The last fight on thebefore 2020, a Hail Mary was closed . It failed. But now a new one whether a third direct payment is charged to the new House of Representatives, the Senate and the administration, the latter of which passes to the elected president .
Biden will take office withfor how to see the country through the running . He has the “a down payment – a major down payment – for what is due in late January and early February.”
How much congressional support Biden will have for his plans and one more direct payment has yet to be determined. While both the House and White House will be in Democratic hands, the effects of the vote are expected to determine whether Congress considers a larger stimulus package and perhaps a third payment this year.
The party running the Senate can make or break a bigger stimulus check
As a Democrat, Biden’s path to approval of economic aid – including a third check – could be much smoother if Democrats also hold both houses of Congress this year. In the next Congress, Democrats will retain a narrow majority in Parliament.
However, control of the Senate depends on the second election in Georgia on January 5 for two Senate seats. If Democrats win both seats, the party will run the senate by a hair. It would have 50 seats – 48 Democrats and two independents consulting with the party – with Vice President Kamala Harris having the power to cut ties.
If Republicans win even one seat, Republicans retain control of the Senate and Biden begins his term with a divided government. In this outcome, the Senate would again be headed by Senate Majority Leader Mitch McConnell, who opposed raising payments from $ 600 to $ 2,000 in the closing days of the current Congress, as well as a larger general stimulus package. .
Stimulus control is popular, but expensive
In the days leading up to the Jan. 5 second round, the two Republican candidates, Kelly Loeffler and David Purdue, both reversed their course and supported the $ 2,000 incentive checks that Trump vocally supported. It’s not clear what would happen if one or both were chosen, but one thing is known: stimulus controls add up.
The IRS said it spent about $ 270 billion last year to send 160 million stimulus checks in the first round, but it is likely that once catch-up payments are added, the total number will be closer to $ 300 billion.
Many economists have argued 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.
“Being timid in our policy solutions during this crisis would be a mistake,” said William Gale, a senior fellow in the economic studies program at Brookings Institution, on Dec. 16. “Congress should 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 Biden’s warning, the country is heading for a “dark winter” – facing a spike in coronavirus cases in the US and an economy that continues to cut jobs – a second check would likely yield similar applications.
However, as of this summer, some Republicans in Congress have refused to fund major aid packages as the US deficit has grown. “We have a limited amount of resources,” said Republican Senator John Thune on Jan. 1, protesting the Senate’s approval of a $ 2,000 payment. “This is borrowed money.”
If Republicans retain control of the Senate, the following can happen
A group of Republican and Democratic senators who laid the groundwork for Decemberpoints to a possible path of cooperation between Biden and the next Congress. It’s just as likely, however, that Senate Republicans could try to keep spending in check if the party retains control of the upper chamber.
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 and look for areas where the two sides can find common ground. Passing a new sweeping stimulus package could fall off the table if Republicans support more austere spending in 2021 and beyond, but smaller aid proposals targeting specific needs – such as an increase in the minimum wage or astrongly focused on the most deprived – could find support from two parties.
Biden could watch toosome of his goals, just like President Donald Trump did last summer . But without spending authority (only Congress has that), Biden would be limited in what he could accomplish without the help of 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’s when you can , now that it has been approved, and .