WASHINGTON, DC – JUNE 30: Senate Majority Leader Mitch McConnell (R-KY) speaks during a press … [+]
CNN reported that in a conference call on Friday, Senate minority leader Chuck Schumer said Democrats “have had no contact” with Senate Republicans or the Trump administration regarding the upcoming stimulus bill.
Senate Leader Mitch McConnell is expected to introduce a bill next week and will need the support of Democrats, both in the Senate and in the House of Representatives, if he hopes to become law.
It is surprising that neither McConnell nor the Trump Administration have attempted to meet with Democrats on the bill, especially given that McConnell and Treasury Secretary Mnuchin have been working on the bill for “the past few weeks.” .
There are several key points of discussion in the upcoming bill regarding financial support for Americans:
Stimulus checks
This is the biggest stimulus, as it relates to ordinary Americans, and our only information is that McConnell wants more specific stimulus controls, potentially only for those earning less than $ 40,000.
The House of Representatives passed the Heroes Act which gave $ 1,200 stimulus checks to all Americans who earned less than $ 75,000, with a 5% phasing out for those who earned more. He also added $ 1,200 for each dependent up to a total of three.
It’s unclear what McConnell’s current position is when it comes to the size and scope of the next stimulus check, but we know President Trump wants one. A very generous one.
It is widely believed that the next bill will include it, but it remains to be seen how generous it will be.
Unemployment benefits
Many Republicans are not fans of the $ 600 federal unemployment benefit due July 31. It is seen as a disincentive to returning to work, and data from the National Bureau of Economic Research has shown that two-thirds of the laid-off workers were raising more than they would have earned from their standard wages.
In the Heroes Act, Democrats extended the benefit until January 2021, but Mnuchin went out and said he would like to see limited benefits on the worker’s regular weekly income.
Benefits may be extended, but as a smaller amount, potentially linked to a worker’s previous earnings.
Additional aid to states
This is a great point of discussion between the two parties that can have indirect effects on Americans. Democrats want to send extra help to states, and they did so in the Heroes Act, but Republicans are concerned about the price.
This affects Americans because those funds are used to pay deficits due, among other things, to state closings. This has a direct impact on services and, in some situations, the local government issued stimulus controls.
Dangerous payment
The Heroes Act included paying risks for essential workers that would equate to a $ 13 an hour wage increase dating back to January.
We have seen no indication that Republicans are for or against this idea, although Senator Mitt Romney, in May, proposed Patriot Pay that would add a $ 12-an-hour bonus.
Risk payment may be included on the next invoice, potentially with a small limit or without retroactive application.
Employer responsibility shield
This does not directly affect Americans’ pockets, but it could be a major point of debate in the next bill.
McConnell proposed a five-year liability shield for schools, businesses, and hospitals to protect them from Covid-19 related lawsuits, from December 2019 to December 2024. It is something that McConnell has indicated is “must” on the next bill. .
Democrats have criticized the idea, but are still waiting to hear more, but this could be a big problem. A liability shield like this would protect employers from Covid-19 related lawsuits, except those involving gross negligence and intentional misconduct.
For example, depending on how it is written, employers may not be responsible if there is an outbreak at a facility as long as they take reasonable precautions.
What if they can’t reach an agreement?
The Senate will return on July 20 and work until August 7. The House of Representatives has its last day of work scheduled for July 31. Neither camera is scheduled to return until September 8.
That is only ten business days.
House Speaker Nancy Pelosi said she would delay or cancel the August House recess to pass a stimulus bill, but Senate Leader McConnell has not yet said he will push for the same.
This means that they have until August 7 to reach an agreement. If the Senate takes its regular recess, it’s only fifteen days.
If they can’t, and McConnell doesn’t delay the Senate recess, then the two houses will back down and meet again in early September.
With unemployment benefits due July 31, there is little time to negotiate and many won’t be able to wait until September for a resolution.
Additional resources
The income limit on the second stimulus check is likely to be over $ 40,000
The next stimulus project will likely have these three main changes
Second-stimulus controls must be recurring and direct, 156 leading economists urge
The next $ 600 federal unemployment benefit is likely to be smaller
Second stimulus check update: here is everything we know now
Where’s my tax refund? Why it can be late and when to expect it
