WASHINGTON–A massive stimulus package of nearly $2-trillion and which would include payments to most Americans as part of the response to the coronavirus pandemic stalled in the Senate late on Sunday after Democrats blocked the deal.
Republicans blasted the delay while Democrats denounced the enormous bill as a corporate giveaway that favors big business over everyday workers. Members of both parties in Senate leadership expect the package to eventually pass—another vote is set for 1 p.m. ET today--although one complicating factor is one member of the Senate is confirmed to have the coronavirus, while four others are self-isolating out of concerns they do, too. As a result, they were unable to vote on the package.
The stimulus legislation needs 60 votes to move forward. Two senators introduced a resolution to amend rules to allow senators to vote remotely during a national crisis, but Senate Majority Leader Mitch McConnell (R-KY) has to date opposed such a measure.
Speaker of the House Nancy Pelosi (D-CA) also warned if Democratic concerns aren’t addressed the House could introduce its own bill, which would slow the process.
$1,200 Payments to Americans
As CUToday.info has reported, the legislation includes a $1,200 payment that would be sent directly to millions of Americans. CUNA had earlier expressed concerns to Congress over what a “flood” of such checks into credit unions might mean.
According to the New York Times, Republicans and Democrats reached agreement to provide the $1,200 direct payments equally to workers with incomes up to $75,000 per year before phasing out and ending altogether for those earning more than $99,000. Families would receive an additional $500 per child.
The rapidly growing cost of the legislation has raised some concerns by members of both parties. CNN noted the package grew by more than $1 trillion during several days of discussion in Congress and by $500 billion alone on Saturday. According to the report, the bill as currently written gives broad discretion to Treasury Secretary Steve Mnuchin over how the funds are used and on any restrictions for companies that receive loans, such as a prohibition on stock buybacks. The bill also includes a two-year limit on executive compensation.
Democrats, partly in response to a request from the National Governors Association, have pushed to expand stabilization funds for states and localities. Democrats have secured several requests, according to CNN, including an expansion and enhancement of unemployment insurance to the tune of at least $250 billion, the people said. They have also negotiated significant funds to be directed toward health care providers and front line health workers, CNN reported.
Forgivable Loans for Business
The package reportedly also includes a $350 billion forgivable loan package for small businesses that would be designed to keep employees paid even as business ground to a halt.
Mnuchin told Fox News Sunday the total economic impact of the aid to Americans and distressed industries will likely be more than $4 trillion.
Two other rounds of emergency legislation have already been passed and signed by the Democrats. The relief package’s total size does not include earlier announcements by the Fed of aggressive actions to pump liquidity into the financial system.
CUToday.info will provide ongoing updates.