Virus has members of GOP in stimulus dilemma
WASHINGTON — Five days after Gov. Greg Abbott announced he was putting a hold on the state’s reopening due to a surge in coronavirus cases, Texas Republicans in Congress are coming under increasing pressure to support another large stimulus bill.
Just a few weeks ago Texas Republicans were arguing for reopening the economy and against new spending — pointing to their own state’s success in reopening businesses and schools. But now Texas is facing weeks if not months of shutdowns and increased unemployment for which the state is likely to require federal assistance.
During a press event to mark the United States-Mexico-Canada Agreement going into effect, Rep. Kevin Brady, R-The Woodlands, said that while he disagreed with Democrats’ proposal for another $3 trillion stimulus package, something would have to be done.
“There needs to be a continued focus on making sure small- and medium-sized business ride this out,” he said. “This is an unprecedented crisis and it’s required an unprecedented response.”
Not all Texas Republicans are on board. With the federal deficit projected to reach $3.7 trillion this year — almost a four-fold increase over last year — the party’s conservative wing is increasingly concerned about the national debt,
Sen. Ted Cruz, R-Texas, continues to push for a stop to federal spending, arguing that the economy should rebound through lower taxes and less regulation.
“Americans are worried about the future and are looking for a light at the end of the tunnel,” a spokesman for Cruz said in an email Tuesday. “Sen. Cruz believes we need to push pause on spending and not allow Nancy Pelosi and Chuck Schumer to hijack discussions.”
But with Texas and other states putting the reopening of their economies on hold to prevent the pandemic from spiraling out of control, tightening federal support to those suffering under a government-imposed lock down poses a political risk to Republicans.
Holding their ground on spending is becoming increasingly difficult for conservative lawmakers facing reelection in November, said Mark Jones, a political science
professor at Rice University.
“They’ve lost their best argument which is (a stimulus) is not necessary any more because people are going back to work,” he said. “Republicans have a half dozen vulnerable Senate seats up for election, and the party can ill afford to be perceived as insensitive to the millions of Americans really struggling.”
What Republicans like Brady and Sen. John Cornyn, R-Texas, are looking for is a more targeted approach than that proposed by Democrats, which would extend expanded unemployment benefits through the end of the year.
Republicans are calling that plan non-starter. But with enhanced benefits set to expire at the end of July, Republican leaders in the Senate are preparing to pass another stimulus package when they return from break at the end of the July.
Republicans are considering everything from a payroll tax holiday for businesses to a bonus for workers coming off unemployment to return to their jobs.
“The Republican approach would be to extend benefits but not have a disincentive to work,” said Matt Mackowiak, a Republican consultant in Austin. “I think it’s going to get extended, but at what level?”
That would likely draw criticism from Texas conservatives, some of whom have already criticized Abbott for his decision to delay the reopening the state’s economy.
But as the state’s infection rate continues to grow and hospitals become overwhelmed, most Republicans are sticking by the governor, even if his actions to shut down bars and reduce capacity in restaurants have made federal spending all the more necessary.
“We can’t shut the economy down all together. It will do far greater damage long term,” said Rep. Jodey Arrington, R-Lubbock. “But if there are resources that are necessary and there are gaps in funding, I’m always open to do that.”