TOPLINE
Former White House Chief of Staff Mick Mulvaney repeated the possibility of the long-awaited $1 trillion GOP stimulus package being a smaller deal than what was originally anticipated, with Senate Republicans potentially being prepared to kick more contentious issues down the road for a future bill as coronavirus continues to pummel the economy.
President Trump with his then-acting Chief of Staff Mick Mulvaney in January 2020.
ASSOCIATED PRESS
KEY FACTS
Mulvaney, who now serves as the chief envoy to Northern Ireland, told CNBC’s Squawk Box on Monday that Congress could rush to get the latest rescue bill passed before their August recess
In order to get something passed before recess, Republicans could propose a smaller bill and put some elements aside for a September package, Mulvaney added.
Mulvaney’s comments align with similar ones made by Treasury Secretary Steve Mnuchin on Fox News Sunday.
Republicans made clear over the weekend that extending federal unemployment benefits was a priority for this week’s bill, but they are likely to propose capping the payments at 70% of each worker’s lost wages, as opposed to continuing the $600 weekly flat rate.
House Speaker Nancy Pelosi, D-Calif., told CBS on Sunday that the flat unemployment payments are preferable because of their “simplicity,” while the GOP believes the $600 payments disincentivize people from returning to work, as some workers are making more money than their lost wages.
Also at stake in the GOP’s proposal: another round of $1,200 stimulus checks, an extension of the federal eviction moratorium, additional funds for testing, funds for schools (potentially reliant upon physically reopening), aid for state and local governments and liability protections for businesses.
Crucial quote
“What the Republicans are talking about is something that equals a year’s worth of discretionary spending in the U.S.,” Mulvaney told CNBC Monday of the GOP’s $1 trillion plan, to put the value of the proposal into perspective. In comparison, a rescue bill passed by House Democrats in May, the HEROES Act, is valued at $3 trillion.
What to watch for
The text of the GOP proposal, which is expected sometime on Monday.
What we don’t know
What issues Republicans might leave for Congress to debate for future rescue packages.
Key background
The upcoming rescue package will be the fifth such piece of legislation from Congress since the coronavirus pandemic wreaked havoc on American jobs and public health earlier this year. Mulvaney and Mnuchin’s comments about making a smaller deal this week, and pushing other issues into future bills, contradicts Sen. Majority Leader Mitch McConnell, R-Ky., who previously vowed that this package would be the last.
Further reading
Another Round Of $1,200 Stimulus Checks Coming, Trump Officials Say (Forbes)
Pelosi Criticizes Stimulus Proposal Giving Workers 70% Of Their Wages (Forbes)
Trump Officials Say Unemployment Payments Are Priority For Stimulus Package (Forbes)
Unemployment Payments Could Be Delayed Up To 20 Weeks Under GOP Proposal (Forbes)
$600 Unemployment Check Likely To Be Slashed—But GOP Can’t Decide How Much (Forbes)
Unemployment Checks Could Drop Below $200 Under GOP Stimulus Plan (Forbes)
Here’s What Republicans Are Likely To Propose For The Next Stimulus Package (Forbes)
Full coverage and live updates on the Coronavirus