House to Return to Session; More CARES Act Cash to Come?
Next week Speaker of the House Nance Pelosi plans to have the House return to Washington, D.C., to join the Senate back in session. With the record high unemployment numbers, the balance between economic workforce stimulus and another round of Coronavirus relief seems to be shifting towards one more replenishment of the CARES Act. A potential bone of contention in a fifth economic bill is whether or not the bill should include monies for state and local governments.
The unemployment numbers (see page 1) combined with reports of long lines for food banks is focusing the Washington debate on extending unemployment benefits and at least looking at one more stimulus check to most Americans. Furthermore, the primary unemployment benefit comes from state funding and most states are running short of unemployment money.
Speaker Pelosi is reportedly working on a $2 trillion package that would likely be billed as CARES Act 2 and include payments to individuals and state and local governments.
Another question I will be following is what demands will be made by Senate Republicans and the White House. Leader McConnell has said some sort of legal liability protection needs to be in the next bill and the President may seek some economic workforce stimulus such as the payroll tax or infrastructure in his effort to focus on Opening America.
And then there’s China
Another emerging issue is the fraying relations between China and the US. While there was some positive news on Friday after a phone conversation between China’s chief trade negotiator Vice Premier Liu He and US trade representative Bob Lighthizer, President Donald Trump continues to muse in public about some sort of renewed actions against China, as his rhetoric moves towards affixing blame for the pandemic on China.
Relations with China are a tough call for the President. The Phase 1 deal signed in January was one of the signature accomplishments of his first term, it provided much needed relief to farmers in battleground states the President must win.
However, on Friday, talking to his base on Fox and Friends, the President said: “I am having a very hard time with China” and indicated that despite the good call between the two trade teams he is undecided about the future of the Phase 1 deal.
Figure: Top Trump Tweets
Well run States should not be bailing out poorly run States, using CoronaVirus as the excuse! The elimination of Sanctuary Cities, Payroll Taxes, and perhaps Capital Gains Taxes, must be put on the table. Also lawsuit indemnification & business deductions for restaurants & ent.
— Donald J. Trump (@realDonaldTrump) May 5, 2020
Governors should let roads and highway construction begin before heavy traffic starts, which will be soon. Some Governors never stopped, which proved to be very smart. They built and fixed roads during long no traffic periods. Also, saved big dollars!
— Donald J. Trump (@realDonaldTrump) May 5, 2020
