US disarray after veto

Trump stimulus rejection may be ‘devastating’

WASHINGTON: US president-elect Joe Biden has warned of “devastating consequences” if President Donald Trump continues to delay signing a COVID-19 economic relief package passed by Congress.

Mr Biden spoke out as millions of Americans saw their jobless benefits expire and Mr Trump threw the long-awaited aid into doubt, demanding politicians more than triple the $600 payments to taxpayers.

“This abdication of responsibility has devastating consequences. Today, about 10 million Americans will lose unemployment insurance benefits,” Mr Biden said.

The stimulus measure is wrapped up with a $1.4 trillion funding Bill, without which the government will be forced to shut down at midnight on Monday (US time).

“In just a few days, government funding will expire, putting vital services and pay cheques for military personnel at risk,” Mr Biden added. “In less than a week, a moratorium on evictions expires, putting millions at risk of being forced from their homes over the holidays.”

In a video last week, Mr Trump, who is due to leave office in less than a month, called the $900m Bill “a disgrace”, despite it being passed with a bipartisan majority after months of negotiation.

The legislation was intended to throw a lifeline to business and Americans struggling to survive.

But Mr Trump said he would refuse to accept the Bill without increasing the cheques to taxpayers to $2000.

“I simply want to get our great people $2000, rather than the measly $600 that is now in the Bill,” Mr Trump reiterated on Twitter.

The move puts the Republican president at odds with his party’s Senate majority leader Mitch McConnell and House minority leader Kevin McCarthy, who have ruled out any bigger stimulus measures.

Republicans on Thursday blocked a Democratic effort to increase the payments that would go to all taxpayers earning up to $75,000 a year, with smaller amounts for those making up to $99,000.

“Delay means more small businesses won’t survive this dark winter because they lack access to the lifeline they need, and Americans face further delays in getting the direct payments they deserve as quickly as possible to help deal with the economic devastation,” Mr Biden said.

It is almost unprecedented for a president to veto a Bill that received such overwhelming bipartisan support.

The US COVID-19 death toll stands at more than 330,000. Economic recovery has faltered despite the recent rollout of vaccinations.