WASHINGTON–The next two weeks are critical for any type of new stimulus package to make it through Congress, but how or if Congress might act prior to the election remains quite uncertain.
“We are cautiously optimistic,” said NAFCU EVP/General Counsel Carrie Hunt over whether Congress and the administration can come together on a deal. “There has been a lot of movement related to the desire to provide additional help for Americans.”
There remains a significant gap between the House and the Senate over the size of any such stimulus, with the Senate considering a much skinnier bill than the multi-trillion relief bill already passed by the House. President Trump had initially signaled he wanted to end negotiations before reversing course and saying he wants the talks to continue.
Hunt said it’s mostly “baby steps” in the short term and that if there is good news it is the desire to move toward “common ground.” The Senate schedule this week is largely dominated by a vote on the nomination to the Supreme Court of Amy Coney Barrett.
If stimulus legislation does not move in the current congressional session, it means any help would need to come out of a lame duck Congress that would follow the elections in November.
‘Lot of Competing Interests’
When it comes to a lame duck, “suddenly there are a lot of competing interests to get things through,” observed Hunt.
That would be especially true were the Senate to flip to Democratic control in January, meaning Senate Republicans would push to the top their own priorities before they leave office.
Regardless of all of that, the next few weeks promise to be noisy in Congress as a variety of powerful interests—hotels, airlines, housing groups, etc.—seek to be heard on Capitol Hill.
“There is a lot of noise, but sometimes it’s just noise for noise’s sake,” said Hunt. “What is different this time is for many there are the same beliefs and the same goal. It’s a positive that Secretary Mnuchin and Speaker Pelosi are talking, and hopefully they will reach some agreement.
Among the issues NAFCU continues to hope to see in any relief legislation are PPP loan payment simplification, including an increase in the threshold, and capital relief for credit unions.