Senate Republicans Unveil Slim-Down Stimulus Plan That Leaves Direct Payments

  • Senate Republicans on Tuesday launched a slim-down stimulus plan.
  • This includes $ 300 weekly federal unemployment benefits through December, $ 257 billion in small-business aid and no additional aid for cash-strapped states.
  • This marks the second round of the $ 1,200 incentive check, helping people meet the peak of lockdown orders in April and May.
  • Democrats are likely to block the bill, which they attacked as “dilapidated”.
  • Visit Business Insider’s homepage for more stories.

Senate Republicans on Tuesday unveiled a slim-down incentive plan to implement a $ 300 federal supplement to state unemployment benefits. But it leaves a second round of $ 1,200 direct payments, helping people end up at the height of the lockdown earlier this year.

Democrats are likely to block the bill, which includes no additional federal aid for states. It bears a $ 500 billion price tag. This is nearly half the initial $ 1 trillion plan that the GOP rolled out in late July.

Given its slim odds of passage, the law appears largely to convey a message to express the GOP’s greatest priorities for the next coronavirus relief package.

The bill would be slated for $ 300 federal unemployment payments until December 27 and would implement liability protections for businesses through the Safe Work Act. The measure raises the bar for hospitals, schools and small and large businesses to face coronovirus-related lawsuits.

Read more: Morgan Stanley: In response to the government’s slowdown, the stock market is on the rise for heavy turmoil. Here is your best strategy to capitalize on the shift.

It did not include a second round of direct payments, with support from President Donald Trump – and some Republicans – including Democrats. Experts say the money put an end to the funding of millions of unemployed as the epidemic closed the US in March.

The plan would extend the deadline to September 2021 to use $ 150 billion in federal aid in March without increasing flexibility or attaching new funds under the Coronovirus Assistance, Relief and Economic Security Act. Many states had already allocated their money to drive their public-health responses.

Democrats say GOP coronovirus relief scheme is ‘nowhere’

Republicans and Democrats still differ on measures to include another round of pandemic aid. Democrats alone are seeking nearly $ 1 trillion in aid for cash-strapped states, a figure that Republicans oppose as too expensive and unnecessary.

Both sides agree that the federal government should supplement the state’s unemployment benefits, but they are divided on the amount to approve. Democrats want to reinstate the $ 600 weekly aid that was from March to July, but the GOP plan would revive it at $ 300 a week – just as much as half.

Trump signed an executive order to provide $ 300 unemployment benefits at the end of last month. Most states are moving slowly to implement it.

The top Congress Democrats endorsed the plan on Tuesday even before it was formally unveiled. Senate Minority Leader Chuck Schumer and House Speaker Nancy Pelosi said in a statement, “Senate Republicans appear dead-set on another bill that comes no closer to addressing problems and has nowhere to lead.”

Read more: A strategist at the world’s largest wealth manager has paid 4% of election-related risks that could damage investors’ portfolios – and how to share protection against each one, regardless of who wins.

He said: “This dilapidated bill is intended only to help Republican senators vote to maintain their presence by voting a ‘check box’ that they are not held hostage by their extreme rightist who does not want to spend one Are out to help people. ”

Negotiations between the White House and Democrats broke last month amid disagreements over the amount of federal spending needed to preserve the economy. Democrats are pushing for at least $ 2.2 trillion in further spending.

The latest jobs report on Friday showed 1.4 million jobs in the US in August, indicating that the economy was slowly stretching its foot after the massive job losses triggered by the epidemic earlier this year.

But nearly 29 million Americans are still on unemployment benefits, and experts have warned against a recovery that supersedes many low-income people who have lost jobs and incomes at higher rates than the wealthier .