Stimulus check: Trump and Pelosi divided on $2-3 trillion relief package
The Democrats are pushing for a $3 trillion stimulus relief package, but trade advisers in the White House prefer a $2 trillion phase four stimulus package.
The Democrat-led House of Representatives approved the HEROES Act, a $3 trillion stimulus package that among other measures would give millions of eligible Americans a second round of stimulus payments to help them with the economic effects of the Covid-19 pandemic. That bill has been labeled "DOA", Dead on Arrival, by the Republican-controlled Senate because they are unwilling to pass a bill with such a high cost.
White House view of coronavirus stimulus package
The White House trade advisor Peter Navarro said on Saturday that they are targeting a phase four stimulus package focusing on American manufacturing that would be at least $2 trillion. If this bill were to be approved in Congress then it would double the $1 trillion amount that Senate Majority Leader Mitch McConnell proposed earlier this month. McConnell has been extremely reluctant to talk about measures over his $1 trillion limit.
According to Navarro the next stimulus relief package will target manufacturing jobs: "We are facing significant structural headwinds because certain service-oriented industries like entertainment, hospitality and transportation have especially been hurt because of Covid-19,” Navarro told CNN.
Navarro said that President Donald Trump likes the idea of approving a package that is at least $2 trillion and his two rules would be: Buy American, Hire American, with the idea that the economy can reshape and recover from the coronavirus pandemic that has forced many businesses to close with the loss of millions of jobs.
See also:
- Second Stimulus check: when will I know what the payment date is?
- Stimulus check: how does the government create stimulus payments
- What affects the approval of a second stimulus check bill?
- Stimulus check: will there be a second round of payments in June?
- What is known so far about the second payment of $1,200?
- What is the vacation credit and how long would it last?
Support for manufacturing jobs
“When you support more manufacturing jobs, you can create a ripple effect to create more service-sector jobs that have been dislocated from the Covid-19 pandemic,” said Navarro during an interview with CNN.
While the White House wants to target the service-sector, House Minority Leader Kevin McCarthy believes there should be an incentive in the next stimulus bill to bring manufacturing jobs to the U.S. from abroad and help the pharmaceuticals and medical supplies.
“The next stimulus bill needs to create demand, supply and investment signals to bring manufacturing to the U.S. A payroll tax cut is critical to create the appropriate incentives for employers to keep workers working and is an implicit pay raise for the workers,” Navarro said.
Democrats are united and know what they want, with their focus on the HEROES Act but the problem is that Republicans leaders and the White House have not come up with a unified position on a new recovery package to help Americans as the economy reopens.