US lawmakers spent the weekend negotiating over an economic stimulus.
To bill that may wrap a $1+ trillion gauze pad over an economy that’s bleeding profusely, Congressional lawmakers raced over the weekend to pass an economic stimulus bill for pandemic victims, this, in an effort to ward off a severe economic downturn in the US.
Republicans and Democrats work together to send money directly to Americans, but the House introduced its own bill that could delay the process to finalize legislation. Ultimately, the fate of the final proposal — and in turn, the American economy — is up to Congress.
According to the LA Times, both parties agreed on the urgency of passing a measure quickly as unemployment rapidly mounts and jittery markets prepared to reopen Monday, but the two sides remained at loggerheads on several key issues, including how much money to provide state and local governments faced with the crisis and how much authority to give administration officials to decide which major businesses to bail out.
It would be by far the largest such measure in U.S. history, equivalent to roughly half the current federal budget. Small businesses, workers stuck without incomes, and high-powered traders are all watching the details of this package closely. How it develops over the next few days will chart the U.S. economy’s path forward.
According to the daily Morning Brew Newsletter, these are the key points:
- Corporate infusions. Democrats reportedly balked at $500 billion earmarked for corporations, including $58 billion just for airlines. They called it a “slush fund” because the Treasury Department would determine who received support. And…Dems also thought the bill didn’t do enough to restrict companies that received federal aid from buying back stock. President Trump agrees with that.
- Exec knuckle raps. The bill would have imposed executive pay caps that lasted two years, which wasn’t long enough for the c-suite hawks.
- Jobless aid. Republicans offered three months of unemployment insurance—not long enough for Dems, who want to spend $250 billion expanding that safety net.
- Healthcare. Pelosi and Senate Minority Leader Chuck Schumer are advocating for an additional $200 billion for hospitals and other providers.
- Student debt. Pelosi is reportedly trying to erase $10,000 in loans for anyone with federal student debt.
- Loans for small businesses. The bill included $350 billion in small business loans that would be forgiven as long as the firms used them to retain staff. While that’s pretty popular, Democrats objected because certain nonprofits would not be eligible.
