Amidst loud cries from American citizens and stock market investors, the House Democrats finally announced that they have a second stimulus package ready. This stimulus plan has a price tag of $2.2 trillion.
On Thursday, Nancy Pelosi announced that the House Democrats are ready to introduce a second stimulus plan in front of the House. They hope to pass it before the 2nd of October before the House goes into recess. The head of the Ways and Means Committee, Richard Neal, will lead this bill.
Richard Neal told media sources that the second coronavirus relief bill has a price tag of $2.2 trillion. He further revealed that even though they reduced the price tag from their original $3.4 trillion stimulus package, the stimulus plan still covers most of their initial objectives. It looks like the Democrats are still pushing their Heroes Act.
Meanwhile, the Senate has tried to pass their Heals Act with the price tag of $1 trillion. However, this attempt failed during the voting stage.
As per Pelosi, the Democrats are trying to pass a bill before the November presidential elections. A second stimulus package released after the elections would be deemed too late. Pelosi informed her team that they can formalize the bill by House floor voting.
Nancy Pelosi And Steve Mnuchin Resume Second Stimulus Package Talks
While the Democrats and the Republicans are desperate to pass a second coronavirus relief package, the delay was because of major disagreements concerning the price tag of the stimulus plan. Even the White House has indicated that they will be willing to be a bit more flexible on the stimulus plan.
Steve Mnuchin, the treasury secretary, told media sources that he had tried talking to House Speaker Nancy Pelosi over 20 times over the last couple of days. It looks like the recent update on the second stimulus package is a direct result of those efforts.
While millions of Americans were desperately waiting for the second round of stimulus money, the talks had stopped earlier this year. On top of that, the Republican Party has delayed all proposals after the Heroes Act. The original Heals Act could not be passed to the Senate as several factions spoke out against it. Even fiscal conservatives disagreed with the Heals Act, saying that it will further add to the surmounting national debt.
The Skinny Bill revealed by the Republican Party reduced the initial $1 trillion price tag to $300 – $500. This bill was dismissed by the Democrats. Church Schumer even called the bull “emaciated.” The skinny bill managed to get 52 votes. However, it failed to even reach the Senate.
What Will The Second Stimulus Package Provide?
No details have been revealed yet except the fact that a second stimulus plan has been finalized by the Democrats.
However, keeping in mind that the Coronavirus relief bill price tag comes to $2.2 trillion, it is likely that not many essential features have been scrapped. One thing that is guaranteed is that the Republicans will not be happy about the proposal. But since everyone is desperate to pass a stimulus package at the moment, this bill might just make it.
If we consider the initial coronavirus relief bill proposed by the Democrats, we can safely assume that stimulus money for each American, independent business aid, funds for states and cities, and rental and unemployment assistance will be included.
If we consider another scenario, it could also be possible that the House Democrats have come up with a proposal that appeals to both sides. Recently, a bipartisan caucus had proposed a second stimulus package worth $1.5 trillion. This means that there are several Republicans who are willing to agree on $1.5 trillion. This bipartisan second stimulus package was approved by the White House as well.
Stock Market Investors Cry Urgent Need For Coronavirus Relief Bill
The urgency to pass a second stimulus plan seems to be accelerated by the fact that millions of citizens and business owners are becoming more vocal about the need for financial aid.
The lawmakers in Washington are also receiving heavy criticism over their inability to come to any agreement.
Madeline Dean spoke with The Hill and said that it would be embarrassing to go back home without securing stimulus money for many essential workers in need. She also mentioned that many families and independent businesses are in dire need of financial aid at the moment.
Derek Kilmer also reported that most of the House members are just eager to have a stimulus plan passed that will aid their constituents.
A Second Stimulus Package By 2nd October
While the strings are tight on the White House as well as the Washington lawmakers, it looks like the Democrats just need to show a desire to negotiate.
Ultimately, the fate of the second stimulus package is upon both the House and the Senate. To secure an easy passage, Nancy Pelosi and her team will have to heat things up in the Capitol Hill. While some Republicans are showing signs of folding, we should not be too quick to judge the scene. It’s possible that stimulus plan talks will stall once more, which will deprive millions of US citizens of financial security.
Whatever be the case, this latest second stimulus package update from Washington DC comes as a relief to the US economy in general.