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There’s some optimism that a bipartisan $908 billion aid proposal might check enough boxes for Democratic and Republican lawmakers to deliver relief to struggling Americans as several end-of-year deadlines near.
Among Democratic lawmakers, the proposal is viewed as an appetizer to a full-course stimulus package they hope to pass once President-elect Joe Biden takes office. House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer have endorsed the proposal.
But Senate Majority Leader Mitch McConnell, the Kentucky Republican, has not publicly endorsed the package, which lacks a liability shield for businesses and other organizations from coronavirus-related lawsuits.
McConnell previously indicated that he would not support a stimulus package unless it protects employers from these types of lawsuits, but on Tuesday he said he would be willing to push that off if Democrats pause their push for increased state and local funding. Schumer rejected McConnell’s offer, saying that state and local funding is essential and “bipartisan.”
Washington is also wrestling with whether or not an end-of-year relief package should include a second round of direct stimulus checks or not. The current $908 billion bipartisan proposal doesn’t aim to deliver any direct payments.
That’s among the reasons why Sen. Bernie Sanders and five of his colleagues in the Senate Democratic Caucus won’t back the bipartisan package.
But late Tuesday, Treasury Secretary Steven Mnuchin unveiled a new $918 billion aid proposal that calls for $600 stimulus checks for individuals and $1,200 for couples in place of enhanced unemployment benefits.
The six Democratic lawmakers who signed the letter circulated on Tuesday signaled that they wouldn’t be willing to budge on anything less than $1,200, plus an additional $500 per child.
Below is what’s included in the $908 billion proposal.
$300 a week in enhanced unemployment benefits
Under the CARES Act, unemployed Americans received an additional $600 a week in unemployment benefits. That ended in July. The proposed benefit of $300 per week would last through April 2021 and begin at the end of this month.
Extension of all pandemic unemployment insurance programs
The CARES Act program allowed gig workers and independent contractors to qualify for unemployment benefits. Absent of any legislative action these workers will become ineligible for unemployment benefits. The bipartisan proposal calls for a 16-week extension of these programs beginning at the end of this month.
Housing and rental assistance
$25 billion would be allocated towards providing financial assistance to Americans struggling to afford housing costs.
“90 percent of funds must be used for payment of rent, rental arrears, utilities, utility arrears, and related housing stability services with 10 percent of funds available for housing stability services,” said a bill summary that was circulated Wednesday. The summary also called for “specific guardrails to ensure support for the most in-need households, with a preference for households with 50 percent of area median income and below,” and an extended eviction moratorium through the end of January 2021.
Paycheck Protection Program
The proposal calls for an additional $300 billion to be injected into the Paycheck Protection Program that is administered by the Small Business Administration. It would allow hard-hit small businesses to receive a second forgivable loan.
Vaccine development and distribution
The proposal allocates $3.42 billion for direct grants for states, localities, territories, and tribe, and an additional $2.58 billion for Centers for Disease Control and Prevention vaccine distribution and infrastructure, according to the bill summary.
Testing and tracing
Some $7 billion would be allocated toward testing and tracing efforts, $2 billion of which would be allocated directly to nursing homes and long-term care facilities.
Child care
Some $10 billion would be allocated to “support child care providers struggling due to the COVID 19 pandemic,” the bill summary says.
Student loans
The proposal calls for an extension on student forbearance through April 2021.
Now read: Another COVID relief package looks likely before year’s end, analysts say
