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Here’s what we know.
The House of Representatives speaker Nancy Pelosi has been meeting on and off with Treasury Secretary Steve Mnuchin for the past couple of months to get the next stimulus package done.
Since those talks began there have been different proposals tossed around.
Earlier this summer, we saw the $1 trillion Heals act and later on saw a $500 billion “skinny” stimulus package but neither of those gained enough traction to get passed.
But the latest proposal that is receiving serious consideration is a $1.8 trillion stimulus plan.
While Republicans have voiced that they are not on board for such an expensive package, there is reason to believe that there might be enough Republicans to approve such a package.
If this package was approved, here is what you could expect to receive.
Increased stimulus checks
This proposal contains more $1,200 stimulus checks. But the big change is that dependent payments have been increased from $500 to $1,000.
That could make a huge difference for families because I believe that you could receive the additional $500 up to three times. If the bill also expands the eligibility for dependents then this could add substantial relief to many families.
Both parties have been in agreement for more stimulus checks for quite some time but I have not heard how Republicans feel about the increase in dependent payments from $500 to $1000.
Over the summer, Trump used executive authority to authorize $300 in unemployment benefits. Before that, the Cares act had authorized $600 in bonus unemployment benefits.
This new proposal would land somewhere in the middle and authorize benefits that come out to $400 a week.
It’s worth noting that Democrats prefer to continue the $600 weekly benefits at least through January of next year although at this point they might want to extend it even further. It’s yet to be seen if Democrats will actually agree to the $400 a week benefit.
State and local funding
State and local funding has been a huge contentious issue.
An earlier proposal included aid at $250 billion but the new proposal increases that to $300 billion.
The major controversy over this type of funding is that Republicans see it as bailing out some states and cities that have exercised poor judgment in their spending. They don’t want to use funds to bail out governments that had issues arising prior to the pandemic.
While this new proposal increases the allocated amount for this type of funding, Democrats are still looking for something much higher, likely around $900 billion.
This is thought to be the main sticking point between Democrats and Republicans so there is still a considerable gap to be addressed.
These are just three of the key provisions that many people are concerned about.
Other items may include things like more aid for small business loans, liability protections, housing, and other items.
While Trump has been vocal about wanting a package even bigger than the $2.2 trillion proposal offered by Democrats, reportedly the White House administration desires to keep the cost of the bill below $2 trillion.
There still is the possibility that one or some of the items above could be passed on a standalone basis.
Some within the White House believe that this would be a more practical way to achieve progress.
“We’re still willing to be engaged, but I’m not optimistic for a comprehensive deal,” White House Chief of Staff Mark Meadows said.
“I am optimistic that there’s about 10 things that we can do on a piecemeal basis.”
Trump and others have discussed passing standalone legislation for things like stimulus checks, airline assistance, the paycheck protection program, and also support for the USPS.
Unfortunately, passing standalone legislation it’s just not a popular approach for Democrats.
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Daniel Gillaspia is the Founder of UponArriving.com and creator of the credit card app, WalletFlo. He is a former attorney turned full-time credit card rewards/travel expert and has earned and redeemed millions of miles to travel the globe. Since 2014, his content has been featured in major publications such as National Geographic, Smithsonian Magazine, Forbes, CNBC, US News, and Business Insider. Find his full bio here.