Democrats Unveil their New $ 2.2 Trillion Fiscal Stimulus Plan to Boost the U.S. Economy
Democrats in the US House of Representatives unveiled their new $ 2.2 trillion additional stimulus plan late Monday in a bid to break the deadlock in negotiations and increase fiscal support for the country’s economy before the presidential elections. Still, the proposal is more than likely to face opposition from Republicans in the Senate if it passes through Congress, where Democrats are in the majority.
The bill includes money for restaurants ($ 120 billion), airlines, educational and childcare centers ($ 225 billion) and entertainment centers, such as theaters, affected by the pandemic, as well as funds for the Postal Service. (15,000 million dollars), which according to the Democrats are crucial before the elections on November 3.
As it incorporated the bipartisan agreement reached at the end of March, the stimulus package promoted by the Democrats in Congress grants another round of direct checks to Americans of 1,200 dollars per taxpayer and an additional 500 dollars per dependent. They also extend the additional $ 600 a week in unemployment benefits that expired at the end of July.
The new proposal, which could be voted on this week in the House of Representatives, expands the Payroll Protection Program (PPP), which ceased on August 8, leaving more than 130,000 million dollars in funds without to distribute.
The bill allocates 28,000 million dollars for a potential vaccine, of which 20,000 million will be focused on its purchase, 7,000 million dollars on its distribution and the remaining 1 billion dollars on a public awareness campaign.
In addition, $ 2 billion is set aside to provide more personal protective equipment for all industries significantly affected by the pandemic. Spending on Medicaid, the federal public health program, is also increasing.
The plan also supports a measure that expands the tax credits for employee retention that were created in March. This initiative aims to keep workers on the payroll and help companies stay afloat by offering employers enough money to cover a percentage of wages, plus a credit for fixed expenses like rent.
State and local governments will receive federal assistance worth $ 436 billion. In the letter accompanying the bill, House Speaker Nancy Pelosi made it clear that Democrats are delivering on their promise to commit to an updated bill, “which is necessary to address the economic crisis and health problems facing working families in the US at this time. ”
The new initiative is substantially less than the $ 3.4 trillion bill that Congress already passed in May but failed to succeed in the Upper House. Now they are looking to find a middle ground with the White House and the Republicans. Pelosi and Treasury Secretary Steven Mnuchin are scheduled to speak Tuesday morning to determine if there is a feasible negotiating path that achieves a bipartisan compromise that can be endorsed by Republicans in the Senate.
It is worth remembering how Republicans in the Upper House put an additional stimulus bill of about a trillion dollars on the table in July, which did not win bipartisan support. Neither did the subsequent sweetened $ 350-500 billion bill that didn’t even get support in the Upper House, where Republicans have a simple majority.
Democrats Unveil their New $ 2.2 Trillion Fiscal Stimulus Plan to Boost the U.S. Economy - /10