The cost of the proposed Republican measures is estimated at $1 trillion, but Democrats have called the new aid package not wide enough, writes “Voice of America”.
Republican senators introduced a draft stimulus measures in pandemic coronavirus worth $1 trillion, which includes the new direct payments to millions of Americans, additional assistance to small businesses and money to re-open schools.
Conservative lawmakers immediately criticized it as an unwarranted and expensive, and the Democrats stated that he does not meet the needs of the country.
It is expected that he will initiate serious negotiations with Democrats in the House of representatives, which in may passed its own bill on health care and the recovery of the economy, which is projected to cost $3 trillion.
The current stimulus package – the fifth since the beginning of the pandemic in March.
“We have prepared a carefully designed and focused project that will hit right on the three crises facing our country: we are talking about the return of children to school, return employees to work and win the health care system in combating the virus,” said Republican majority leader in the Senate Mitch McConnell, speaking in the house.
McConnell outlined the main provisions of the Republican project.
another paid to individuals in the amount of $1200 ($2400 for married couples);
the second part of the program of small business, providing more than $500 billion companies with fewer than 500 employees (this time offer the Republican party focused on hard-hit firms, employing more than 300 people);
allocation of $100 billion for full opening of schools and universities, which is a priority for President Donald trump;
the allocation of $26 billion for the development of vaccines and therapeutic treatments COVID-19.
The promulgation of the Republican package was postponed amid disagreement between Republican lawmakers and the White house.
“The allocation of one trillion dollars meets significant resistance, said Republican Senator Ted Cruz to reporters on Capitol hill. The response to these challenges will not just be shoveling money out of Washington. The response to these challenges will be putting people back to work.”
Perhaps the most controversial aspect of the Republican plan is that it cuts Federal unemployment benefits for 400 dollars a week, which caused a rapid negative reaction from Democrats, CNN writes.
This proposal will reduce Federal unemployment benefits, the validity of which expires at the end of this week, to $200 from the current level of $600, as States move to implement the system, providing about 70 percent of the replacement salaries of workers laid off.
“As it was in March with the law CARES, the Republicans in the Senate made another bold concept to help our nation. So now we want our fellow Democrats to also reprising his role,” said McConnell, urging them to “put aside resistance and to rediscover the urgency, which helped CARES to go through the finish line.”
McConnell expressed the hope that in the next two to three weeks, the Senate will be able to present to the house the following bill assistance in connection with the coronavirus.
Democrats criticized the legislation as not sufficiently extensive.
The leader of the democratic minority in the Senate, Chuck Schumer called the Republican initiative “woefully inadequate” because it does not provide enough money for safe opening of schools, does not protect homeowners who are in a difficult financial position from the withdrawal taken out a mortgage of housing, and tenants from eviction.
“How heartless, said Schumer. – How cruel.”
Schumer especially were critical to the reduction of unemployment benefits, saying: “the Republican proposal for unemployment benefits, simply put, not feasible,” and added that “the idea that we need to sharply reduce these benefits, because employees will prefer to stay at home, have been greatly exaggerated”.
He also called the plan of Republicans “undecided, unfinished legislative proposal” and “too little, too late”.
Who will be entitled to payment of $1200
The law on health care, economic assistance, protection of responsibility and schools (HEALS Act) offers a second round of financial aid to Americans of $1200, writes CNBC.
The second round will be carried out according to the same formula as the first, according to the note of the Finance Committee of the Senate: persons with gross adjusted income up to $75,000 per year in 2019, and couples who earn up to $150,000 will receive the full amount ($1200 or $2400, respectively). Checks will be reduced by $5 for every $100 of income in excess of these limits, the payments completely stopped in the amounts of $99 000 and $198 000 respectively.
Persons who have no income and those whose income comes from programs such as benefits through the SSI program, continued to be eligible for the full amount.
Individuals will also receive $500 for each dependent, as in accordance with the Law CARES. Unlike the first round, this time in charge there is no age limit. The law CARES restricted payment for dependents age 17 years, excluding the possibility to receive many College students and other adult dependents.
The new bill, the Senate also clarified that the checks can’t come at the expense of those who died before January 1, 2020, as they will not get prisoners (the first round of bailout mistakenly sent a large amount of those and others).
To send you money, the IRS will need the address or information of your Bank account. You can provide this information on the website of the IRS.
What else in the law?
A spokeswoman for the Republican party, Senator Susan Collins from Maine described how the legislation will update the Program for the protection of wages.
The proposal, according to Collins, “will be the most affected small employers, those whose income has decreased by 50% or even more to get a second non-refundable credit”.
“So we aim to help employers who most need help, we restrict these second loans to small enterprises with 300 or fewer employees,” she added.
Republican Senator Richard Shelby of Alabama, Chairman of the appropriations Committee, explained other key components of the package, including funding for testing and training.
“First, the $16 billion will be used to accelerate testing in the United States, with a particular focus on schools, employers, institutions and nursing homes. Secondly, $26 billion will go to the development and dissemination of vaccines, therapeutics and diagnostics, ‘ said Shelby. — Thirdly, there is a $105 billion for a stabilization Fund education, to help schools to adapt to the circumstances they face”.
Shelby added: “This law provides additional funding to K-12 schools for the children to return to class, at least 50% of the time that will be a great beginning.”
Senator John kornyn, a Republican from Texas, described the measure of liability protection to be included in the plan, warning that “without action from Congress, the epidemic of litigation could sink the various businesses that we hope to support.” He said the new proposal “guarantees that those who act in good faith and follows all the relevant guidelines will not be erased by the court from the face of the earth.”
Before this is approved. Now the leaders of the house of representatives — which in may introduced a bill on HEROES $3 trillion, and the Senate is expected to hold talks before making a final package. It is expected that negotiations will last until Aug.
McConnell called the plan a “starting point”, acknowledging that the Democrats will be needed to ensure that the project got a place on the President’s Desk, and that there is still a lot of negotiations.
“Each bill needs to start somewhere. The Republicans are in the majority in the Senate. This is the starting point. You will have many stories to cover in the course of the case, as we discuss these issues in different political circles, and with the administration,” he said.
If the bill passes, expect a new round of payments will have weeks or even months.