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US President Donald Trump signed a $ 2.3 trillion pandemic aid and spending package law, restoring unemployment benefits to millions of Americans and preventing a federal government shutdown in a crisis that he himself provoked.
Trump, who leaves office on January 20 after losing the November election to President-elect Joe Biden, backed down on his threat to block the bill, which was approved by Congress last week, after it he came under intense pressure from politicians on both sides.
The Republican president, who played golf and stayed out of the public eye even as the possible government crisis loomed, had demanded that Congress change the bill to increase the size of stimulus checks for struggling Americans to $ 2,000 out of $ 600.
It was not immediately clear why Trump changed his mind when his resistance to the massive legislative package promised a chaotic final stretch of his presidency.
White House officials have been quiet about Trump’s thinking, but a source familiar with the situation said some aides had urged him to give in because they saw no point in refusing.
“Good news on the Covid Relief Bill. Information to watch!” Trump said in a cryptic message on Twitter last night. But he offered no explanation.
Good news on the Covid Relief Bill. Information to follow!
– Donald J. Trump (@realDonaldTrump) December 27, 2020
Democrats agree to the $ 2,000 payments, but many Republicans have objected in the past.
Many economists agree that financial aid in the bill should be higher to get the economy moving again, but say immediate support is still urgently needed for Americans affected by the coronavirus lockdowns.
Unemployment benefits paid to some 14 million people through pandemic programs expired on Saturday, but will restart now that Trump has signed the bill.
The package includes $ 1.4 trillion in spending to fund government agencies.
Had Trump not signed the legislation, it would have started a partial government shutdown on Tuesday that would have put the incomes of millions of government workers at risk.
Global stock prices rose in response to news that Trump had approved the stimulus plan and pulled out of a possible government shutdown.
Read more: Latest coronavirus stories
Futures for the US S&P and Japan’s Nikkei index rose about 0.4% and spot gold prices rose almost 1%.
“It’s good for the markets that we no longer have stimulus chaos, considering there was the possibility of a partial government shutdown,” said Masahiro Ichikawa, chief strategist at Sumimoto Mitsui DS Asset Management.
Trump’s abrupt decision to sign the bill came after a majority of Republican lawmakers refused to back his call for changes to the legislation they had already voted on.
Hours earlier, Republican Sen. Pat Toomey of Pennsylvania told Fox News Sunday that Trump wants to “be remembered for advocating for big checks, but the danger is that he will be remembered for chaos, misery and erratic behavior if he allows this to expire. “.
Trump tried to put the best face on his descent, saying he was signing the bill with “a strong message that makes it clear to Congress that waste needs to be eliminated.”
He noted that the Democratic-controlled House of Representatives planned to vote today to increase coronavirus relief checks to individuals from $ 600 to $ 2,000, and said the Senate will “begin the process” to approve higher payments.
Senate Majority Leader Mitch McConnell, a fellow Republican, said “I thank the president for signing this relief bill,” but did not mention any plans for a Senate vote on higher relief payments.
After months of debate, Republicans and Democrats agreed on the package last weekend, with the support of the White House.
Trump surprised both Republicans and Democrats when he later said he was unhappy with the huge bill, which provides $ 892 billion in financial relief from the coronavirus, despite offering no objections to the terms of the deal before it Congress will pass it today.
Trump spent the Christmas holidays at his Mar-a-Lago resort in Florida.
On Sunday morning, he seemed in no rush to try to resolve the showdown with Congress while playing a round of golf at Trump International Golf Club in West Palm Beach.
He had also complained that the bill gives too much money to special interests, cultural projects and foreign aid.
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