Congress Still Debating Over Size Of Individual Stimulus, Unemployment Checks

Lawmakers are still debating the size and scope of proposed individual payments and enhanced unemployment benefits in the estimated $908 billion economic stimulus package being hammered out on Capitol Hill.

On Monday (Dec. 14), a bipartisan group of senators unveiled a $748 billion package that would extend unemployment benefits into April 2021 and provide help for small businesses, according to Business Insider.

The bill, which is still being negotiated, would include $300 per week in enhanced unemployment benefits for up to 16 weeks and additional Payment Protection Program (PPP) funding. It will also likely include individual payments of up to $700 for millions of Americans, according to The Washington Post.

A separate proposal would provide a liability shield protecting employers from being sued over the virus, plus $160 billion in state and local aid, Business Insider added.

But some lawmakers are pushing for even larger individual stimulus checks. Such an increase would likely be paid for with funds currently earmarked for state and local aid, The Washington Post said.

On Dec. 10, Sen. Bernie Sanders (I-VT) and Sen. Josh Hawley (R-Mo.) introduced a bipartisan amendment to end-of-year legislation that calls for immediate direct payments of $1,200 per adult and $500 per child.

The Washington Post has reported that many lawmakers have been keen to keep the cost of the stimulus package below $1 trillion.

Meanwhile, economists have warned that to bounce back, consumers will need more than what’s in the current bill.

“It’s enough to avert a double-dip recession, but just enough,” Mark Zandi, chief economist at Moody’s Analytics, told The Hill.

Zandi also questioned the wisdom of cutting state and local aid to fund individual checks. That would likely result in state legislatures cutting budgets, which would in turn would lead to more layoffs and scaled-back services for those already struggling.

Zandi said that although stimulus checks are a popular idea, state and local aid is a more effective way to stimulate the economy. “Swapping out state and local aid for stimulus checks is a downgrade,” he told The Hill.