Proposal: Deliver $500B to Americans starting April
WASHINGTON » By a sweeping bipartisan tally, the Senate on Wednesday sent President Donald Trump a $100 billion-plus bill to boost testing for the coronavirus and guarantee paid sick leave for millions of workers hit by it. But lawmakers and the White House had already turned their focus to the administration’s far bigger $1 trillion plan to stabilize the economy as the pandemic threatens financial ruin for individuals and businesses.
Details on Trump’s economic rescue plan remain sparse — and it’s sure to grow with lawmaker addons — but its centerpiece is to dedicate $500 billion to start issuing direct payments to Americans by early next month. It would also funnel cash to businesses to help keep workers on payroll as widespread sectors of the $21 trillion U.S. economy all but shut down.
In a memorandum, the Treasury Department proposed two $250 billion cash infusions to individuals: a first set of checks issued starting April 6, with a second wave in mid-may. The amounts would depend on income and family size.
The Treasury plan, which requires approval by Congress, also recommends $50 billion to stabilize the airlines, $150 billion to issue loan guarantees to other struggling sectors, and $300 billion for small businesses. The plan appears to anticipate that many of the loans would not be repaid.
Taken together, the administration plan promises half of the $1 trillion to families and individuals, with the other half used to prop up businesses and keep employees on payroll.
Direct payments would go to U.S. citizens only, and would be “tiered based on income level and family size.” The two payments would be identical, with the second wave starting by May 18.
The Treasury outline provides a basis for lawmakers to work from in an unprecedented government response and is likely to be broadened to include additional emergency funding for federal agencies.
The price tag for the upcoming economic package alone promises to exceed Treasury’s $1 trillion request, a rescue plan not seen since the Great Recession. Trump is urging Congress to pass the eye-popping stimulus package in a matter of days.
The Senate plans to remain in session until the third coronavirus bill passes, with weekend sessions possible. But the House will have its own version and for now isn’t slated to return until Tuesday, and any final compromise measure probably won’t reach Trump’s desk until late next week at the earliest.
Economists say the country is probably already in recession and the stock market continued its free fall Wednesday. The panic has many lawmakers shedding their ideological baggage to grapple with an enormous undertaking for a crisis that exceeds the scope of the 2008 financial panic — a virtual weekslong shutdown of many businesses and unemployment that could spike to 20% by some estimates.
At the Capitol on Wednesday, Senate Majority Leader Mitch Mcconnell prepared his colleagues for unprecedented steps to deal with the epidemic’s assault on the economy.
“I will not adjourn the Senate until we pass a far bolder package,” Mcconnell said. “We aren’t leaving until we deliver.”
But first, the Senate approved a $100 billion-plus House-passed package of sick pay, emergency food aid, free testing and more money for Medicaid, putting it back on track for Trump’s signature — despite Republican objections over the potential impact on small businesses saddled with a new mandate to pay sick leave. The government would reimburse businesses, but business advocacy groups say the plan isn’t workable for many small firms. Still, only eight Republicans voted no.
“This legislation is not perfect, but we cannot let the perfect be the enemy of the good,” said GOP Sen. Todd Young of Indiana.
Treasury proposed two $250 billion cash infusions to individuals: A first set of checks issued starting April 6, with a second wave in mid-may. The amounts would depend on income and family size.