WASHINGTON, DC – AUGUST 14: US President Donald Trump speaks at a news conference in the … [+]
After several weeks of negotiations, lawmakers in both the House of Representatives and the House of Representatives have largely returned to their home states ahead of the August recession. It is for the most part expected that there will be no move to a next incentive package until they return in September.
However, there were reports that the House may return in the week of August 24 to hold hearings on the state of the United States Postal Service (USPS). The USPS has long been preoccupied with financial issues and with the upcoming elections and its much heavier reliance on postal votes due to the pandemic, it has been the recipient of much attention.
Much of that attention has been on actions by Postmaster General Louis DeJoy, who took office in June. For those who follow the negotiation package negotiation, you can recognize that assistance to the USPS has played a major role in the talks.
The Cares Act authorized the USPS to borrow up to $ 10 billion from the treasury, but Democrats have sought additional help in the next bill. The Heroes Act, passed in May, would have given the USPS a $ 25 billion grant. During negotiations, there were reports that Democrats reduced the amount to $ 10 billion.
This has been a controversial issue for negotiators, as the president has long been opposed to additional support for the Postal Service.
This appears to have changed.
White House now supports USPS as …
Today, on CNN’s ‘State of the Union’, Chief Staff Officer Mark Meadows said the president would sign a limited incentive law in which support for the Postal Service could be placed with a stimulus control, an improved federal unemployment benefit, and an extension of the Paycheck Protection Program:
‘And so, listen, we have a lot of people hurting there. And this voting right is important. If the Democrats feel this is a big issue – and I’ve talked to some of the modern Democrats as well as a few progressives – if this is a big deal, then let’s put it with an incentive check to go to Americans. Let’s let’s – let’s put it with improved unemployment expansion. Let’s put it with small business reform in terms of the PPP and expand that. Let’s get that. Will the president sign that? Yes, he will sign that. And I’m sure … that whether it’s $ 10 billion or $ 25 billion or something in between, we can do that. ”
Is it possible that there could be a limited package that includes additional help for the Postal Service that includes an incentive scheme, unemployment benefits and an extension of the Paycheck Protection Program? According to the White House Chief of Staff, it sounds like at least one site is open to the public.
If this were to happen then what would we look for in the future?
Extended benefits of unemployment
In the Heroes Act, until January 2021, Democrats called for $ 600 a week for enhanced benefits, but Republicans were only willing to offer $ 400 a week in benefits.
First Chamber member Mitch McConnell (R-KY) has said he is ready to support unemployment benefits at $ 600 if the president supports it. House Speaker Nancy Pelosi (D-CA) has said she is open to compromising the $ 600 figure based on the other aspects of the incentive package.
In an attempt to offer help, the president signed an executive order to pay for improved unemployment benefits, but that will likely be a challenge in court.
The two sides appear to be close on the issue of unemployment benefits, so it is possible that they may reach an agreement here in exchange for support to the postal service.
$ 1,200 second incentive check
Fortunately, for the most part, there has been an agreement on the need for another stimulus control, so we roughly know what it looks like.
Democrats: The Heroes Act provides a payment of $ 1,200 per person ($ 2,400 for joint filers) to those earning less than $ 75,000 ($ 150,000 for joint filers) with a 5% phase-out for those earning more as the income limit. The Heroes Act added $ 1,200 for each addict, with a maximum of three.
Republicans: The Heals Act offers the same basic payment as the Heroes Act – $ 1,200 per person ($ 2,400 for joint filers) for those earning less than $ 75,000 ($ 150,000 for joint filers) with a 5% phase-out for those who earn more than the limit. It added 500 for each dependent but no limit on the number of dependencies.
Both accounts structured the payments as an advance on a repayable tax credit.
What comes next?
During the negotiations, the White House tried to find ways to get help in the short term. When the $ 600 federal unemployment benefits expired in July, the White House suggested a series of short-term expansions, but they were all rejected by Democrats on the grounds that they would not do enough for Americans. All this culminated in the executive memorandum signed by the president on 8 August.
Senator Chuck Schumer (D-NY) and Speaker Pelosi have been the main negotiators on the Democratic side and we will have to see if they are open to a limited bill that extends support to the Postal Service while providing unemployment benefits, and more funds for of PPP.
In the same interview on CNN’s ‘State of the Union’, Meadows said that Speaker Pelosi is against piece of legislation, so we need to see if they are ready to make an account of this kind.
