunday night. majority in the Senate, Mitch McConnell.
Why it’s important: The eleven-hour deal comes just days before many of the existing coronavirus relief measures expire on Jan. 1.
Game status: Congress plans to attach the final relief agreement to an omnibus bill that must be passed before the holidays. Congress plans to vote on a third continuous resolution Sunday night, which would give them another day to vote on the combined package before the government shuts down.
- This comes after lawmakers already passed two deadlines that threatened a closure.
Details…The package includes:
- $ 600 stimulus checks per adult and child.
- $ 300 a week in improved unemployment insurance for 11 weeks.
- $ 319 billion for small businesses, including $ 284 billion for loans through the Wage Protection Program, $ 20 billion in EIDL grants, and $ 15 billion for live theaters, independent cinemas, and cultural institutions .
- $ 25 billion in rental assistance and an extension of the eviction moratorium.
- $ 13 billion in increased SNAP and child nutrition benefits.
- $ 82 billion in education, with $ 10 billion spent on child care.
- $ 7 billion to increase broadband access.
- Billions for vaccine distribution and COVID-19 testing.
- Language ending surprise billing for emergency and scheduled care.
- A tax credit for employers who offer paid sick leave and extends the tax credit for employee retention.
- $ 4 billion for GAVI, the international vaccine alliance.
Politics: All parties are trying to claim a victory for their party.
- McConnell’s team argues that the bill is very similar to the proposal the Senate Majority Leader introduced in July and that Democrats significantly conceded the price of the package, below $ 2.2 trillion. which they offered and a provision for state and local aid.
- Democrats point out that the bill is still much more expensive than many Republicans had wanted and excludes McConnell’s previous red line: liability protection for businesses. It also expands improved unemployment benefits and includes a new round of stimulus controls, key democratic priorities.
- And the bipartisan group that initiated the final round of talks may signal the success of its bicameral alliance, which was used as a framework for the final agreement.
What to see: Democratic leaders say they see the deal as an “initial” package, allowing Americans until Joe Biden takes office and an additional stimulus can pass.
- But some lawmakers, including progressives, are skeptical, Biden will be able to do so as easily as Democrats project.
The big picture: Millions of Americans and small businesses have suffered severe economic hardship as Congress did not approve another tranche of aid funding for eight months.
- Initial weekly unemployment claims rose to 885,000 last week, another increase from the previous week and a total higher than projected by economists ’800,000 claims, according to data released by the Department of Labor.
- The U.S. poverty rate jumped to 11.7% in November, an increase of 2.4 percentage points since June, the largest jump in a single year since the government began track poverty 60 years ago, according to the Washington Post.
- About 12 million tenants will owe an average of $ 5,850 in rent and utilities in January for WaPo, proving that people are running out of money for basic needs.
- As many cut spending after losing the $ 600 weekly boost to federal government unemployment checks, retail sales fell 1.1% in November, the biggest drop in seven months, for AP.
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