Lawmakers are running out of time to approve another coronavirus relief package before Congress adjourns for the holidays. One of the main points of contention is whether any package will include a second round of stimulus checks, direct cash payments that helped millions of households overcome the economic crisis caused by the Coronavirus pandemic.
A $ 908 billion bipartisan proposal initially set aside stimulus payments, focusing on providing unemployed workers with additional weekly unemployment benefits of $ 300. But a last-minute addition to the package could include another round of checks, most likely at $ 600 per person, according to a Dec. 16 research note from Raymond James analysts.
That represents half of the $ 1,200 payments distributed to some 160 million U.S. consumers through the $ 2 trillion Coronavirus Aid, Relief and Security Act (CARES) this spring. Some senators, including Bernie Sanders of Vermont, have insisted that any new relief law will include another round of checks worth $ 1,200 for low- and middle-income Americans. Sanders, joined by Josh Hawley, a Republican senator from Missouri, pledged to force a vote on the proposal before lawmakers adjourned for the year on Dec. 18.
Hawley said Dec. 16 that the potential for a round of checks, even at $ 600 per adult, was a “good move in the right direction.” But, he added, “I think it should be $ 1,200.”
The current negotiations are based on a $ 908 billion proposal from a bipartisan coalition of senators. But because that package included $ 160 billion in fighting aid state and local governments, who opposed Republicans, as well as a shield of responsibility for businesses, which Democrats opposed, the group split the proposal into two bills, basically cutting the controversial issues into a smaller, separate package. which may be discussed at another time.
Instead, the first bill would consist of a $ 748 billion measure, which is expected to include additional funding for the popular Salary Protection and Unemployment Insurance Program, among other programs.
Retaining $ 160 billion in funding for state and local governments may be key to finding support for another round of stimulus payments, Raymond James said.
“The cost of direct payments under the CARES Act was about $ 300 billion; cutting checks in half would reach $ 150 billion,” analysts wrote. “Changing the $ 150 billion in direct payments to the $ 160 billion in state and local aid would create a global bill in the reported $ 900 billion range.”
Unemployment benefits
The $ 748 billion measure would help millions of unemployed workers by adding 16 weeks to unemployment programs that will now expire at the end of December. Pandemic Unemployment Compensation (PUC), which had provided $ 600 a week to unemployed workers until it expired in July, would be renewed with weekly benefits of $ 300. The plan would also extend the federal eviction moratorium one more month until the end of January.
“This package is far from perfect: there are big omissions, including a reduction in the PUC from $ 600 to $ 300 and the paid leave is not continuing,” said Andrew Stettner, an unemployment expert at The Century Foundation, a think tank. of the left. “However, the proposal represents a strong initial payment of assistance for unemployed workers and for the entire economy.”
House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell and other congressional leaders spoke Dec. 15 to discuss the relief package and a broader government spending bill. with Treasury Secretary Steven Mnuchin, according to Pelosi’s spokesman on Twitter.
“President and Secretary Mnuchin spoke on the phone at noon for 1 hour and 7 minutes and discussed the latest news on the talks on COVID and Omni. The secretary will join the Four Corners leadership meeting today at 4 p.m. in the afternoon by telephone, “Pelosi spokesman Drew Hammill wrote. Twitter.
The division of the bill may increase the likelihood of expanding unemployment benefits before the end of the year, Heights Securities said in an investigation note. Analysts said there is an “almost categorical 80% that Congress will enact at least a moderate-sized stimulus ($ 400-750 million) before the end of the week.”
The politically full debate over additional funding is leaving millions of homes hanging in the dark over what help they could receive, if any, over the next few weeks. For many people, the financial situation is shrinking as winter approaches and coronavirus cases reach daily highs.
In late November, more consumers said they felt a financial impact from the COVID-19 crisis, reaching nearly 6 out of 10 people and representing the second consecutive monthly increase in difficulties, according to a TransUnion survey. Employment growth in the United States as well it slowed sharply in November, raising concerns, the economic recovery is losing strength.
“Time Bomb”
Meanwhile, some consumers say they need much more than another single payment of $ 1,200 to help them survive until the coronavirus vaccine becomes more available next year.
“Our [COVID-19] the numbers are higher than ever and the scale of this pandemic is almost limitless, but the aid is not, “restaurant owner Stephanie Bonin told CBS MoneyWatch. She received about $ 2 million. of signatures.
He added: “Whether PPP, if the stimulus checks, one by one they have dried up and nothing else has been put in place.”
On December 26, “it feels like a time bomb,” Bonin added, referring to the date on which unemployment benefits are expected to expire. 12 million unemployed workers. “It’s not enough, either $ 600 or a $ 1,200 check, that’s not enough to meet the need.”
Meanwhile, millions of American families are struggling to pay their bills and layoffs they remain historically high. Among consumers affected by the pandemic, about eight out of ten are concerned about their ability to pay their bills, with half saying they are worried about paying rent or mortgage, according to the TransUnion survey.
“Nearly two out of five affected consumers say they really need a future stimulus check and don’t know how to get out of it,” the credit reporting agency found.