Senate Republicans Introduce Approximately $1 Trillion Coronavirus Relief Bill


The plan cuts the current federal $600 weekly benefit to $200 a week through September, then to 70% of previous wage.

Senate Majority Leader Mitch McConnell (R., Ky.) billed the Republican proposal as the appropriate response , “We have one foot in the pandemic, and one foot in the recovery. The American people need more help. They need it to be comprehensive, and they need it to be carefully tailored to this crossroads. That is what this senate majority has assembled,” he said.

“We’re running out of time. but Senate Republicans just ran down the clock and tossed an air ball,” said Senate Minority Leader Chuck Schumer (D., N.Y.). The large gap of policy differences between the parties will make it difficult to come to a compromise in just a few days. Democrats are looking to pass something similar to the $3.5 trillion plan passed in the House in May. The $600 weekly addition to unemployment benefits approved in March ended for millions this weekend.

Top White House officials may break some policy items into separate bills to try to pass them more quickly, but House Speaker Nancy Pelosi (D., Calif.) has repeatedly rejected that approach.

“We’re working on an approach to make sure that unemployment benefits continue to get paid out, from what I understand from some of our states, there might have to be a two-phased approach to do that. But it’s on a state-by-state basis,” White House chief of staff Mark Meadows said Sunday.

State and local governments would get nothing under the Republican plan, though it will grant them more flexibility in using existing federal assistance. Democrats are fighting for nearly $1 trillion to state and local governments to fill budget gaps opened by loss of revenue.

Its likely that another check will be sent out the same way the first one was which stopped with an individual with income above $75,000 in adjusted gross income, $112,500 for heads of household (often single parents) and $150,000 for married couples. The rublican plan will probably look to keep the provided $500 to each child and expand the definition of dependents eligible for aid to include adult dependents. However Democrats want to increase that amount to $1,200 per child for up to three children per family.

Republicans will allot $105 Billion to cover the costs of Universities operating during a pandemic, with some of the aid only available to schools that plan to physically reopen. Senate Democrats have proposed allocating $430 billion for schools, including $50 billion for child-care facilities.

The Republican bill will put $16 billion in new funding for testing including $9 billion in previously approved funds that will be used for testing, according to GOP lawmakers and aides. In their bill, Democrats included $75 billion for testing.

Read more here


Economics, Finance and Investing