White House economic adviser Larry Kudlow on Sunday said that the next federal coronavirus relief package will include direct stimulus payments to Americans and an extension on the federal eviction moratorium.
Kudlow, appearing on CNN’s State of the Union described the $1 trillion package set to be introduced by Republicans on Monday as “very well rounded,” saying it will include a $1,200 stimulus check, temporary and reduced unemployment benefits, funds to help schools reopen, $16 billion in funding for testing and tax incentives for companies to rehire employees.
“The check is there, the reemployment bonus is there. The retention bonus is there,” Kudlow said. “There will be breaks, tax credits for small businesses and restaurants.”
Congress is set to begin negotiations on the next round of stimulus as the eviction moratorium, which barred landlords from evicting millions of renters in public and federally subsidized housing, and $600 weekly unemployment benefits passed near the onset of the pandemic expired on Friday.
House Speaker Nancy Pelosi, D-Calif., on Sunday said that Congress “can’t go home” without negotiating a deal, while also pushing to maintain $600 unemployment benefit payments.
“More than a million people have already been fired from state and local government because of the cost of coronavirus and the revenue lost from coronavirus,” she said. “If these people get fired, they go on unemployment insurance. So what money are you saving by ignoring the needs not only of the American people, but of state and local government?”
Treasury Secretary Steven Mnuchin reiterated that the Republican plan would alter the $600 unemployment payments to a package that would provide 70% wage replacement. He added that the bill would not include a payroll tax cut, which President Donald Trump has advocated for, saying that direct payments are ” a much quicker way of effectively giving everybody a tax cut.
“With the $1 trillion package, there are certain things that have time-frames that are a bigger priority. So we could look at doing an entire deal; we could also look at doing parts,” said Mnuchin.
Democrats have sought a more expansive deal, while Republicans and Trump administration officials have called for a piecemeal approach to shorten the lapse in the programs and reduced benefits.
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