As we move towards the end of the year and a break for lawmakers, members of the House and Senate are working quickly to complete a stimulus deal. The deal could include more money for unemployment benefits and could be worth up to $908 billion.
While the stimulus will be welcomed, it won’t include any direct payments like the $1,200 checks that went out to individuals earlier in the year.
What’s in the New Relief Package?
Some Senators have said that they might oppose the latest funding bill if it doesn’t include direct payments for Americans who need it the most.
Bernie Sanders said at the end of last week that “Given the enormous economic desperation facing working families in this country today, I can’t support this proposal unless it is significantly improved.”
Sanders said that the COVID-19 crisis is now worse than it has ever been in the United States. His assertion is correct, considering that hospitalizations and infections are now hitting record levels. The Vermont Senator called the relief bill totally “inadequate” and criticized certain elements of it, such as legal immunity for corporations accused of being negligent in causing Coronavirus outbreaks.
President-Elect Joe Biden also voiced his support for direct payments to Americans. Ahead of the weekend, Biden said that “I think it would be better if they had the $1,200.”
Biden believed that direct payments were still on the negotiating table, but Republicans now appear unwilling to fund the payments from the federal purse.
The proposed relief package will include funding for $300 of federal unemployment subsidies each week. It would also extend a moratorium on evictions. Businesses would also receive subsidies with an extension to the Paycheck Protection Program.
Direct Checks Could Still Happen in 2021
Senator Joe Manchin, a Democrat from West Virginia, said that direct payments don’t need to be on the current bill considering it already has benefits for the unemployed. Instead, Manchin suggested that direct stimulus checks should be left to the new administration in 2021. With Joe Biden coming to office, his moderate stance could potentially make him an important mediator for the divided House and Senate.
Even without the direct payments in the latest proposal, investors can still take confidence knowing that Congress has decided to allocate more money to help support America’s economic recovery.
You may be interested
Job Hiring is Picking Up as Employers and Consumers Gain ConfidenceLamont J - March 29, 2021
The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…
Fed Could Maintain 0% Interest Rate Until 2024Adam R - March 26, 2021
The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…