Stimulus proposal update: 3 key provisions

The new $900 billion stimulus bill proposal has gained a lot of momentum over the past few weeks but it is still at a bit of a stalemate.

First, it looks like the original deadline of December 11 will be moved to December 18 so Congress will have more time to come to terms on an agreement.

Some leaders are saying that Congress absolutely cannot leave Washington without coming to a deal by the 18th.

“Leaving here without a COVID relief package cannot happen,” McConnell said.

But we have heard them say that before so I’m not sure how much stock I put into that.

Regardless, there are three main key items that seem to be holding things back.

Stimulus checks

The White House recently proposed $600 stimulus checks to go out to Americans. (This is actually the same amount as the stimulus checks that went out back during the recession in 2008.)

The problem with this proposal is that it replaced the unemployment benefits with stimulus checks and that idea did not get much traction with Democrats.

It seems that there is still a push to get the $600 stimulus checks out but while Republicans might get on board with it, I’m not sure the House (controlled by Democrats) will let this pass if it means no unemployment benefits.

I expect no stimulus checks to go out and for negotiations to return on these next year.

Liability protections & state and local aid

These two components are inter-related because lawmakers have been tossing around the idea of doing away with both of them as a compromise.

McConnell had said that he would drop the shield against lawsuits for coronavirus related negligence if Democrats would throw out aid to state and local governments.

Democrats, of course did not like this idea.

Reportedly, there has been little evidence that a flood of lawsuits related to coronavirus will be coming in so many lawmakers question the necessity of this.

So what would the solution be?

Well, McConnell actually has what sounds like a pretty good solution to these stalemates.

“Why don’t we set aside the two obviously most contentious issues. We know we’re going to be confronted with another request after the first of the year. We’ll live to fight those another day.”

I like the idea of simply passing the measures that are agreeable to both sides and then returning to the negotiating table in January.

But some Democrats feel that this type of approach is under cutting the bipartisan group’s framework that is acting as a foundation for the negotiations.

It’s basically taking too many steps backward for the negotiations.

So overall, the two big things that need to be sorted out include: aid to sate and local governments and liability shields. Stimulus checks may be playing a role as well but I think based on the bipartisan group’s framework, those will be dealt with in 2021.

H/T

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