Congress will leave over the weekend without reaching an agreement to extend the improved federal unemployment benefits, leaving tens of millions of Americans unaided.
The impasse could not have come at a worse time. Unemployment claims are starting to rise again, and the U.S. economy has just experienced its worst quarterly contraction on record. And there is no end in sight for the coronavirus, which has so far claimed 150,000 American lives.
The Trump administration remains at a standstill with members of its own party and the Democratic leadership on increased federal unemployment benefits. The March CARES Act provided an additional weekly benefit of $ 600 that will expire on Friday. Democrats are pushing for the full $ 600 to come next year.
Meanwhile, Republicans argue that benefits provide a disincentive to work, and instead want to see a temporary fixed payment of $ 200 until states can adjust their systems to offer a 70 percent wage replacement.
The White House released a temporary extension to the enhanced benefits on Wednesday, but Democrats and Republicans show little appetite for that idea.
Senate Majority Leader Mitch McConnell (R-Ky.) Accused President Nancy Pelosi (D-Calif.) And Senate Minority Leader Chuck Schumer (DN.Y.) of not wanting to get involved in anything. .
“Both Republicans and Democrats agree that in these extraordinary times it makes sense for the federal government to provide additional historical help in addition to normal unemployment,” McConnell said. “But the president and the Democratic leader say they will not accept anything unless the program pays people more to stay home than to work.”
Schumer countered that negotiating with Republicans in the White House and Senate is like “trying to nail jelly to the wall.” It will attempt to pass the Democrats’ $ 3 billion HEROES Act by unanimous consent around noon Thursday.
“Who is leading the effort on the Republican side,” Schumer asked. “Chief Meadows and Secretary Mnuchin … Leader McConnell has said that Democrats will not get involved. It would remind him if he refuses to enter the room when President Pelosi, Secretary Mnuchin, Chief of Staff Meadows, and I sit there. ”
When asked if the Senate would leave over the weekend without a deal on unemployment insurance, McConnell said, “We’re still talking, we hope we can get a result soon.”
In addition to Johnson’s proposal, Sen. Mitt Romney (R-Utah) is expected to come up with an alternative bill that would give states two options for three months: an 80 percent salary replacement or a fixed payment of $ 500. per week, which gradually decrease to $ 400 in September and $ 300 in October.