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Tuesday, January 19, 2021

Stimulus Check 2: Proposals Already Discussed Unsuccessfully

After eight months since the signing of the CARES Act, the discussions around Stimulus check 2 have still not progressed as Mitch McConnel and Nancy Pelosi still haven’t agreed on an additional coronavirus financial relief package.

The only massive financial support brought into effect by Congress is the package of $2.2 trillion that Trump made into law on 27th March 2020. Since that bipartisan consensus, lawmakers didn’t agree on another deal for the people.

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The support by this act helped businesses, families, and individuals but its provisions are running out. Most of the $1200 checks were delivered months ago; unemployment benefits got halved in July end and will run out on 26th December.

Other issues like the presidential election of 2020 distracted lawmakers from the deal. Stimulus check 2 negotiations got canceled because of the confirmation of Amy Coney to the Supreme Court. Election aftermath took up the past three weeks.

HEROES Act And Stimulus Check 2

Due to the economic disruption by the pandemic, another major bill was under negotiations. The HEROES Act was passed by the House of Representatives on 15th May, which included federal funding of around $3 trillion.

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This bill supplemented the previous act and included additional net safety spending, consisting of low-income individual’s job training, an increase in disabled veterans’ aid, and unemployment benefits. Also, this bill included rebates of another $435 billion that involves another series of $1200 checks.

Despite passing the House it was unlikely to pass through the Republican-led Senate. The bill got revised in October when the HEROES Act(2.0) got passed by the House but faced pressure inside the Senate. McConnell thought that the recent scenario didn’t call for a multi-trillion-dollar stimulus aid.

Stimulus Check 2
Stimulus Check 2

“Skinny Bill” Proposed By The Senate Republicans

Although coming to a deal in March, the Democrats and Republicans are quite far apart in matters of spending. The HEROES Act stood no chance of passing through the Senate and instead, McConnell tabled a $500 billion skinny bill. This package passed through the Senate but Pelosi declined to vote for this bill.

The main issue was the absence of stimulus check 2 and the lack of direct injection of cash in the Republican bill. Early this week, around 127 economic scholars and experts called for additional two series of $1200 checks to kickstart the economy via an open letter. They urged policymakers to utilize all their tools including direct payments which is the most equitable, effective, and quick way to get the economy and families on track.

Stimulus Check 2: Main Blockade In Negotiations

CARES Act being the biggest economic package in the history of America, the idea regarding sending free money to the people is not a part of traditional policies of Republicans who are presently unwilling to give out another series of checks.

This will be partly influenced by Georgia’s situation which is still left with two elections to decide the control of the Upper House for the upcoming two years. The Democrats already have control of the House and the presidency, that’s why Republicans are desperate to have the Senate.

When the Republicans lose both the control of the House and the Senate, their negotiation power will further get diminished for future discussions. With the Senate holding sessions for only three weeks, people have to be patient till the result of Georgia races. Till then, possibly no agreement regarding the stimulus check 2 package will be there.

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