The US government is running out of time to approve the second coronavirus bailout package, Congress has been postponed until next week, and the Biden administration is focusing on taking office in January.
So where are Americans worried about another federal stimulus, the first cash payments distributed this spring? So far, I’m stuck.
Sure, lawmakers were able to pass a reduced stimulus bill when they returned to Washington, DC on November 30, but most economists were $ 2.2 trillion in coronavirus aid, bailout and economics. We believe it is unlikely to comply with the Security (CARES) Act. He signed the law in March and provided most Americans with a $ 1,200 check.
Democrats and RepublicansOn some important issues, such as funding hundreds of billions of dollars in states and cities that have suffered reduced tax revenues during the coronavirus pandemic.
Even if Congress passes the aid bill early next month, it could take weeks for the IRS to electronically deposit funds into people’s bank accounts, and mailing millions of paper checks is far less. There are few. It took 1-3 months for most Americans to receive so-called economic impact payments after the bill was passed this spring.
It will leave many homes and businesses hangingBy the end of the year and the national eviction moratorium to the New Year.Number of Americans applying for unemployment assistance Continuing, there are signs that the economic recovery is slowing down.
Nancy Vanden Horten, chief economist at Oxford Economics, said in a report that millions of Americans were “heading into a harsh winter as safety nets expire.” “We are pessimistic about the outlook for significant short-term financial relief, saying that some social safety net programs may expire and affect millions of households across the country. I’m afraid. “
Experts pass a bill that Congress will fund the federal government after December 11 to avoid a government closure, rather than trying to break the months’ deadlock on exciting funding. I think it’s likely to focus on.
Deutsche Bank economists Peter Hooper and Matthew Rusetti believe that Congress could shatter slimmed stimuli early next year. Janet Yellen, who is reportedly elected Treasury Secretary by President Joe Biden, is likely to push for a swift bill, economists told investors this week.
Still, Yellen will not assume that role until the Biden administration takes office on January 20, and will also require approval from the politically divided Senate.
A spokesman for Joe Biden’s transition team in the presidential election also swiftly said Biden, even if it meant reducing some of the Democratic priorities, such as helping local governments, the news source for Congress. He pushed back reports that he supported the bailout bill. Hill reported on Monday. “The presidential election fully supports the chair and leaders in the negotiations,” transition spokesman Andrew Bates said in a statement.
What is holding the bill?
The House of Representatives Democrats passed the updated Health and Economic Recovery Omnibus and Emergency Solutions (HEROES) Act on October 1, but the $ 2.2 trillion bill was hit by Republicans.
Among the main disagreements is whether the federal government should support underfunded cities and states to survive the massive economic blow caused by the pandemic. According to Moody’s Analytics, the crisis could cause a $ 434 billion federal budget shortfall by 2022 under the most severe scenarios, including the resurrection of the virus and the lack of further stimulus assistance.
The HEROES law provided more than $ 400 billion to state and local governments, but Republicans, including President Donald Trump, who opposed what was called a state “bailout” led by the Democratic Party. I had a problem with. But in reality, many Republican-led states and cities, such as Ohio and Texas, are also facing budget shortages, the latter looking at a $ 4.6 billion budget hole.
Democrats and Republicans are also far apart on the issue of unemployment aid, and Democrats are demanding an additional $ 600 per week renewal provided under the CARES Act. Republicans argue that despite the lack of economic data to support the claim, the strengthening of unemployment benefits is too generous to discourage people from returning to work.
The edge of the cliff
What is more certain is that millions of households are facing serious financial problems. Financial problems can only be exacerbated if aid and CARES protection ends at the end of the year.
About 6.7 million peopleIn the coming months, the National Low Income Housing Coalition and the University of Arizona report that the moratorium on federal eviction will end on 31 December. It will approach the number of people who have lost their homes due to foreclosure during the 2008 financial crisis and the subsequent recession.
And almost 12 million unemployedThe day after Christmas, according to an analysis by the Century Foundation, a progressive think tank. Oxford Economics said on Tuesday that the cutoff could reduce total household income by about $ 19 billion a month and slow down the economy, potentially lowering overall consumer spending.
This month, more than 125 economists signed an open letter, urging lawmakers to allocate funds for stimulus checks.
“Regular direct payments help families meet their basic needs, boost state and local economies, and speed recovery,” they wrote in a letter. “Cash reaches millions of people who are financially struggling, including those who are not eligible for unemployment benefits.”
Will I have a stimulus check by December 31st?
Source link Will I have a stimulus check by December 31st?