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Stimulus bill negotiations continue: What we know about stand-alone checks and airline aid

The clock is operating for Congress to succeed in a deal earlier than breaking for the election.


Sarah Tew/PJDM

Can the White Home and Congress discover a path to extra stimulus assist earlier than the top of 2020? President Donald Trump — who is currently being treated for COVID-19 — called off negotiations Tuesday for a comprehensive stimulus package after which shortly urged Congress to show its consideration to stand-alone rescue payments for airline bailout assist, small companies and a second stimulus check for $1,200. On Fox Enterprise Thursday morning, the president mentioned he’s negotiating “a bigger deal” than simply the airline bundle and that talks are “very productive.”

With first-time unemployment claims over 800,000 once more final week, the necessity for extra help for People and corporations struggling by way of the coronavirus-induced recession remains acute. Economists throughout the nation, together with Federal Reserve Chair Jerome Powell, have warned of dire consequences to financial restoration and livelihoods if no aid arrives — or not enough.

“Properly, it is arduous to see any clear sane path in something that [Trump] is doing. However the reality is that he noticed the political draw back of his assertion of strolling away from the negotiations,” House Speaker Nancy Pelosi mentioned Wednesday. “All he has ever wished in negotiation was to ship out a verify along with his identify printed on it. Neglect in regards to the virus.” Pelosi and Treasury Secretary Steven Mnuchin proceed to talk about a stand-alone bill to assist the airline industry.

Whereas Pelosi rejects a stand-alone stimulus check invoice without a commitment to a broader bill, even when it would not occur “on the similar second” as stand-alone laws. Sen. Lindsey Graham, a Republican from South Carolina, has additionally called to return to a larger stimulus bill: “Strongly advocate all my colleagues and President @realdonaldTrump have a look at the Home Drawback-Solvers bipartisan $1.5 trillion stimulus aid bundle. It has many good issues for people and companies,” he tweeted Wednesday.

Why did Trump name off the larger stimulus bundle and what is the revised timeline for a brand new invoice to go? We’ll share what we all know in regards to the out of the blue tenuous way forward for negotiations and can replace this story usually as information develops.

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Why did Trump pause stimulus talks?

Earlier this week, Pelosi mentioned negotiators would attain a deal on a complete bundle “one way or another,” regardless of sticking factors. So why did Trump pull the plug?

With Election Day 26 days away, the reasoning Trump shared included his perception {that a} deal on a stimulus bundle would not be reached and that he wished the Senate to show its consideration to the nomination of Supreme Court associate justice nominee Amy Coney Barrett, the president’s decide. It has been recommended Trump and fellow high-ranking Republicans who tested positive for COVID-19 acquired the coronavirus on Barrett’s nomination day, at occasions the place masks sporting was not common. 

The Senate, which paused in-person flooring votes till Oct. 19 after three Republicans tested positive with COVID-19, is already transferring ahead on Barrett’s nomination in committee conferences, which might happen remotely. Previous to Trump’s tweets, Senate Majority Chief Mitch McConnell had mentioned his chamber would reconvene to vote on a stimulus bundle if a deal was made.

And a tweet from Trump early Tuesday expressed a want for extra assist clearly: “When, instantly after I win, we’ll go a significant Stimulus Invoice that focuses on hardworking People and Small Enterprise,” he tweeted.

On Thursday, nonetheless, in an interview on Fox Business, Trump mentioned, “We’re beginning to have very productive talks” on extra fiscal assist, particularly pointing to airline help and $1,200 stimulus checks.

When might a brand new coronavirus aid invoice go if nothing occurs previous to Nov. 3? 

Pelosi said Tuesday evening that Congress might decide up the thread on one other financial rescue bundle following the election. Trump, nonetheless, is urging motion now. We have recommended 5 attainable dates, primarily based on the brand new timeline, each earlier than and after the November election. These are speculative solely. Within the case of a second stimulus verify, here is how quickly we think the IRS could send one.

When might a stand-alone stimulus invoice or bundle go?

Home votes Senate votes President indicators
Oct. 19 Oct. 20 Oct. 21
Nov. 9 Nov. 10 Nov. 11
Nov. 16 Nov. 17 Nov. 18
Nov. 23 Nov. 24 Nov. 25
Feb. 1, 2021 Feb. 2, 2021 Feb. 3, 2021

Did not the Home not too long ago go a brand new stimulus invoice? What is the story?

On Oct. 1, the Home of Representatives handed a revised Heroes Act that features a second stimulus check and additional benefits resembling enhanced unemployment benefits for tens of thousands and thousands of People. The brand new Home invoice, endorsed primarily by Democrats, has little likelihood of advancing by way of the Republican-controlled Senate, although.

In keeping with Pelosi, the vote on the revised Heroes invoice was unbiased of ongoing negotiations with Mnuchin. If Pelosi and Mnuchin do agree on a brand new proposal, a brand new invoice would have to be individually drafted and voted on in each the Home and Senate earlier than being signed into legislation. The overall value of the bundle and funding allocations like a baby tax credit score have remained chief sticking factors.

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Will America go a brand new stimulus invoice? Either side agree extra assist is critical.


Angela Lang/PJDM

Why did the Home go Heroes 2.zero if talks have been persevering with?

The vote is believed to supply cowl for Home Democrats as they marketing campaign with out a new aid invoice, a lot because the Senate did earlier in September for Republican members with its $650 billion skinny bill. Like the thin Senate invoice, this new Home proposal has little likelihood of advancing within the different chamber.

The place do Democrats and Republicans agree?

Proposals from both sides include one other stimulus payment of up to $1,200 for people who meet the requirements, amongst subjects like assist for airways, coronavirus testing and lengthening the Paycheck Safety Program for companies.

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Democrats and Republicans have disagreed on how a lot aid assist needs to be included within the stimulus bundle. 


Sarah Tew/PJDM

With talks halted, might the president take govt motion?

After talks initially collapsed on Aug. 7, Trump signed an executive order and three memoranda the next day. It is attainable extra govt actions could possibly be forthcoming if this ultimate try at negotiations fails earlier than the election, although there’s been no improvement after Trump first recommended his administration might consider another executive action to bypass Congress. 

It is unclear if Trump would pursue extra unilateral motion at this level.

Pelosi expressed doubt about Trump’s skill to make use of govt orders for added aid funding.

“No. No. He cannot do that by govt order,” she said Oct. 5. “He cannot do the cash with out the Congress of the USA. The ability of the purse begins within the Home.”

Trump’s earlier COVID-19 aid executive actions tackle attempting to slow evictions, extending unemployment benefits to a lesser diploma and deferring payroll taxes till subsequent yr.

So what occurs now?

The scenario continues to be in flux. For now, we wait to see if there are any developments. Something might nonetheless occur. 

For extra info, here is how soon you might get your second stimulus check and what to know in regards to the HEALS, CARES and Heroes stimulus invoice proposals that might assist inform a ultimate bundle.



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Author

Shelby Brown