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About 20% of Americans report that their children did not eat enough because they could not afford it, according to the latest Census figures. For these families, the next round of stimulus checks may not come soon enough.
However, it seems like controversy over the U.S. Postal Service and Postmaster General Louis DeJoy could end up playing a role in a new incentive package. This morning on CNN, White House Chief of Staff Mark Meadows said the president would be willing to sign a more restrictive incentive letter containing incentives for the USPS, incentive controls, improved unemployment and more PPP loans.
However, this hypothetical deal appears to include no funds for schools to reopen safely, an eviction ban or moratorium, additional funding for cities and states, an extension of COVID-19 tests, or hazardous payments for essential workers. These additional measures were all included in the Democratic-sponsored HEROES Act.
It’s been more than four months since Americans received the first round of $ 1,200 incentive checks and three months since the passage of the HEROES Act by the House of Representatives. Politicians on both sides of the aisle agree that another round of checks is necessary, but negotiations for a new incentive package have failed.
The negotiations have been primarily between Treasury Secretary Steven Mnuchin, Meadows, House Speaker Nancy Pelosi, and First Chamber Member Chuck Schumer. Mnuchin and Meadows are the primary negotiators on behalf of the Trump administration, and by default, the GOP. A bilingual group of seven lawmakers called the “Problem Solvers Caucus” spoke with Meadows Friday to try to negotiate.
Conversations are divided on various issues, with the general size of the bill an important place to talk. Democrats have scrapped their initial proposal size from $ 3.4 trillion to $ 2 trillion, but Mnuchin and Meadows want a bill closer in size to $ 1 trillion. The GOP has also opposed giving extra funding to local and state governments, which Democrats believe is a critical component of an incentive package.
The executive action of President Trump calling for the reduction of the additional benefit of federal unemployment and to expand on part-time state funding for part of the benefit. States have seen their coffers decline as they have had to spend record levels of unemployment benefits, prompting Democrats to say this is a sign that more funding is needed. Democrats also want state funding for extended COVID-19 testing.
Members of Congress left Washington, DC for the recession in August, so the chances of a bill over the next few weeks seem to be lower than many would hope. However, there is still a chance a deal can be reached since congressional staff have indicated they expect to seek Washington this week to explore options for a stimulus bill and the growing concerns about Trump’s management to discuss administration of the USPS.
In addition, widespread USPS service delays have caused Americans to unnecessarily delay the second round of incentive checks – if approved. With millions of families at risk of eviction, a delay of several days could mean losing their homes.
The First Chamber is scheduled to return to session on 8 September and the Second Chamber on 14 September. Legislators have said they are ready to call Senators and Representatives back to the Capitol before the end of the recession if a vote is needed for an incentive package. The first step is that the negotiators – in principle – agree on a deal that they think can win bipartisan support.
The spread of the novel coronavirus continues to surprise the country as the domestic death toll rises to 170,000, and millions suffer economically. The economic response to the pandemic resulted in record levels of unemployment and a record decline in GDP in the second quarter of 32.9%. More than 16 million Americans are unemployed, and more than 30 million collect some form of unemployment benefits.
If the pandemic continues, Americans will still suffer financially, and millions will run the risk of extinction. The purpose of incentive checks is to stimulate the economy, but for many, the payments can mean the difference between being able to feed their children or not.
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