Even if it includes an incentive check for $ 600 – half the previous amount – or some other amount, the fact that it took eight months of painstaking negotiations to get to this point pulls off the looming deadline that has been shifted many times , a line underneath the fact that in a divided Congress, compromise is difficult to achieve.
Both Republicans and Democrats recognize that December’s stop-gap solution is not enough, and that more economic stimulus should be introduced in 2021. The best hope for a bigger one, and the accompanying package, could amount to: .
However, there is no guarantee that a new government working with a new group of lawmakers will make faster progress on onelast January. While both the White House and the House of Representatives will be headed by Democrats, control of the Senate will depend on two second elections in Georgia on Jan. 5. The outcome of those matches will determine which side will lead the senate. It can also influence whether or not a second stimulation check is considered.
Stimulus control is popular and expensive
The IRS has said it spent about $ 270 billion to send 160 million incentive checks, but once catch-up payments are added, the total number is likely to be closer to $ 300 billion. According to a report by the Washington Post, that’s enough money to keep a second stimulus out of the current stimulus bill.
Many economists argue that now is not the time to keep federal spending in check, as the economy is struggling to get back on its feet. Instead, the federal government should try to send more aid to support the economy.
“It would be a mistake to be shy with our policy solutions during this crisis,” wrote William Gale, senior fellow in the Economic Studies program at Brookings Institution. “Congress needs to allocate more resources – trillions of dollars – for emergency relief and incentives to support people and businesses.”
For tens of millions of taxpayers, the majority of the, a quarter of which is going towards savings, according to a Census Bureau survey this summer. With President-elect Joe Biden’s warning, the country is heading for a “dark winter” – facing a spike in US coronavirus cases and an economy that continues to lose jobs – a second check would likely yield similar applications.
However, as of this summer, some Republicans in Congress have refused to fund another major aid package as the US deficit has soared, and Senate Leader Mitch McConnell has said repeatedly that any bill should have a significantly lower price tag than the $ 2.2 trillion. proposal pushed by House Democrats through the fall to gain Republican support from the Senate.
Whoever checks the Senate can make or break a second incentive check
Biden has called on Congress to provide more assistance now, in the lame-duck session, before taking office. But the president-elect said anything Washington is now sending would be “at best just a down payment” for more substantial aid. as soon as he takes office.
As a Democrat, Biden’s path to approval of economic aid – including a second check – could be much smoother if Democrats also hold both houses of Congress in the new year. In the next Congress, which begins in the first days of January, Democrats will retain a narrow majority in Parliament.
However, control of the Senate will depend on the second election in Georgia on Jan. 5 for two Senate seats. If the Democrats win both elections, the party will rule the Senate with 50 seats – 48 Democrats and two independents consulting with the party – and Vice President-elect Kamala Harris has the power to cut ties.
If Republicans win one or both seats in January, the GOP will retain control of the Senate and Biden will begin his term with a divided government, with a Republican party led by McConnell that could oppose a second check for costs.
If Republicans retain control of the Senate, the following can happen
While the twofold group of senators who worked on Decemberhinting at a possible avenue of collaboration between Biden and the next Congress, it is just as likely that Senate Republicans could try to keep spending in check if they retain control of the upper house.
When faced with a divided Congress, Biden will most likely do what each president has done when one or both chambers are in the hands of the other party, looking for areas where the two sides can find common ground. The passing of a new large-scale stimulus package may be off the table, but smaller aid proposals were aimed at specific needs – such as an increase in the minimum wage orstrongly focused on the most deprived – could find support from two parties.
Biden could also look into executive action to achieve some of his goals, just as President Donald Trump did this summer. But without spending authority (only Congress has that), Biden would be limited in without help from Congress, he wouldn’t have access to the money to send a second check.
While we wait for the new Congress and Biden’s government, here is true , which unless Congress decides to renew them and how soon you could once approved by Washington.