TOPLINE
Experts agree that Trump’s executive actions over the weekend – large parts of which are not yet in motion – will not be nearly as effective in backing the sick economy as congressional legislation, but in negotiations between Democratic lawmakers and the Whites. Chamber over the course of the next incentive bill has apparently come to a standstill, leaving the fate of many key benefits – including that second incentive check of $ 1200 – in the air.
Speaker of the Second Chamber Rep. Nancy Pelosi (D-CA) and Senate Senate Leader Chuck Schumer (D-NY).
KEY FACTS
PIMCO head of public policy Libby Cantrill told Bloomberg on Wednesday that although a deal is unlikely to come this week, the “framework for a deal is there”, which means that despite major agreements between top Democrats and the White House, there have also been some points of consensus. Secretary Steven Mnuchin sparked that sentiment Wednesday about FOX Business Networks In the morning May Maria, saying that negotiators had agreed “on money for schools, money for childcare, money for small businesses, [and] second payments on the PPP for companies that have been particularly hard hit. ”
But Second Chamber member Nancy Pelosi (D-Calif.) Is quicker to point out the big wave that remains between the two parties (a $ 1 trillion dollar demanded by Democrats for more state and local aid) and said negotiators remain “miles apart” in an interview on MSNBC.
In a joint statement with Speaker Pelosi on Wednesday, First Chamber minority leader Chuck Schumer (DN.Y.) said Democrats were ready to compromise, while the White House refused to adjust its position to the size and scope of the bill. .
In the long run, Trump’s executive actions – regarding unemployment insurance, protection of evictions, payroll taxes and student loans – are “limited in terms of what they can actually do for the economy,” Cantrill notes – that is because the president does not have the power to authorize new federal spending – only Congress can do that.
Any additional significant relief measures (such as state and local aid, such as incentive controls) that could be critical to the November election for both Trump and vulnerable Republican senators should be passed by Congress.
Plus, not all of these executive actions will have a direct impact: unemployment systems will take time to adjust, if states decide to participate, and it could be complicated for employers to readjust their tax system to meet the new delays. to satisfy tax service.
What to see
One potential watershed to look out for comes at the end of next month, when the government’s fiscal year ends. Congress still needs money for large parts of the federal government for next year, and it is possible that some incentive priorities will re-emerge before the deadline if no deal can be reached before then.
Crucial quote
It is also possible that President Trump’s executive action on Saturday was more reflective of Trump’s political priorities during his reelection campaign than it was of his policy goals. “The White House felt that if it gave executive orders that did some of the things that were needed, or that responded to some of the most pressing issues, then politics would be off the hook,” he says. Michael Graetz, a professor at Columbia Law School and co-author of The wolf at the door: the threat of economic insecurity and how to combat it. “That’s all the White House has done. ‘
Key background
Top officials of the Trump administration – White House Chief of Staff Mark Meadows and Treasury Secretary Steven Mnuchin – have been in talks with top Democrats for days – Second Chamber member Nancy Pelosi (D-Calif.) And House Minority Leader Chuck Schumer (DN.Y.) – for days in an attempt to reach common ground on what the next round of federal coronavirus relief should look like, but a self-imposed deadline came and went on Friday without a single deal. The biggest problem that could not be solved was the price tag: Republicans have insisted that the new bill should not be $ 1 trillion more, while Democrats have asked for a package (and passed it in the House) that is three times as big . Democrats said they offered in the middle, but no agreement was reached. The next day, President Trump signed the four executive actions (one order and three memoranda). Monday morning, he sent out a tweet stating that Democrats suddenly “want to.”[ed] meet to make a deal … they know my phone number! “Despite the tweet, there have been no meetings between Democrats and the White House this week.
Continue reading
Mnuchin says White House wants to ‘put more money on the table’ for next incentive bill (Forbes)
Here’s why that $ 400 unemployment check from Trump’s executive order cannot happen (Forbes)
Not one state has said it will pay another $ 100 a week in unemployment under Trump’s plan (Forbes)
