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Most of the “developments” regarding the recent Stimulus Bill negotiations have not been developments at all.
Constant back-and-forth between key negotiators left the fate of another stimulus package – and more relief for Americans – in limbo. This week, President Donald Trump intervened on the matter, further blurring his own party’s vision for what was to come in terms of relief.
Trump waved the raise pot on Wednesday by throwing his own party for an unexpected loop. In a tweet, he called on Republicans to spend more money on the next stimulus package.
Democrats are “heartless”. They don’t want to give STIMULUS PAYMENTS to people who are in desperate need of money and whose fault is NOT that the plague came from China. Go for the much higher numbers, Republicans, it’s all coming back to the United States anyway (one way or another!).
– Donald J. Trump (@realDonaldTrump) September 16, 2020
Republicans have consistently pushed for a cheaper stimulus package, compared to Democrats’ demands. Trump’s post, via Twitter, appeared to contradict his party’s game plan so far.
Republicans recently cut their $ 1.1 trillion HEAL Take action even smaller, calling it a “lean” bill. Included unemployment benefits, P3 funding, school funding, and liability safeguards, but did not contain funding for a second round of stimulus checks or cash for states that expressed concerns about funding gaps. Last week, the skinny bill was defeated in a procedural vote.
House Speaker Nancy Pelosi (D-Calif.) Maintains her firm position that a $ 2.2 trillion bill is needed to provide an appropriate level of relief from COVID-19.
Trump’s recent tweet could give Democrats the edge in future negotiations.
Will the second stimulus ever occur?
It’s unclear when Congress and the White House could agree on a back-up plan that will become law. But time is running out for lawmakers who must also focus on passing a federal budget to avoid a government shutdown on October 1. The House of Representatives is expected to be suspended on October 2, but Pelosi has explicitly said his chamber will remain in session until a deal is reached.
In order to authorize additional economic aid, members of Congress will need to quickly reach agreement in September on the elements of a second pandemic relief plan.
How we got to this point
Even as Americans first received their stimulus checks and applied for business loans allowed by the CARES Act, lawmakers were considering the possibility of new rounds of aid.
Democrats introduced the HEROES law in May, which passed in the House of Representatives but did not gain popularity in the Senate. The $ 3 trillion bill would have authorized a repeat payment of $ 1,200 for eligible adults, among other considerations.
But Republicans in Congress did not present a rebuttal to the plan until late July, just as certain provisions of the CARES Act, including a federal moratorium on evictions and improved federal unemployment benefits, came to an end. expiry. This trillion dollar package from Senate Republicans, known as the HEALS law, provided a similar repeat of stimulus payments to Americans and expanded eligibility for dependent children, but otherwise provided a lean version of the House Democrats’ plan.
Democrats criticized the HEALS Act for not providing enough aid, and negotiations were ultimately dissolved as the parties could not agree on an appropriate amount of spending for a stimulus package.
Are there any other stimulation checks to come?
It remains to be seen whether a possible second stimulus package will include a direct payment to the Americans. Both political parties have shown support for the repetition of direct payments, and President Donald Trump has spoken out in favor of sending another round of checks.
The postponement of payroll taxes announced by the president last month could temporary salary increase for certain workers whose employers participate in the deferral period until the end of the year.
But unless Congress decides to cancel the deferred tax, that increase in your salary will have to be returned to the federal government next spring.
The experts have expressed concern that a temporary salary increase spread over several months contributes much less to increasing individuals’ financial security than a larger single payment. And several large organizations, including the House of Representatives, refused to implement the party.