AMERICANS are due to miss out on a second round of much needed financial support amid the coronavirus pandemic.
Stimulus checks worth $1,200 will not be included in the new $908 billion relief proposal, despite families and workers still reeling from the pandemic and in need of emergency aid.
The CARES Act was passed by Congress in March, authorizing support for 160 million Americans struggling due to the impact of the pandemic.
The first set of checks issued $1,200 for individuals and $2,400 for couples, plus $500 per child.
In the months that followed, Washington lawmakers have debated whether a second set of checks is necessary – despite an estimated 12 million Americans facing a loss of unemployment benefits by December 26, amid rising infection and hospitalization rates.
A group of bipartisan senators have now unveiled a $908 billion COVID-19 relief package and urged the House and Senate to break a months-long impasse by considering their package.
The aid package allocates about $300 billion in funding for small businesses through the Paycheck Protection Program, $240 billion in aid for state and local governments, $180 billion to extend boosted unemployment benefits at $300 per week through March, and includes liability protections for businesses that remain open during the pandemic.
The enhanced federal unemployment benefits would allow $300 per week for 16 weeks, food assistance and student loan forbearance, as well as funding for small businesses, schools and vaccines.
It notably does not include a second stimulus check, prompting pushback from a handful of senators, including Sens. Bernie Sanders, I-Vt., and Josh Hawley, R-Mo.
CNBC report that if approved, the aid would come as earlier initiatives that included $1,200 stimulus checks and $600 per week enhanced federal unemployment benefits through the CARES Act, as well as subsequent emergency measures put in place by President Donald Trump, have all expired.
More than 125 economists have urged lawmakers to include the additional stimulus checked in the relief legislation.
Sens. Bernie Sanders and Josh Hawley also joined forces to present an amendment to be attached to upcoming legislation that would include second $1,200 stimulus checks similar to the CARES Act.
On Monday, Sanders continued the calls for the additional direct payments to Americans.
He posted on Twitter: “Congress cannot go home for the Christmas holidays until we pass legislation which provides a $1,200 direct payment to working class adults, $2,400 for couples, and a $500 payment to their children.”
“This is what Democrats and Republicans did unanimously in March through the CARES Act.”
“This is what we have to do today.”
President-elect Joe Biden has also said he backs additional direct payments.
It comes days after the CEO of Starbucks joined Walmart and McDonald’s in asking Congress members to “take action” on a second Covid stimulus bill.
Kevin Johnson released an open letter to Congress, encouraging lawmakers to pass a second relief bill to save small businesses.
“Starbucks urges Congress to take immediate bipartisan action to pass new COVID relief legislation to address the urgent needs to our communities.
“Especially for the millions of Americans out of work, small businesses facing economic uncertainty and the public health needs of state and local governments on the front lines of the pandemic,” Johnson wrote.
Last week, Senate Majority Leader Mitch McConnell said Congress “can’t leave” for Christmas break without a coronavirus bill as he asked both sides to drop the two most controversial stimulus demands.
“What I recommend is we set aside liability and set aside state and local and pass those things that we can agree on, knowing full well we’ll be back at this after the first of the year,” McConnell told reporters this week.
“We can’t leave without doing a Covid bill – the country needs it.”
Republicans have repeatedly rejected Democrats’ demands for $150billion in funding for state and local governments.
Democrats on the other hand have equally been opposing to Republicans request for a sweeping liability ban.
In response to McConnell’s remarks, Senate Minority Leader Chuck Schumer said the state and local funding provisions “have broad bipartisan support,” as opposed to the liability proposal.
“The state and local funding provided by the state and local funding provisions have broad bipartisan support. Unlike the extreme corporate liability proposal,” Schumer said.
Lawmakers have been in a stalemate for months over the appropriate size for any follow-up to the $2.2trillion Cares Act passed in March.
However while debate may continue in Congress, it seems clear that Americans know what they want.
A Yahoo Finance-Harris Poll resulted in two in three Americans saying stimulus checks were the most important provision of the next relief deal.
1 in 4 (23%) support the liability protection for businesses and only 1 in 5 back student loan payment deferrals.
