Coronavirus stimulus: Democrats trim proposal, including checks, to try to break stalemate
The downsized Democratic stimulus plan presented on Monday is reducing payments for relatives - among other things compared to the original version - in order to revive negotiations with the White House before the elections.
The updated HEROES bill costs $ 2.2 trillion, compared to the original $ 3.4 trillion proposal they released earlier this year. It includes $ 436 billion for state and local governments, $ 282 billion for education and childcare, a second round of $ 1,200 economic reviews, and an additional $ 600 unemployment benefits through January, among other things.
What has changed is the additional $ 500 for loved ones versus $ 1,200 in the first iteration, as well as reduced amounts for state and local government aid, education, childcare, and other regulations. The price of a new stimulus package was a sticking point between Democrats and Republicans, leading to a month-long talks stalemate.
"The Democrats are keeping our pledge to compromise this updated bill, which is necessary to address the immediate health and economic crisis facing America's working families," said spokeswoman Nancy Pelosi (D-CA) in a statement on Monday. "We were able to make important additions and reduce the cost of the invoice by reducing the time initially covered."
House Speaker Nancy Pelosi, D-Calif., Speaks on the phone before conducting a television interview in the Russell Senate office building on Monday, September 28, 2020. (Photo by Caroline Brehman / CQ-Roll Call, Inc via Getty Images)
"The other team wants a gigantic package"
The package is likely to face resistance in the Senate as there is disagreement over the price of the bill and key provisions such as aid to state and local authorities remain in place. The $ 2.2 trillion price tag is still much higher than the recent Republican proposal, which was worth around $ 300 billion and was rejected in the Senate.
“You have a new offer on the table. We don't think the numbers are right - $ 2.2 trillion - which is a very large number, ”White House economic adviser Larry Kudlow told CNBC on Tuesday when asked about the Democratic proposal. "The other team wants a gigantic package and we don't think we need that."
Read More: Here's What You Need To Know About Eligibility for Unemployment Benefit
Pelosi and Treasury Secretary Steven Mnuchin, who have both negotiated for their respective sides, have spoken several times in the past few days and are expected to speak again on Wednesday after agreeing to resume negotiations.
Steven T. Mnuchin, Secretary of the Treasury, left the company during the Senate Banking, Housing, and Urban Affairs Committee hearing reviewing the CARES Act quarterly report to Congress on September 24, 2020 in Washington, DC. (Photo by Toni L. Sandys-Pool / Getty Images)
The White House expressed support for a $ 1.5 trillion center stimulus proposal put forward by a non-partisan group of House members, named the problem solver caucus, and urged Republicans to lower the price of their $ 300 billion Dollar proposal, with the president tweeted, “Go for the much higher numbers. "
“The point here is not whether the two parties can agree on certain provisions. The question is whether both parties want a deal before the election, ”Sarah Binder, professor of political science at George Washington University and senior fellow at the Brookings Institute, told Yahoo Money.
"Senate Republicans' past reluctance to spend even half as much as Secretary Mnuchin suggested leaves the negotiations in a stalemate," she said, "unless the White House can come together behind a package and the GOP's Get the Senate on board, the dead end. " To be continued. "
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Denitsa is a writer for Yahoo Finance and Cashay, a new personal finance website. Follow her on Twitter @denitsa_tsekova.
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