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Day 10 of Stimulus Stalemate Yields Concessions From Both Parties
Republican and Democrat leaders appear to finally be willing to make concessions. This comes in an effort to finalize the next stimulus package. Meanwhile, President Trump has hinted that he may use an executive order to push through his own stimulus plan.
There are rumors swirling around Washington that Trump has met with his key advisers. He is also reportedly considering an executive order to pass his own stimulus bill. Indications are that the bill would include a payroll tax holiday and an extension of unemployment benefits. It would also include a moratorium on evictions and another round of stimulus checks for most Americans.
An Unexpected Move
Trump is considering the unorthodox move in an effort to sidestep the Democrats' efforts to hurt the economic recovery by delaying the passing of the next stimulus bill.
President Trump’s only focus is on the economic recovery, says White House economist Joe Lavorgna during an interview yesterday with “America's Newsroom.”
“The president is just trying to work in the best interests of the American people and trying to get the economy moving. We have reopened and been very successful,” he said.
Lavorgna added, “The president right now is hyper-focused on getting a deal done because while we have this V-shaped boom, why not take out an insurance policy and solidify what looks like we're going to see, a record second-half economy. The Democrats have fought against it.”
Trying to End the Stalemate
Recent meetings between House Speaker Nancy Pelosi, Senate Minority Leader Chuck Schumer, Treasury Secretary Steven Mnuchin and White House chief of staff Mark Meadows have resulted in what Schumer calls “concessions” from both sides.
According to reports, the Trump administration has offered to extend the additional federal unemployment insurance until December at $400 per week. This is lower than the previous amount of $600 per week. Senate Republicans have proposed a different plan. Their plan would pay unemployment insurance at $200 per week through September. Then, it would change the benefit to 70% wage replacement once states were able to update their unemployment systems.
In a small sign of compromise, Mnuchin and Meadows offered to extend a moratorium on evictions from federally backed housing into December. Meanwhile, Democrats reduced their funding request for the U.S. Postal Service from $25 billion down to $10 billion.
There remains no agreement on other Democratic requests like aid for state and local governments. No deal has also been made funding for schools, and assistance for food, rent and mortgage payments.
Some Republican Senators, like Marco Rubio, appear willing to sign a bill that includes concessions for Democrats. They are willing to do so in an effort to get something approved.
Appearing on CNBC’s “Squawk Box” yesterday, Rubio said, “We have to act. We have to do something. And that will require us to vote for a bill that has things in it that I may not necessarily like.”
Rubio did say “there’s a limit” to what concessions he would accept. Additionally, those don’t include much of the $3 trillion legislation House Democrats passed in May.
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