According to CBS News, the government only has a matter of time to approve a second round of coronavirus relief since Congress is adjourned until next week. So, where does that leave Americans who counted on a second stimulus check? For now, stuck in limbo.
Economic experts believe that lawmakers can pass a scaled-down stimulus bill when they return to Washington, D.C. on November 30. Still, they do believe that it is unlikely to match the $2.2 trillion CARES Act that was signed into law in March and gave $1,200 to many Americans.
Democrats and Republicans still remain apart on several key issues. Even if Congress does pass an aid bill in December, it could take weeks for the IRS to electronically deposit funds into people’s bank accounts, much less distribute them via the mail.
It is reported that millions of people are set to lose their unemployment benefits by the end of the year, and nationwide eviction moratoriums are set to lapse in the new year. The number of Americans applying for jobless aid has risen for the second week in a row.
Economic experts think that, rather than concentrating on stimulus funding, Congress will most likely focus on passing legislation to finance the government and avoid a shutdown.
The Deutsche Bank economists believe Congress could get a slimmed-down package early next year. They say that President-Elect Joe Biden’s choice for Treasury secretary, Janet Yellen, would likely push for that to happen quickly. However, the president-elect’s administration will not be ushered in until January 20, and Yellen’s position would require approval from the Senate.
On October 1, it was reported that the House Democrats passed an updated Health and Economic Recovery Omnibus and Emergency Solutions (HEROES) Act. Still, the $2.2 trillion bill ran into opposition from Republican lawmakers.
The parties’ main disagreements included whether the federal government should help cash-strapped cities and states that the economic strain caused by the pandemic. The HEROES Act would have provided more than $400 billion in funding for state and local governments.
The two parties also still remain far apart on the issue of unemployment aid.