Senate Passes $2 Trillion Stimulus
Spending package provides aid to people, businesses, health care systems and states during COVID-19 pandemic.
Western front of the U.S. Capitol.
The U.S. Senate late Wednesday night approved a $2 trillion spending bill that aims to provide economic relief for workers and businesses and to aid hospitals and states reeling from the COVID-19 pandemic.
The chamber voted 96-0 to pass the bill in an unusual display of bipartisanship.
Wisconsin Sen. Tammy Baldwin called it, “A strong step forward responding to the public health and economic crisis we face in Wisconsin.”
Baldwin, a Democrat, stressed that the work of Congress responding to the crisis was not finished. “We face a public health crisis that threatens our economy and this bipartisan response from the Senate supports families, workers, small businesses, hospitals and our public health care system,” she said. “We are all in this together, so we need to continue working together across party lines to take additional steps to get through this public health crisis, stabilize our economy and help it move forward.”
Sen. Ron Johnson (R-Wisc.) predicted the bill will have unintended negative results, despite his vote in favor of it: “We are enduring a national crisis that is no one’s fault. Across the board, elected and non-elected federal, state and local officials are making tough decisions and taking decisive action to limit the spread of the coronavirus. These decisions are being made with limited information, so the results will be far from perfect. We must accept the fact that there will be negative unintended consequences.”
The bill could become law as soon as this week. House Majority Leader Steny Hoyer (D-Md.) alerted his colleagues late Wednesday night that the House plans to consider the measure on Friday morning. The White House has signaled its support for the deal.
Senate Majority Leader Mitch McConnell (R-Ky.) praised the passage of the relief package amid a “kind of crisis that is totally unprecedented in living memory.” And Senate Minority Leader Chuck Schumer (D-N.Y.) welcomed historic legislation meant to “match an historic” crisis. “It will be worth it,” Schumer said.
If approved by the U.S. House and signed into law by President Donald Trump, the measure would be the largest economic stimulus package enacted by the U.S. government.
House Speaker Nancy Pelosi (D-Calif.) said Wednesday that House Democrats were reviewing the bill. The legislation “does not go as far” as the relief package laid out by House Democrats, she said, but “the bill has moved a great deal closer to America’s workers” than Senate Republicans’ initial plan.
Hoyer said Wednesday that he expects the bill to pass by a voice vote, which would allow most lawmakers to stay in their districts due to limited flight options and stay-at-home orders in some states.
A significant piece of the Senate’s plan is a dramatic increase in unemployment insurance benefits. That would include about $600 per person per week in federal money, which would be in addition to what people get from states.
That portion of the bill became a sticking point in the negotiations. Some Senate Republicans, including Sen. Lindsey Graham (R-S.C.) argued that the unemployment benefits would disincentivize people from working. Graham called the provision “Bernie Sanders on steroids,” Business Insider reported.
Individuals would also receive direct checks of $1,200 per person for many adults and $500 for dependent children. The amounts would be less for those with higher incomes and could be sent out within the coming weeks, Pennsylvania Republican Sen. Pat Toomey told reporters on Wednesday.
The package also includes nearly $380 billion to boost small businesses. Through that program, loans to cover payroll and other necessary business costs would be available to companies that employ up to 500 people. Those loans could ultimately be forgiven, Toomey said, “so what it really means is the federal government is paying the payroll for small businesses.”
The Senate bill also includes about $100 billion that would go directly to hospitals and other health care providers.
Another $500 billion would go toward a lending fund for industries, cities and states. Medium- to large-sized companies could receive a 50% tax credit toward their payroll.
States would receive $150 billion that would be allocated principally by population, Toomey said. State governments would have broad discretion on how to spend their share in response to the COVID-19 pandemic.
This bill, if enacted, would mark the third major coronavirus response package finalized in recent weeks as Washington has scrambled to buoy the health care system and provide economic relief. But it’s not expected to be the last legislation aimed at tackling the crisis.
McConnell said senators aren’t scheduled to reconvene until Monday, April 20. But he added that lawmakers would “stay nimble” if circumstances change.
Schumer said on the floor late Wednesday night, “None of us can know when this plague will pass.”
Reprinted with permission of Wisconsin Examiner.
According to some of what I’ve read, especially info provided by David Dayen of the American Prospect, this is actually a $6T bailout. The $500B for the “lending fund” is actually a 10 percent deposit for a $4.25 trillion “money cannon”. As David Dayen writes,
The bill would establish a $500 billion fund designed to bail out large corporations hit hard by the coronavirus crisis. Around $75 billion of the program, which would be controlled by the Trump Treasury Department, is earmarked for the airline industry.
But, Dayen wrote, the “enormity of this bailout is being under-reported.”
“The other $425 [billion] helps capitalize a $4.25 trillion, with a T, leveraged lending facility at the Federal Reserve,” Dayen said. “So it’s not a $2 trillion bill, it’s closer to $6 trillion, and $4.3 trillion of it comes in the form of a bazooka aimed at CEOs and shareholders, with almost no conditions attached.”
Wall Street would never let a good crisis go to waste.