Will a political divide keep interfering with stimulus negotiations? There’s new hope for a compromise.
Sarah Tew/CNET
Congressional leaders are now at work hammering out details of the 2021 federal budget, prior to the Dec. 11 government spending deadline. For now, however, negotiations for another economic relief bill with a second stimulus check are running on a separate track. Senate Minority Leader Chuck Schumer said this week that Republican and Democratic staff members will look to see if more economic help can be part of the federal funding for programs and services next year, NBC’s Leigh Ann Caldwell reported Thursday.
On Friday, Senate Majority Leader Mitch McConnell called for support for individuals and businesses. “American workers should not lose their jobs needlessly when a second round of the job-saving Paycheck Protection Program for the hardest-hit small businesses would make a huge difference,” McConnell said in a statement. “Our medical system should not be denied additional support, including for distributing the life-saving vaccines that appear to be on the horizon.”
McConnell’s statement comes a few days after a similar statement from Joe Biden, when the President-elect called on Congress to come together and pass the $2.2 trillion Heroes Act that the House passed in May, which includes a second check of as much as $1,200 per person for eligible Americans and additional resources such as enhanced unemployment benefits.
“We’re going into a very dark winter,” Biden said. “Things are going to get much tougher before they get easier.” Biden also has his own stimulus plan with a second stimulus check, but he can’t act on it until after he’s inaugurated on Jan. 20.
Lawmakers entering the lame-duck session between now and the Jan. 3 swearing in of the next Congress have another chance to pass more economic relief before the end of 2020. For Americans and small businesses looking to the government for help, the time to act is before the end of the year, with several federal aid programs running out at the end of December.
“There are a lot of things that are going to have to wait till Joe Biden is president, but this is not one of them,” Biden’s choice for chief of staff, Ronald Klain, said on Meet the Press.
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Next stimulus checks: What to expect
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Part of the debate is over how much each side believes we need more coronavirus relief. Conservative economists and politicians, including McConnell, see the latest signs of economic recovery as a signal that a smaller package can take the country over the hump until the COVID-19 vaccine is ready for mass distribution.
Others disagree, pointing out that the vaccine won’t be ready for most people till the middle of 2021, during which time thousands more people could die every day and the economy could once again falter.
“It is essential that this bill have sufficient funding and deliver meaningful relief to the many Americans who are suffering,” House Speaker Nancy Pelosi and Schumer wrote in a Tuesday letter to McConnell. “For the sake of the country, we ask that you come to the table and work with us to produce an agreement that meets America’s needs in this critical time.”
Here’s what we know about where negotiations stand right now, and what could happen before the end of the year.
Stimulus check negotiations could still go up in smoke if the sides in conflict can’t reach a deal.
Sarah Tew/CNET
What could happen before the Jan. 20 inauguration?
Here are some possible scenarios that could play out over the coming weeks.
A stimulus bill is completed before Jan. 20: An agreement is made, and the current House and Senate vote before the new Congress is sworn in come January. If Trump signs it into law, stimulus checks and other aid would likely begin to go out within weeks, with certain groups receiving financial help before the end of 2020.
A stimulus deal is finalized and fails in either the Senate or House: In this situation, the Democrats and Republicans could advance their own proposals that might pass in their majority chambers but fail (or fail to be considered) by the other. In this case, Congress might try again after Biden is sworn in as president.
Some funding could be included in a bill that also funds the government past Dec. 11: It’s possible that one piece of funding, for example a stimulus check, unemployment aid or an extension of the eviction stay, could make it into a bill to keep the government funded past Dec. 11 and avoid a shutdown. As sitting president, Trump would need to sign the bill into law for it to take effect.
Talks once again fall apart until after Jan. 20: If partisan differences keep a bill from forming or passing, it’s likely they’ll restart in some capacity after the inauguration in January.
To help visualize when a bill could pass, we’ve come up with four possible dates for an agreement. If a bill does pass that includes a direct payment, here’s how quickly we think the IRS could send a second stimulus check.
When could a stimulus bill or package pass?
| House votes | Senate votes | President signs |
|---|---|---|
| Dec. 11 | Dec. 12 | Dec. 13 |
| Feb. 1, 2021 (after inauguration) | Feb. 2 | Feb. 3 |
| Feb. 16 (Feb. 15 is President’s Day) | Feb. 16 | Feb. 16 |
| Mar. 15 | Mar. 16 | Mar. 17 |
Why this $2.2 trillion stimulus package is still important
On Oct. 1, the House of Representatives passed a revised Heroes Act that included a second stimulus check and additional benefits such as enhanced unemployment benefits for tens of millions of Americans. The new House bill, endorsed primarily by Democrats, was not expected to advance through the Republican-controlled Senate, and indeed has not.
It provides the framework Pelosi is working from, however, has the support of Biden and could figure into future negotiations, depending on election results that could potentially shift the balance one way or another.
The vote was thought to provide cover for House Democrats as they campaign without a new relief bill, much as the Senate did earlier in September for Republican members with its $650 billion skinny bill.
What Republicans and Democrats agree on right now
Proposals from both sides have included another stimulus payment of up to $1,200 for individuals who meet the requirements, among topics like aid for airlines, enhanced unemployment insurance and extending the Paycheck Protection Program for businesses.
Although the Senate’s targeted bills, which did not advance, did not include stimulus checks, Republicans (including those in the Senate) have supported them.
Here are more details on the biggest points of contention between the White House Republicans and the Democrats.
For more information about stimulus checks, here’s how soon you might get your second stimulus check now, what you should do to speed up the delivery of a potential second check, and what to know about the HEALS, CARES and Heroes stimulus bill proposals that could help inform a final package.