Inside the House of Democrats, a $ 1.2 trillion rescue package + coronavirus relief

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Democrats in the House could bring their Phase 4 coronavirus (CARES 2) rescue package for a vote this week – but, for the time being at least, that is not going anywhere.

The progress: The Democrats have designed a package of more than $ 1.2 trillion without contributions from the White House or the Hill Republicans, congressional aides told their plans.

  • GOP leadership says it is still waiting for billions of aid allocated in the first $ 2.2 trillion CARES law to come out.
  • The White House says it wants to assess the economic impact of the reopening before adopting another major stimulus package.

But the Democrats in the House see the proposal as a way to set a marker of their priorities and to push Republicans in Congress and the White House toward more economic relief for individuals, state and local governments and the US postal service.

  • President Nancy Pelosi (D-California) and her caucus also want to show voters that they are still working, despite the fact that MPs remain in their district.
  • These views could be politically important given the Senate’s decision to return to Washington last week. (House Republicans blame Democrats for staying home in their neighborhood when they say they should be at work.)

Details: Legislation, which is still under development and subject to change, should include:

  • About $ 1 trillion for state and local governments. They want to divide this money into different sources of income to ensure that each community can access it.
  • More money for hospitals and COVID-19 tests.
  • About $ 25 billion to keep the US postal service afloat.
  • Expanded nutritional benefits, Medicaid funding and unemployment insurance (which they call “wage guarantee”).
  • Another round of direct payments to Americans.

House Leadership It is also working to tighten guidelines on how these funds are allocated to ensure that people do not “dive” into the different pots of money, a senior Democratic official told Axios.

  • For example, they don’t want someone who receives more money for unemployment to also receive money through the Paycheck Protectikn program. However, it remains unclear whether the P3 fund will be replenished.
  • “We are trying to limit the number of overlaps so that people do not abuse the system,” said the aide.

The package will not include Protecting corporate responsibility, which Senate majority chief Mitch McConnell (R-Ky.) said is a top priority for Republicans.

  • It also won’t include payroll tax cuts, something President Trump insisted on.
  • The Democrats in the House said these two proposals did not go away.

The backdrop: This comes as the pandemic continues to stifle the US economy – which cut 20.5 million jobs in April when unemployment hit 14.7%.

Go further: Coronavirus survives stimulus

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