10 Sep 2021

President Trump recently tweeted his support for another major round of stimulus packages. A stimulus package is finalized before January 20: an agreement will be reached and the current House of Representatives and Senate will vote before the new Congress takes its seat in January. If Trump signs the bailout law, stimulus checks and other aid would likely expire in the coming weeks, with some groups receiving financial aid before the end of 2020. Discussions have partly been heated up because the multi-party urgency that the White House and Congress shared earlier this year had dissipated over the summer, in the run-up to the November election. Instead, the White House and Democratic leaders buried themselves during the talks and never reached an agreement. If a bill is passed that involves a direct payment, we think about how quickly the IRS could send a second stimulus check. Pelosi and Chuck Schumer, the Senate minority leader, are under increased pressure to support a smaller stimulus package, even if it means sacrificing some funding programs now, with the possibility of getting more help before President-elect Joe Biden`s inauguration on Jan. 20. The House of Representatives has nine days of official session and the Senate 14 days before the break of both houses for the new year. In less than a month to debate, design and vote on a new stimulus package, Congress would have to work overtime, including weekends, to strike some sort of deal. McConnell also reportedly passed a third revision of his tight aid plan, which failed twice in the Senate and was twice blocked by Democrats.

With even less support for programs appreciated by Democrats this time, it is unlikely that the bill will be able to pass the Senate. “After the elections, we will have the best stimulus package you have ever seen,” he said. Senate Republicans are seeking agreement on the next stimulus package. If not, the country will likely have to wait until February for the next possible bill. Will the deep political division in Congress further disrupt the stimulus negotiations? Among the proposals of both sides were the paycheck protection program for businesses, improved unemployment insurance and another stimulus payment of up to $1200 for people who meet the requirements. While not all commonalities manage to fit into a smaller law if passed first, it is very likely that these measures will receive multi-stakeholder support. The two sides also agree on increased financial support for coronavirus testing and the use of vaccines. . . .