Congressional leaders have been negotiating another round of stimulus for nine months and finally struck a deal on a massive package this week. Republicans and Democrats have been mired in partisan gridlock for most of the year on points most important to their respective caucus. Congress passed a $2.2 trillion stimulus deal in March.
The final COVID relief package is $900 billion or a net of approximately $325 billion after rescinding $429 billion in Federal Reserve emergency lending programs and repurposing unused Paycheck Protection Program funds. Millions of Americans and businesses have been demanding more aid as the pandemic raged.
The bill contains a variety of provisions designed to help individuals and families struggling to navigate the COVID-19 pandemic. Lawmakers agreed to provide $600 direct payments to millions of Americans earning up to $75,000, $325 billion for small businesses, $82 billion for schools, $25 billion for rental assistance, and reinstated supplemental federal unemployment benefits at $300 weekly for 11 weeks. Not to mention the overarching spending package includes funds to increase nutrition assistance, vaccine distribution, broadband access, and a myriad of other key measures.
Many lawmakers were frustrated with leadership for giving them only a few hours to review a 5,600 page bill that delivers on a range of goodies and pet projects (aka “pork”) – including around $40 billion in foreign aid. Ordinary Americans expressed disgust with the delay in finalizing the bill and lambasted elected officials for offering a paltry $600 direct payment.
House Democrats and President Trump wanted to provide taxpayers with a $2,000 direct payment, but Senate Republicans opposed the idea in exchange for extending federal unemployment benefits. The country is approaching $27 trillion in national debt and deficit hawks in the upper chamber were uncomfortable with passing a multi-trillion dollar stimulus.
The “pork” and foreign aid included in the bill was not associated with COVID relief, but instead was attached to the omnibus spending bill that lawmakers must pass before year’s end to keep the government running for the remainder of the fiscal year. It’s quite common for the U.S. to provide foreign aid – the practice has been routine for over a century. Foreign subsidies in modern history have ranged between $40-$50 billion, which is 1% or less of all fiscal spending, but this year Americans are paying closer attention due to the pandemic and growing economic crisis.
The latest stimulus bill was crafted to be a “down payment” on economic assistance until the new administration is sworn in on January 20. Economists strongly believe more financial stimulus will be needed to support the economic recovery. President-elect Joseph R. Biden Jr. quietly pushed for Democrats to strike a compromise.
In the eleventh hour, President Trump emerged to decry the bill did not go far enough in providing direct payments to Americans, and threatened to veto the legislation unless it’s amended. The move surprised White House aides and senior lawmakers that were preparing to leave Washington for their Christmas break. So it appears Congress will continue to negotiate as they seek to broker a deal that is inclusive of many competing priorities.
In the midst of continued wrangling, Americans are left in a lurch, uncertain about how they will provide for their most basic needs – food and housing. Over 8 million people have fell into poverty since the pandemic started, 11 million are people still relying on unemployment benefits, and tenants across the country owe a combined $32 billion in past due rent. We need Congress and the president to act immediately.
