WASHINGTON — Treasury Secretary Steven Mnuchin called on Congress on Friday to work with the Trump administration to pass additional stimulus legislation by the end of the month as the coronavirus pandemic continued to inject uncertainty into how quickly the economy would recover.
WASHINGTON — Treasury Secretary Steven Mnuchin called on Congress on Friday to work with the Trump administration to pass additional stimulus legislation by the end of the month as the coronavirus pandemic continued to inject uncertainty into how quickly the economy would recover.
The request comes as the virus continues to surge in certain areas and as millions of Americans are about to see their expanded unemployment insurance benefits expire. Lawmakers are expected to soon embark on an intense stretch of negotiations over what would be the fourth significant bailout package since the virus shuttered large sections of the U.S. economy this year.
In testimony before the House Committee on Small Business, Mnuchin said that the next round of money to support the economy should be targeted to help industries that have been hardest hit by the pandemic as well as smaller businesses and low- to middle-income families. Mnuchin also said that the Paycheck Protection Program, which provides forgivable small-business loans, should be extended but with a focus on helping the restaurant, hotel, travel and hospitality sectors.
Mnuchin added that a rise in virus cases needed to be taken into consideration. Cases are rising in 39 states, according to a New York Times database.
Almost four months after Congress unanimously passed $2 trillion in relief funding, Mnuchin may find that coming to terms on a package is far more difficult than it was in March. With the two parties split over several key policy areas, finding bipartisan agreement on how to help schools safely reopen, continue to prop up businesses and support the unemployed may require significant concessions from both sides and intraparty splits.
One big sticking point is whether to send billions in additional money to state and local governments, as Democrats have insisted and Republicans have resisted.
White House officials have been debating how to structure another round of economic impact payments that would be sent directly to American taxpayers. They are also weighing whether to continue the enhanced unemployment benefit payment that Democrats say is providing a vital financial cushion and that many Republicans say is encouraging people not to return to work.
President Donald Trump has publicly called for a payroll tax cut and tax deductions for dining and entertainment expenses, but these proposals have received little support in Congress from either party.
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