Tags: Coronavirus | Financial Markets | Trump Administration | congress | unemployment | impact | payment

WH May Concede Unemployment Payout in Compromise

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Wednesday, 05 August 2020 03:29 PM

The White House has reportedly made some "concessions" in an attempt to strike another coronavirus impact bailout, CNBC reported.

The compromises being made deal with the amount of the extended unemployment benefit, something the White House gave in on as House Speaker Nancy Pelosi was willing to lower her demands for U.S. Postal Service funding, per the report.

Here are the key issues:

$600 unemployment bonus

Pelosi was staking out a hard line on extending a $600-per-week supplemental pandemic federal jobless benefit, which lapsed last week. Republicans offered to extend the benefit into December and cut it to $400, according to aides confirming leaks reported in Politico. The aides were unauthorized to discuss the private talks and spoke to The Associated Press on condition of anonymity. The unemployment insurance issue is perhaps the most important to resolve, but some Senate Republicans up for re-election this fall appear comfortable with yielding on the question.

State and local government aid

Similarly, the White House has offered Democrats $150 billion in new appropriations to help state and local governments alleviate revenue losses from the damage the coronavirus has wrought on the economy. That matches the amount appropriated after a huge behind-the-scenes battle during negotiations on the bipartisan $2 trillion coronavirus bill that passed in March. Much of that original money is left over, and all sides want greater flexibility in using it, but Pelosi is demanding far more — almost $1 trillion — and key Republicans like Susan Collins of Maine, Cory Gardner of Colorado and Mitt Romney of Utah are pressing for more money as well.

Private-sector analysts say the issue can be addressed with considerably less money than Pelosi wants, especially if Congress revisits the issue later.

Direct impact payments to Americans

Pelosi and President Donald Trump agree on another $1,200 direct payment to most Americans, making the idea all but certain to be included in the final agreement, at a cost in the $300 billion range. Pelosi is also pressing the case for a 15% increase in food stamp benefits that are especially important to key progressive constituencies, and Democrats will not allow $20 billion in aid to farmers without a big trade-off on food aid.

Democrats are also pressing for help for renters and homeowners having difficulty making housing payments and help for front-line essential workers, but both sides support more funding for child care grants, community health centers and energy subsidies for the poor.

Education

A cornerstone to any agreement, and one of the areas in which both sides are eager to display generosity, involves over $100 billion for help to school systems. The White House and its GOP allies are pressing for more money for schools that return students to the classroom and want to help private schools as well. Very tricky talks remain, and Republicans are carping Pelosi is being too greedy. Meanwhile, schools are beginning to reopen across the country.

Liability shield

Senate Majority Leader Mitch McConnell, R-Ky., continues to insist the legislation include some sort of liability shield against lawsuits brought against businesses, schools and universities, and charities that operate during the pandemic. Pelosi is opposed for now, but Democrats — who see it is a key to any final agreement — are not ruling the idea out. But talks have yet to begin on the thorny topic, and there seems to be suspicion among Republicans the White House negotiating team is not as solidly behind the idea as McConnell is.

U.S. Postal Service

The Postal Service is being run by Postmaster General Louis DeJoy, a Trump appointee under attack for management changes that have coincided with delays in mail delivery. A recent Democratic offer called for $10 billion for overtime and other costs, down from a bloated $25 billion plan in the House-passed coronavirus bill. DeJoy is meeting with the negotiators Wednesday, a demand by Pelosi and Senate Minority Leader Chuck Schumer, D-N.Y., that follows his refusal to meet with Capitol Hill Democrats. Key Republicans, whose rural constituents are especially reliant on the post office, support the idea.

Paycheck Protection Program

More than $100 billion in leftover loan funding from the Paycheck Protection Program — relief money for small businesses — is up for grabs. Top advocates like Sen. Marco Rubio, R-Fla., are backing plans to ease some loan forgiveness rules and permit a second round of PPP payments to especially hard-hit businesses. Rubio works well with Democrats like Sen. Ben Cardin, D-Md., so extending the program is likely to be an easy lift.

Non-coronavirus items

The competing bills from House Democrats and Senate Republicans include a fair amount of money for non-coronavirus-related items. The Senate proposal contains an almost $2 billion new FBI headquarters in Washington, D.C., and $30 billion for the Pentagon, including direct help for powerful defense contractors. That is likely to get dumped, as will a more generous federal tax deduction for state and local taxes that Democrats included in their bill.

© Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


   
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The White House has reportedly made some "concessions" in an attempt to strike another coronavirus impact bailout.
congress, unemployment, impact, payment, compromise, white house, nancy pelosi
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2020-29-05
Wednesday, 05 August 2020 03:29 PM
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