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Congress stalled on stimulus talks as millions face a ‘benefits cliff’

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“If we’re going to get another round of encouragement, I can’t imagine it won’t be involved,” said Michael Strain, director of economic policy studies at the right-leaning think tank American Enterprise Institute, a Subsidies of new weekly.

However, Strain said he feels “it is certain that we will get another round.”

No momentum symbol

Senate Majority Leader Mitch McConnell, R-Ky.

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It has been nine months since President Donald Trump signed the $ 2.2 trillion KRES Act, while the last piece of relief legislation passed by Congress has been signed.

Senate Leader Mitch McConnell, R-Ky., Said after the election a few weeks ago that a stimulus deal for the Senate is “job one”.

Job growth is slowing at a time when long-term unemployment is on the rise and state officials are imposing some trade restrictions to prevent growing coronovirus infections.

Luckily many areas across the country have far to go.

Mark hamrick

Senior Economic Analyst at Bankrate

But Democrats and Republicans appear firmly entrenched in their respective negotiating positions.

McConnell wants to pass a targeted bill with a total price tag near $ 500 billion, while House Speaker Nancy Pelosi is aiming for a comprehensive package north of about $ 2 trillion. President-Elect Joe Biden called on Congress to pass a bill before its inauguration in January and publicly sided with Democrats over the overall size of a package.

Spokespeople for Biden, McConnell and Pelosi did not request comment for this story.

“I don’t think there’s any sign of visible momentum,” said Mark Hamrick, a senior economic analyst at Bankrate. “This is an example after Lucy, who moved football before Charlie Brown kicked.”

House Speaker Nancy Pelosi, D-California.

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Some are hoping that the relief measures are linked to a spending bill that should be passed by Congress by 11 December so the government can shut down.

“Most likely to move is the budget [legislation], “Said Andrew Stattner, a senior fellow at the Century Foundation and a progressive think tank.

$ 600 boosts unemployment

In the absence of a federal increase, unemployment benefits typically replace about half of workers’ lost wages, up to the dollar cap, which varies by state.

According to the Labor Department, states paid $ 318 a week (about $ 1,300 per month) in unemployment benefits to the average person in October. Some get very little.

“Luckily many areas across the country have far to go,” Hamrick said.

Strain said a reforming economy could change that dynamic, however, and could lead to such subsidies to create a disinfectant to work among the unemployed. He said Republicans are more likely to approve a weekly increase in the range of $ 250 to $ 400.

This would be in line with prior policies of the Trump White House.

The president gave a $ 300 weekly boost through Lost Wages Assistance, an executive program created in early August. Using federal disaster-relief funds paid up to six weeks of benefits, although hundreds of thousands (roughly the lowest-income ones) were ineligible. Treasury Secretary Steven Menuchin offered a $ 400-a-week agreement during subsequent negotiations in October.

According to Hamrick, $ 400 is likely to be the minimum asking for Democrats, who have supported a second $ 600 weekly increase in any new relief package.

“The agreement may take a number of different paths,” he said. “Unfortunately for the economy and political world, we are like an epidemic purifier.”

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