Americans in need of additional coronavirus stimulus money may not see federal government help until early next year, analysts predict, as lawmakers from from both parties call for their own brand of aid and the incoming president-elect promises to make state and local funding a priority of his new administration.
Negotiations between Republicans and Democrats broke down in late-October just before the general election. An idealogical difference of around $1.5 trillion in spending separated a $2 trillion House Democrats bill from a “targeted” $500 billion plan in the Republican-held Senate.
Biden hopes Republicans are ready to make a deal in January
Incoming President-elect Joe Biden said Wednesday he hoped GOP lawmakers were prepared to make a deal after the president leaves office, The Associated Press reported.
Speaking virtually to health care providers, Biden said Republicans have been reluctant to make a deal with Democrats about state and local government coronavirus funding “because of their fear of retribution from the president.”
“Hopefully, when he’s gone, they’ll be more willing to do what they know should be done, has to be done, in order to save the communities they live in,” the president-elect said.
According to the AP, Biden promised when he takes office in January that he will make state and local government funding a priority.
Pelosi and Schumer send a letter across the aisle
House Speaker Nancy Pelosi, D-Calif, and Senate Minority Leader Chuck Schumer, D-N.Y., sent a letter to Senate Majority Leader Mitch McConnell, R-Ky, on Tuesday asking that he meet them at the negotiating table this week to work out more coronavirus stimulus for the country.
“We were encouraged by your comments shortly after the election that you believe the Congress needs to act on another COVID-19 relief package,” the letter states.
“The COVID-19 pandemic and economic recession will not end without our help. It is essential that this bill have sufficient funding and delivers meaningful relief to the many Americans who are suffering. For the sake of the country, we ask that you come to the table and work with us to produce an agreement that meets America’s needs in this critical time,” the four paragraph letter concludes.
On Twitter late Tuesday afternoon, McConnell said, “Republicans have tried for weeks to pass another targeted rescue package. It would send hundreds of billions of dollars to schools, unemployment aid, another round of the job-saving PPP, and healthcare.”
The majority leader is referencing weeks of failed negotiations that ultimately led to the Senate leaving for a November recess before the election.
“Democrats repeatedly blocked it all. Let’s hope they let us make law soon,” McConnell added on Twitter.
Political analyst think stimulus is coming, but maybe not soon
According to a CBS News story, “analysts expect lawmakers to eventually set aside their partisan differences and pass another stimulus bill, the size and timing of a measure remain uncertain.”
Here is what analysts that CBS News spoke to think:
- McConnell will continue to push for his $500 billion plan that supports another iteration of the Payroll Protection Plan from last spring’s CARES Act.
- Republicans could try to pass a smaller package since that pharmaceutical companies are reporting early success with coronavirus vaccine.
- Democrats want funding for state and local governments.
- Republicans do not want more weekly supplemental unemployment aid, arguing people getting extra $600 every week won’t go back to work
- Republicans and Democrats agree on the Payroll Protection Plan and another round of individual economic stimulus checks.
- A second round of $1,200 checks is “likely,” but wouldn’t happen until early 2021.
JPMorgan Chase CEO says Congress is acting childishly
On Wednesday, banking giant JPMorgan Chase CEO Jamie Dimon called on Congress to get over their differences and to get legislation passed to help American’s struggling with economic hardships of the coronavirus, CNBC reported.
“I know now we have this big debate. Is it $2.2 trillion, $1.5 trillion? You’ve got to be kidding me,” Dimon said in an interview. “I mean just split the baby and move on. This is childish behavior on the part of our politicians.”
“We need to help the citizens of America,” the CEO added, “let’s just get through it.”
Dimon said he didn’t blame one party or the other and that he understands arguments on both sides, but reaching a deal isn’t about a victory for Republicans or Democrats.
Without more stimulus, he said “the probability of having a good economic outcome drops.”