As Congress is headed for an 11-day crunch to agree on a brand new rescue bundle and have it signed by President Trump earlier than a key provision of the $2.2 trillion CARES Act expires—with hundreds of thousands of Americans unemployed and new circumstances of the coronavirus hovering to alarming ranges—right here’s what’s at stake within the subsequent spherical of laws.
Unemployment insurance coverage: The further $600 per week in federal unemployment advantages licensed by the $2.2 trillion CARES Act will run out on the finish of July, and whereas a brand new proposal by Senate Democrats would prolong the advantages till the labor market recovers, Republicans have argued that the additional enhance discourages folks from returning to their jobs.
Back-to-work bonuses: Instead of extra unemployment advantages, some Republican lawmakers—like Sen. Rob Portman of Ohio—favor money bonuses for staff returning to their jobs.
Payroll tax minimize: President Trump has lengthy been a proponent of a payroll tax minimize, which he says would bolster the labor market by boosting Americans’ take-home pay, although consultants say the coverage doesn’t assist the unemployed.
Stimulus checks: President Trump mentioned this week he helps sending one other spherical of direct funds to Americans, as do many Democrats; Republicans—cautious of extra authorities spending—are divided on the difficulty.
Aid to state and native governments: In urging McConnell to restart stimulus negotiations instantly, House Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Chuck Schumer (D-N.Y.) mentioned Monday that state and native governments will wrestle to cowl important providers like colleges—to not point out hovering healthcare prices and main tax income losses—with out extra federal funding.
Small enterprise aid: Both the House and the Senate agreed this week to increase the Paycheck Protection Program till August eight, shopping for Congress time to determine what to do with the $134 billion that hasn’t but been lent and determine on any additional help for small companies.
Liability protections: Senate Majority Leader Mitch McConnell (R-Ky.) has been a fierce advocate for authorized protections for companies that reopen to guard them in opposition to coronavirus-related lawsuits, calling them a “red line” for GOP negotiators again in May.
Tourism tax breaks: The White House has additionally floated tax cuts on home journey to assist prop up the leisure and tourism industries, that are amongst these sectors hit hardest by the pandemic.
Lawmakers have handed 4 main items of rescue laws because the coronavirus pandemic reached the United States. The first two payments shored up federal funding for testing and small enterprise loans, established provisions for paid sick go away and expanded unemployment insurance coverage. Those payments had been adopted by the CARES Act, which clocked in as the most important piece of rescue laws in American historical past with a price ticket of $2.2 trillion. The CARES Act is the regulation that created the Paycheck Protection Program and licensed the IRS to ship out the primary spherical of stimulus checks. It was nearly instantly adopted by one other bundle price practically $500 billion that replenished funding for emergency help for small companies. In May, the Democratic-led House handed the Heroes Act, a sweeping $three trillion stimulus bundle that included every little thing from extra stimulus checks to an extension for the expanded unemployment program to extra assist for states. The Heroes Act has been largely ignored by the Republican-led Senate and is nearly assured to fail in that chamber in its present kind.
GOP Suddenly Expresses Urgency On Stimulus: ‘Congress Needs To Act In July’ (Forbes)
It’s Official: Trump Wants A Second Round Of Stimulus Checks In ‘Larger Numbers’ Than Democrats (Forbes)
With Senate Republicans ‘MIA,’ Pelosi And Schumer Urge McConnell To Restart Stimulus Negotiations Immediately (Forbes)
CARES Act Protections—Including $600 Unemployment Benefits—Expire Next Month. Here’s What Needs To Happen To Avoid More Economic Devastation. (Forbes)