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Tag: stimulus

  • Omicron Surge Spurs New Coronavirus Relief Push In Congress

    Omicron Surge Spurs New Coronavirus Relief Push In Congress

    Hotels, fitness clubs, tour bus companies, and minor league baseball clubs are part of a long line of businesses seeking billions of dollars in new COVID relief aid in response to the Omicron variant surge, if they can overcome opposition from many Republicans who say Congress has already given enough. Lobbyists for the businesses say their campaign has taken on new urgency as the Omicron variant sweeps across the country, forcing many companies to scale back or shut down operations as employees call in sick and customers cancel orders and reservations. A few Republican lawmakers support more relief funding for targeted industries, but most are generally opposed to spending more funds to help struggling businesses. These opponents say that the government has already provided sufficient relief, including more than $900 billion through the Paycheck Protection Program, and that more government spending will fuel inflation and budget deficits. “The U.S. government has no money to give anyone,“ said Senator Rand Paul (R-KY). ”In the past two years, Congress piled on several trillion dollars to our already substantial deficit. This unprecedented accumulation of debt is causing today’s inflation and will continue to wreak havoc in the future.”

    Lobbyists for those seeking aid, which also includes restaurants and Broadway stage productions, contend that their clients were left out of previous relief efforts or didn’t get nearly enough to cover losses. Industry lobbyists are targeting legislation being crafted by Senator Ben Cardin (D-MD), the chairman of the Senate Small Business Committee, who had found an ally in Sen. Roger Wicker (R-MS) for a bill that would deliver roughly $60 billion in grants from the Small Business Administration.

    Efforts to provide COVID relief assistance appear to have support in the House. Nearly 100 Democratic and Republican lawmakers signed a letter in December calling for help for businesses. Prospects are sketchier in the Senate. Under modern Senate procedures, most legislation needs 60 votes for approval. Democrats and their allies control 50 votes, so Senator Ben Cardin is seeking to sweeten the stimulus bill with provisions that can draw the support of 10 Republicans. He has the support of roughly a half-dozen Republicans so far.

    Lobbyists for various industries are angling to add their COVID relief proposals to a large appropriations bill that Congress must approve by mid-February to fund the government for the current fiscal year. But that too could prove tricky. Most Republican lawmakers say they are not eager for more government spending, though that could change if the Omicron surge further disrupts the economy and forces business closures and layoffs.

  • Congress Gives Final Approval Of Coronavirus Relief Bill

    Congress Gives Final Approval Of Coronavirus Relief Bill

    The US House of Representatives gave final approval on March 10 to one of the most significant economic stimulus measures in American history, a sweeping $1.9 trillion Coronavirus relief bill that gives President Joe Biden his first significant victory in office. The measure provides $400 billion for $1,400 direct payments to most Americans, $350 billion in aid to state and local governments, an expansion of the child tax credit, and increased funding for vaccine distribution. Forecasters expect it to supercharge the US economic recovery. “Help is here,” President Biden wrote in a tweet after the vote. The White House said he plans to sign the bill on March 12.

    Approval by a 220-211 vote in the Democratic-controlled chamber came with zero Republican support after weeks of partisan debate and wrangling in Congress. Democrats described the legislation as a critical response to a pandemic that has killed more than 500,000 people and thrown millions out of work. “This is a historic day. It is the beginning of the end of the great COVID depression,” Congresswoman Jan Schakowsky (D-IL) said. Treasury Secretary Janet Yellen said in a statement that passage of the legislation was a pivotal day for the US economy and would speed its recovery. But Republicans said the measure was too costly and was packed with wasteful progressive priorities. They said the worst phase of the largest public health crisis in a century has largely passed and the economy is headed toward a rebound.“It’s the wrong plan at the wrong time for so many wrong reasons,” Republican Representative Jason Smith said.

    Despite unanimous Republican opposition to the measure, Democrats predicted that Republicans would tout the benefits of the bill to constituents, despite their lock-step opposition in the House and Senate. Indeed, Republican Senator Roger Wicker wrote on Twitter: “This funding will ensure small businesses can survive the pandemic by helping to adapt their operations and keep their employees on the payroll.” Democrats were eager to get the final bill to President Joe Biden’s desk for his signature before current enhanced federal unemployment benefits expire.

    Although many Republicans supported Coronavirus relief under former President Donald Trump’s administration, no Republican lawmakers voted for the bill in the House or Senate. But the bill is popular with the public. A Reuters/Ipsos national opinion poll, conducted March 8-9, showed that 70% of Americans support the plan, including majorities of Democrats and Republicans. Among Republicans, five out of ten say they support the plan, while nine out of ten Democrats supported it. The legislation could have high stakes for both parties. If it succeeds in giving the economy a major boost, the plan could improve Democrats’ political fortunes as they attempt to hold their slim majorities in Congress in the 2022 midterm elections. Only one House Democrat, Jared Golden of Maine, voted against the package, saying its high borrowing costs endangered the recovery.

    The Coronavirus relief bill passed by the Senate in a marathon weekend session removed a $15-per-hour federal minimum wage increase by 2025; tightened the eligibility for $1,400 direct payments, capping them at those earning below $80,000, cut the unemployment insurance payment to $300 per week from the House’s $400 and targeted some of the state and local government aid to smaller communities. States that voted for Donald Trump in the November election are due to get a larger amount of education and child-care aid per resident than those that backed Joe Biden, according to estimates from two congressional committees. Residents of Republican-leaning states, which tend to have lower household incomes, also are likely to get larger stimulus checks and tax breaks as well, according to an independent research group. The massive spending push is seen as a major driver, coupled with a quickening pace of Coronavirus vaccinations and a slowing infection rate, in a brightening outlook for the economy. Morgan Stanley this week pegged 2021 economic output growth at 8.1%. The Organization for Economic Cooperation and Development predicted US growth would top 6% this year, up from an estimate of around 3% three months ago.

    With the Coronavirus relief bill now completed, attention turns to President Joe Biden’s next round of major legislation, including massive infrastructure investments, immigration reforms, and climate change initiatives. While conservatives bridled at the $1.9 trillion cost of the Coronavirus relief bill, it could be possible to get Republican buy-in on immigration and climate change legislation in the Senate, said Paul Sracic, a political science professor at Youngstown State University. But getting enough Republican support for Democratic initiatives to propel them to passage will be a challenge and “anything that gets 60 votes in the Senate is likely to be a problem with progressive Democrats in the House,” Sracic added.