US's $2 trillion rescue plan closer to a solution

The White House and Senate have reached agreement on a $2-trillion (R35-trillion) stimulus package for the US economy and millions of Americans ravaged by the coronavirus crisis, top lawmakers said on Wednesday.

The Senate and House of Representatives still need to pass the legislation before sending it to President Donald Trump for his signature.

The Senate will vote on the measure later on Wednesday.

The deal aims to buttress the teetering economy by giving roughly $2-trillion to health facilities, businesses and ordinary Americans buckling under the strain of the coronavirus pandemic.

It will put cash directly into the hands of Americans hard hit by the crisis, provide grants to small businesses and hundreds of billions of dollars in loans for larger corporations including airlines.

It also proposes the injection of around $130bn (R2.2-trillion) into what Democrat Chuck Schumer calls “a Marshall Plan for hospitals” and health care infrastructure, referring to the huge American aid programme to rebuild Europe after World War 2.

With infection numbers rising from coast to coast, hospitals have been in dire need of equipment such as protective gear, intensive care beds and ventilators.

Asian equities soared on Wednesday on the news, with Tokyo’s Nikkei closing up 8% and oil prices also climbing.

US stocks had already surged on Tuesday on expectations of an agreement.

The agreement followed multiple failed attempts to advance a Republican-led proposal, and pressure had soared to swiftly reach a compromise.

President Donald Trump

Senate and House of Representatives need to pass the legislation first

called for an immediate resolution to the stalemate.

“Congress must approve the deal, without all of the nonsense, today,” he said on Tuesday on Twitter.

“The longer it takes, the harder it will be to start up our economy. Our workers will be hurt!”

Democrats rejected the original package, arguing that it put corporations ahead of workers, including health professionals on the front lines of the battle against a pandemic that has infected 55,000 and killed nearly 800 in the US alone.

As the hours ticked away Tuesday, several lawmakers voiced their anxiety.

“Pass the damn bill. Stop negotiating. Enough is enough,” a visibly angry Republican Senator Lindsey Graham said on the floor, after accusing Democrats of “nickeling and diming at a time people are dying.”

Any relief package that passes the Senate will need to clear the Democratic-led House too before going to Trump. —