Economic Stimulus Package Negotiations
The House began at $3.2 trillion; the Republicans began at $1 trillion. The House Democrats came down to $2.2 trillion; the Senate Republicans went down to $500 billion, but could not get the votes to take it to the floor in the Senate. Mnuchin is now offering $1.6 trillion. That was very close to where the House bi-partisan group (Problem Solvers Caucus) ended up in their negotiations. The House Democrats just passed their new bill for $2.2 trillion.
What do we know about the sticking points? The House Dems want $600 weekly for the unemployed; the White House is offering $400. The House wants $430 billion for state and local governments and the White House is offering $250 billion. They agree on $1200 stimulus checks to low, moderate and middle income individuals and families. They are close to agreement on a new round of PPP for small business that will be easier for smaller businesses to access and get forgiveness and not possible for the big guys to access and take all the money. They agree on $25 billion for airlines. They agree on $150 billion for education. They agree on $75 billion for Covid 19 testing and tracing. Mnuchin is offering $60 billion for help with rent and mortgages for distressed renters and homeowners.
What’s causing negotiations to move? Layoffs in large corporations like the airlines and entertainment giants, the President’s dismal poll numbers, same for Republican Senate incumbents seeking re-election, and Covid 19 is on the rise in over half the states (Midwest, Great Plains and Mountain States are now being hard hit).