The second round of ‘coronavirus’ bailout: what are the options considered in Congress

In the administration, trump said earlier that do not intend to take additional measures to assist, at least until July, writes Fox News. Since recently, the renewed increase in cases of coronavirus threatens to undermine the U.S. economic recovery after the worst recession since the great depression, all of this has placed additional pressure on Congress.

Второй раунд 'коронавирусной' финпомощи: какие варианты рассматривают в Конгрессе

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Will look like the next bill on Federal assistance remains unclear, but some measures being considered in the last month include another round of financial payments, additional support for businesses and the unemployed, the award for employment and the employers.

The June jobs report the labor Department showed that employers added a record 4.8 million jobs last month and the unemployment rate fell to 11.1%. These data can play a key role in what kind of aid will ultimately be adopted in law.

“The optimistic news can inspire politicians, who do not want to provide financial support to enterprises and employees”, — said on Thursday, July 2, Josh Wright, chief economist at iCIMS, and a former member of the Federal reserve system.

White house officials supported the need for additional care after the publication of the report. About 48 million Americans have lost their jobs in the outbreak of coronavirus and the subsequent recession, which was not since the great depression.

In the property, trump stated that they did not intend to take additional measures to assist, at least until July. The Senate does not plan to return from a two-week summer vacation until July 20, so it is unlikely that the aid package would be adopted before that date.

A second round of payments

The head of the Department of Finance Steven Mnuchin economic and White house adviser Larry Kudlow July 2, said that another direct cash transfer is still on the agenda when discussing next package of financial aid.

“Direct payments are likely to be part of this, because the President is now concerned about what is happening,” said Kudlow.

In the last week of June, President trump spoke in support of the second round of assistance, though it’s unclear how much money can to the Americans and when it happens.

“I support larger amounts than the Democrats, but it has to be done right, said trump during an interview for Fox Business July 1. — I want people to have more money so they can spend them. I want the money came fast and easy”.

The only offer that was made to one of the chambers of Congress, is the law HEROES, a huge aid package of $3 trillion put forward by the Democrats. Among other things, it includes a second one-time payment of up to $1200 for some Americans. However, in the Senate, controlled by Republicans, the legislation has stalled.

Bonus for return to work

Some Republicans expressed concern that the additional unemployment benefits of $600 per week actually do not encourage workers to return to their jobs. Benefits expire at the end of July.

A member of the house of representatives from Texas Kevin Brady, the chief Republican on the Committee of the U.S. house of representatives on ways and means, proposed a bill according to which recipients of unemployment benefits who are returning to their jobs, are eligible for a lump sum payment of $1200 or two weekly payments of $600.

Another proposal from Senator Rob Portman of Ohio will provide $450 per week for laid off Americans returning to work, in addition to their wages. In both cases, the aid packages will be in effect until July 31, the same date when expires additional unemployment benefits of $600 a week.

The idea of additional remuneration has also received support among some White house officials who spoke in support of the reform of unemployment benefits in the next aid package.

“We need to reward people for what they returned to work, recently told Kudlow. — Will there be any bonus for re-employment. We are not going to continue to pay $600, it makes it difficult to work with.”

Extended unemployment benefits

Additional $600 per week as unemployment benefits will officially cease to pay on 31 July, but in fact the States will have to pay additional money only for the week ending the 25th or 26th of July. Without this allowance will revert to the standard $378 per week — a reduction in revenue of approximately 60%.

House Democrats want to continue to pay additional $600 a week since July. The Law HEROES $3 trillion they proposed to extend payments in the amount of $600 at least until the end of January 2021. The bill also provided so-called “soft limit”, which would receive additional money to the needy persons to March 2021.

Wednesday, July 1, of Senate Democrats introduced a proposal that will extend the weekly increase in aid. Initiated by the minority leader in the Senate, Chuck Schumer and Senator Ron Widenor, Oregon, “American law about saving of labor resources” will extend benefits as long as the average overall unemployment rate in the state of the recipient three months will not fall below 11%.

The amount of benefits will decrease by $100 for each percentage point below 11% until the unemployment rate falls below 6% in a particular state. The idea is to “gradually phased out” need help, wrote to Schumer, and to avoid the so-called fiscal cliff (according to Wikipedia, it means a situation in which in the USA can automatically join a number of laws that increase taxes and reduce government spending to reduce the budget deficit and reduce public debt).

However, Republicans are unlikely to support extended unemployment benefits.

“Unemployment is extremely important. And we must be sure that for those who are unable to return to work, the allowance is adequate, said McConnell to reporters. — It’s not a question of whether we should pay people a premium for something that they did not return to work. I think it was a mistake. And we hear across the country that are actually harder to attract people to return to work.”

Protection of employers

Kudlow said that the administration is also considering tax breaks for employees on trump insisted from the beginning of the pandemic — deductions on expenses such as dining out, entertainment and excursions, as well as measures of liability protection for the business.

“This is a massive package,” said Kudlow.

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