To say that talks have not gone well on another COVID-19 relief package would be an understatement. Talks have gone nowhere between Democratic and Republican representatives, even after the extended unemployment insurance and most other clauses of the first stimulus package have expired.
Recently, however, one coalition launched a bipartisan plan to try to break the gridlock. The Problem Solvers Caucus, consisting of 24 House Democrats and 24 House Republicans, is offering a $2 trillion agreement to inject much-needed relief into the U.S. economy’s hardest-hit regions. Details so far are light, but we know that the latest plan would come with a price tag of as much as $2 trillion and would potentially involve a second round of direct payments of $1,200 per qualified adult and $500 per child to Americans. This is not likely to be a stumbling point, since both sides have endorsed further stimulus reviews. While many are considering it as false promises, many out are seeking them as the slow and steady approach of the government. To be on a positive, not people are still hoping for the best to come from the government side.
COVID-19 has brought the economy on its knees, and the political parties are trying their best to offer the citizens with the best things so that they can lead normal lives. The new proposal is expected to include the following:
- For eight weeks, $450 a week unemployment benefits increases, transitioning to a maximum weekly $600 (total benefit, not a boost) afterwards. Democratic leaders have insisted on some legislation to increase the $600 weekly raise. But the final decision is yet to come, and you can just sit and assume what is going to happen next.
- Health services, such as coronavirus monitoring and touch tracing, $100 billion. Finally!! There have been no alterations yet. This expense is being considered and taken in a strict way.
- $500 billion to state and local governments, which is actually a lot less than Democratic leaders had requested, but much more than previously proposed by the White House.
- $145bn for schools and daycare centres. That’s around one-third of what the Political leaders have suggested before. They are not taking the education system positively. The focus has to be shifted to the area as well; else, the parents won’t be able to bear the expenses from their savings.
- For the U.S., $15 billion Postal services.
- Also, it will include a second round of paycheck protection program loans and $290 billion for small businesses.
In addition to these clauses, if the economy is still a long way from emerging from the recession by January, the plan will contain triggers that would immediately allow the third round of stimulus checks and expand enhanced unemployment benefits. It should also be remembered that we only have an outline of what the plan will contain. At this point, we do not have any of the main information (such as who will apply for a stimulus check or the second PPP loan). It’s difficult for sure to say. The plan falls short of the amount (about $2 trillion) that Democratic leaders had claimed their bare minimum. It is important to remember that the bill will eventually spend just over $1.5 trillion, with future spending of about $400 billion in early 2020 if any additional spending is caused.
The bill will face fierce opposition on the Republican side by House and Senate representatives who think the price tag is too high. Bear in mind that a bill that would cost around $500 billion was recently put forward by Senate Republicans. However, with Treasury Secretary and White House chief negotiator Steven Mnuchin advising lawmakers not to think about the federal deficit right now, some lawmakers could be convinced on the right to support such a plan. The bottom line is that while there are some legitimate reasons why both sides should go along with the bill, some significant hurdles are likely to stand in the way. This is still a rapidly changing situation, and it is definitely probable that, before being discussed, the proposed plan may be substantially modified.
The Motley Fool is a content partner for USA TODAY that provides financial news, analysis and commentary to help individuals take control of their financial lives. Its content is produced independently from USA TODAY. If you’re like most Americans, your retirement savings are only a few years (or more) behind. But a handful of undisclosed Social Security Secrets can help ensure a boost in your retirement earnings. One simple trick, for example, could cost you as much as $16,728 more. Annually! When you understand how to optimize your Social Security income, we believe you can retire happily with the peace of mind that we are all seeking.
With a lot of people already lost their jobs and a lot more living with their expenses cut short to half, it is becoming very difficult for the citizens to lead a life. The budget is going on a disturbing track, and the economy is facing a lot of issues. With political parties not able to come to a conclusion, it is becoming difficult to decide what is there in store for the future. All you know is that the pandemic is far from getting over. Life has to get to normal, but COVID-19 is giving it a fight and making it difficult to survive. When the U.S. is fighting hard for its people, these can be a third check coming up for the amendments to be made. The bottom line is that while both sides can agree with the bill for some good reasons, there will likely be some great obstacles. This is also a fast-changing situation, and the current proposal could definitely be updated considerably before consideration is granted. All we can do is hope for the best to be served by the government for the benefits of the public.
With over 15 years as a practicing journalist, Nikki Attkisson found herself at Powdersville Post now after working at several other publications. She is an award-winning journalist with an entrepreneurial spirit and worked as a journalist covering technology, innovation, environmental issues, politics, health etc. Nikki Attkisson has also worked on product development, content strategy, and editorial management for numerous media companies. She began her career at local news stations and worked as a reporter in national newspapers.