All Eyes On Congress As New Stimulus Bill Takes Shape

The pending release of a $908 billion bipartisan stimulus in Congress on Monday (Dec. 14) is likely to trigger further frenzied rounds of talks, as sticking points remain and an end-of-the-week deadline looms.

Lawmakers from both parties have hammered out the $908 billion proposal as a rough compromise between Senate Majority Leader Mitch McConnell – who has pushed for a limited package of no more than a few hundred billion dollars – and House Democrats, who passed a $2.2 billion relief bill in October.

The bipartisan proposal, when it is finally unveiled, may actually be broken up into two pieces in order to ease the passage of at least some coronavirus relief before the end of the year, CNN reported on Sunday (Dec. 13).

As noted by PYMNTS, the first part “would be a $748 billion proposal that would include money for small business loans, jobless benefits and vaccine distribution” and that would also remove a key point of contention: whether the bill should include money for state and local aid.

The second part would split off into a separate bill two major points of contention between the two parties: a Democratic proposal to send $160 billion to cities and states and a Republican push to institute liability protections for businesses.

House Democrats have been adamant that state and local governments badly need a boost as they attempt to shoulder mounting coronavirus healthcare costs and other expenses amid the fiscal carnage wreaked by the downturn the virus has triggered.

Senate Republicans have pushed back against the proposal, characterizing it as a bailout for big-spending states and cities, while also insisting on the need to protect businesses from a potential wave of coronavirus liability lawsuits.

Another wild card is President Donald Trump’s push for another stimulus check that would go out to all workers, an element likely to be missing from the bipartisan proposal.

Trump has upped the ante, now seeking a round of $2,000 checks, up from the $1,200 payments that were part of the $2.2 trillion coronavirus stimulus package passed last spring, according to The Washington Post.