Congressional negotiators on Thursday were working to agree on a $ 900 billion stimulus package to mitigate the economic devastation from the coronavirus pandemic, including additional help for businesses, $ 300 a week for unemployment and a check of $ 600 for most Americans.
Congressional officials told the AP agency that the agreement has been delayed because the role of the Federal Reserve has yet to be resolved, requests from state and local governments for funds to attend disasters and other issues unrelated to the pandemic , to reconcile.
It will be the first major legislative response since the passage of the CARES law in March, which provided Americans with even more generous unemployment benefits and checks as part of a $ 1.8 trillion package.
Since then, Democrats have repeatedly called for more ambitious federal aid to address the pandemic, while Republicans have focused on reviving the economy so as not to increase government debt, which already stands at $ 27 trillion.
President-elect Joe Biden favors an incentive to correct the economy and provide direct aid to the unemployed and the most vulnerable Americans, even as the bailout that is about to be approved is well below Democrats’ expectations . Biden called this initiative a “significant down payment” and pledged to provide more assistance in the coming year.
“We made some progress this morning,” said house speaker Nancy Pelosi as she entered the Capitol on Thursday morning.
“We’re still close and we’re going to do it,” Republican Senate chief Mitch McConnell had told reporters as he left the Capitol last Wednesday night. At a conference call last Tuesday, leaders of the Republican caucus stressed the importance of reaching an agreement before the second round of Senate elections scheduled for January 5 in Georgia.
Details are still pending confirmation, but lawmakers from both parties said leaders agreed to a total spend of $ 900 billion. , including $ 600 direct payments for most Americans. CARES Act provided for payments of $ 1,200 to each adult and $ 500 to each child.
What types of businesses can benefit from a new economic stimulus package?
The deal would also include a $ 300 weekly federal unemployment benefit that would partially replace the $ 600 weekly benefit that expired mid-year.
And the extension of additional weeks of state unemployment benefits for the long-term unemployed, more than $ 300 billion in business benefits, including a second round of payments to companies in financial distress (known in English as salary protection payment), $ 25 billion for tenants in arrears with their landlords and maintenance, and $ 10 billion for the post office.
Democrats lamented the deal’s cancellation of $ 160 billion in funding for state and local governments that are running into budget deficits as a result of the pandemic.
“It’s disheartening for us,” said Democratic Senator Dick Durbin, whose state of Illinois is facing significant tax troubles.
Funding from the federal government
While both sides negotiated the coronavirus stimulus package, Congress was also preparing to pass another temporary budget exercise to prevent the federal government from shutting down its functions at midnight next Friday due to lack of resources.
Lower house leaders hope to vote on a comprehensive package this Friday, which will include the incentive for COVID, funding of $ 1.4 billion to the federal government, and other issues in line with tax exemptions.
Negotiations intensified on Tuesday after months of stagnation. Before the November 3 election, when Democrats topped the polls, Pelosi was busy getting more aid. Now McConnell is negotiating from a more favorable position thanks to a surprising crackdown by Republican senators.
“The need for fiscal policy is very high right now,” said Jerome Powell, chairman of the Federal Reserve, on Wednesday, referring to the need to increase government spending. “I think it is widely accepted. It is very positive that we can finally get that.”
McConnell managed to convince the Democrats to refrain from soliciting $ 160 billion for state and local governments, while the Republican leader also gave up something he had described as a priority: protecting employers so that their employees don’t get them. could sue if they became infected with the disease. coronavirus in the workplace.
Democrats say they have obtained other benefits for state and local governments with the upcoming agreement, such as funds for public transportation, schools and vaccine distribution.
The addition of $ 600 direct payments to Americans was achieved after statements in favor of President Donald Trump and Democratic Senator Bernie Sanders, a flag of the more liberal wing, who expressed dissatisfaction with the eventual agreement.
“Everything in this package is very necessary,” Sanders told MSNBC on Wednesday. “The problem is that this is a much smaller package than the country needs in this time of economic desperation.”
The pressure to reach an agreement is great. Unemployment benefits for at least 10 million Americans will expire on December 26, many companies are on the verge of collapse after a nine-month pandemic and money is needed to distribute the new vaccines against the coronavirus.
The upcoming deal is based on a $ 908 billion bailout proposal recently filed by Senators Joe Manchin (Democrat) and Susan Collins (Republican).
“I think the work that our two-party group has been doing really contributed to this,” said Collins.
