US lawmakers reach deal on $900b coronavirus economic relief package
The US Capitol building in Washington, DC. File/AFP
Gulf Today Report
Top Capitol Hill negotiators on Sunday sealed a deal on a $900 billion coronavirus economic relief package for millions of Americans as the nation struggles against the world’s largest outbreak of the virus.
Finally the package delivering long-overdue help to businesses and individuals includes aid for vaccine distribution and logistics, extra jobless benefits of $300 per week, and a new round of $600 stimulus cheques — half the amount provided in cheques distributed last March under the CARES Act.
It comes after months of partisan wrangling and finger-pointing as well as last-minute negotiations that culminated in a deal lawmakers said they hoped to approve on Monday.
It came together on Sunday after months of battling and posturing, but the negotiating dynamic changed in Republicans' favor after the election and as the end of the congressional session neared.
President-elect Joe Biden was eager for a deal to deliver long-awaited help to suffering people and a boost to the economy, even though it was less than half the size that Democrats wanted this fall.
Biden praised the bipartisan spirit that produced the measure, which he called "just the beginning."
"This is a model for the challenging work ahead for our nation," Biden said Sunday in a statement.
“We’ve agreed to a package of nearly $900 billion. It is packed with targeted policies to help struggling Americans who have already waited too long,” Republican Senate leader Mitch McConnell said in a statement.
Democratic House Speaker Nancy Pelosi and Senate minority leader Chuck Schumer confirmed an agreement had been reached with Republicans and the White House on a deal that “delivers urgently needed funds to save the lives and livelihoods of the American people as the virus accelerates.”
The agreement also has $25 billion in housing aid to prevent evictions and nearly $100 billion to help schools and childcare facilities to re-open, a statement from Pelosi and Schumer said.
Congress was working under a deadline of midnight Sunday, needing to reach consensus both on assistance to hard-pressed American households and companies and on the 2021 federal budget in order to avoid a government shutdown.
Number two Democrat in the House of Representatives, Steny Hoyer, said he expected the deal to pass on Monday and then head to the Senate.
This will require passage of a stopgap measure by midnight Sunday to keep the federal government funded an extra 24 hours and avert a shutdown.
“The House will move swiftly to pass this legislation immediately, so it can quickly be sent to the Senate and then to the President’s desk for his signature,” Schumer and Pelosi said in a statement.
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“With the horrifying acceleration of daily infections and deaths, there is no time to waste.”
Battered economy
Democrats and Republicans have been trading blame for months over the failure to reach a deal on this second relief plan — and continued to do so even after the deal was agreed on Sunday.
As the pandemic continues to take a record toll in US cases and deaths, the economy has been gravely battered, with jobless numbers rising in the past two weeks.
Making matters still worse, millions of Americans were set to lose jobless benefits after Christmas, even as federal moratoriums on evictions and on repayment of student loans are to expire at the end of the month.
New assistance for struggling businesses and the unemployed is seen as critical to getting the world’s biggest economy back on its feet, while new vaccines offer hope that an end to the pandemic may be in sight.
The initial $2.2 trillion package passed in March was credited with preventing a much more severe economic downturn.
It included huge amounts to rescue American companies, including $377 billion in grants to small businesses to pay workers and rent, $500 billion for loans to larger businesses and states and nearly $600 billion in tax breaks and deferrals.
But critics said too much assistance went to big corporations and not enough to ordinary Americans and small businesses.
On Wednesday, Fed chairman Jerome Powell had stressed the high risk that countless small businesses could go bust in the absence of new federal aid.
The Fed has estimated that the jobless rate will end the year at 6.7 per cent before dipping to 5 per cent next year — still a long way from the 3.5 per cent registered in February.
