thefiscaltimes--2020-03-20--Goldman Forecasts a Stunning Drop in Economic Activity

Economists at Goldman Sachs are forecasting a 24 % drop in gross domestic product in the second quarter , according to a research report released Friday .
The stunning drop is expected to follow a 6 % contraction in the first quarter , the analysts said , and will be followed by a gradual return to growth in the rest of the year , with 12 % growth in the third quarter and 10 % growth in the fourth .
( All rates are on an annualized basis . )
All told , that would put full-year growth at -3.8 @ @ @ @ @ @ @ last few days social distancing measures have shut down normal life in much of the US , ” the economists said .
“ News reports point to a sudden surge in layoffs and a collapse in spending , both of which appear to be historic in size and speed .
We are therefore making further large downward revisions to our economic forecast.
” In a separate report , analysts at Bank of America asked Eric Feigl-Ding , an epidemiologist and health economist at Harvard University , for his outlook on the likely duration @ @ @ @ @ @ @ `` Americans do not understand what has happened in Wuhan and the rest of China , ” Feigl-Ding said .
“ Some Americans think everything is going back to normal in a month , and that is delusional .
The US does n't have the manpower for the containment and contact tracing/quarantine approach [ used in China ] .
We are not looking at a one month recession but a 2-3 month depression at least . ''

Economists at Goldman Sachs are forecasting a 24% drop in gross domestic product in the second quarter, according to a research report released Friday.
The stunning drop is expected to follow a 6% contraction in the first quarter, the analysts said, and will be followed by a gradual return to growth in the rest of the year, with 12% growth in the third quarter and 10% growth in the fourth. (All rates are on an annualized basis.)
All told, that would put full-year growth at -3.8% in 2020.
“Over the last few days social distancing measures have shut down normal life in much of the US,” the economists said. “News reports point to a sudden surge in layoffs and a collapse in spending, both of which appear to be historic in size and speed. We are therefore making further large downward revisions to our economic forecast.”
In a separate report, analysts at Bank of America asked Eric Feigl-Ding, an epidemiologist and health economist at Harvard University, for his outlook on the likely duration of the Covid-19 crisis in the U.S. "Americans do not understand what has happened in Wuhan and the rest of China,” Feigl-Ding said. “Some Americans think everything is going back to normal in a month, and that is delusional. The US doesn't have the manpower for the containment and contact tracing/quarantine approach [used in China]. We are not looking at a one month recession but a 2-3 month depression at least."


thefiscaltimes--2020-04-15--Big Problems for Small Business Aid Programs

The multi-billion-dollar federal programs intended to assist small businesses during the coronavirus crisis are seeing massive demand for loans and grants , but problems with funding and execution are severely hampering their effectiveness .
The largest , the $ 350 billion Paycheck Protection Program , is expected to run out of available funds by the end of the day , the Wall Street Journal reported Wednesday .
About 1.3 million applications for loans worth more than $ 289 billion had been approved by Wednesday morning , the Journal said .
Lawmakers are feuding over the best way to provide a @ @ @ @ @ @ @ , with Republicans calling for a simple bill to provide the increase and Democrats pushing for a more complicated package that includes new regulations as well as additional assistance for other groups , including hospitals and state and local governments .
As lawmakers battle over replenishing the PPP – which , it should be noted , has paid out far less in loans and grants than it has approved – another program aimed at small businesses is running into difficulties of its own .
The Economic Injury Disaster Loan program , designed to @ @ @ @ @ @ @ small business owners who have been hurt by natural disasters , received a $ 10 billion boost in the $ 2 trillion relief package that became law in late March .
In addition to loans , the EIDL program is offering small business owners grants of up to $ 10,000 that were supposed to arrive within three days .
But it has has been plagued by delays and a lack of readily available funds , CNBC reported Wednesday , leaving many applicants high and dry weeks after receiving approval .
Like the PPP @ @ @ @ @ @ @ the Small Business Administration , which has struggled to keep up with the demand from desperate entrepreneurs .
The average loan request has been about $ 200,000 , but the agency has set a maximum of $ 15,000 due to the size of the demand and the limited funding .
The total available for loans is about $ 7.3 billion , CNBC said , but demand is in the range of $ 372 billion – a massive differential .
“ Sadly , the disaster loan program is a complete disaster , ” Holly @ @ @ @ @ @ @ analysis at the National Federation of Independent Business , told The Washington Post .
Time to hurry : A survey published Tuesday by Main Street America points to the size of the problem the small business aid programs are dealing with .
If current business conditions persist for the next two months , about 3.5 million small businesses could close permanently , the survey found .
And if the recession lasts five months , roughly 7.5 million small businesses could shut their doors for good .

The multi-billion-dollar federal programs intended to assist small businesses during the coronavirus crisis are seeing massive demand for loans and grants, but problems with funding and execution are severely hampering their effectiveness.
The largest, the $350 billion Paycheck Protection Program, is expected to run out of available funds by the end of the day, the Wall Street Journal reported Wednesday. About 1.3 million applications for loans worth more than $289 billion had been approved by Wednesday morning, the Journal said.
Lawmakers are feuding over the best way to provide a $250 billion boost for the program, with Republicans calling for a simple bill to provide the increase and Democrats pushing for a more complicated package that includes new regulations as well as additional assistance for other groups, including hospitals and state and local governments.
As lawmakers battle over replenishing the PPP – which, it should be noted, has paid out far less in loans and grants than it has approved – another program aimed at small businesses is running into difficulties of its own. The Economic Injury Disaster Loan program, designed to get cash quickly into the hands of small business owners who have been hurt by natural disasters, received a $10 billion boost in the $2 trillion relief package that became law in late March. In addition to loans, the EIDL program is offering small business owners grants of up to $10,000 that were supposed to arrive within three days. But it has has been plagued by delays and a lack of readily available funds, CNBC reported Wednesday, leaving many applicants high and dry weeks after receiving approval.
Like the PPP, the EIDL program is overseen by the Small Business Administration, which has struggled to keep up with the demand from desperate entrepreneurs. The average loan request has been about $200,000, but the agency has set a maximum of $15,000 due to the size of the demand and the limited funding. The total available for loans is about $7.3 billion, CNBC said, but demand is in the range of $372 billion – a massive differential.
“Sadly, the disaster loan program is a complete disaster,” Holly Wade, director of research and policy analysis at the National Federation of Independent Business, told The Washington Post.
Time to hurry: A survey published Tuesday by Main Street America points to the size of the problem the small business aid programs are dealing with. If current business conditions persist for the next two months, about 3.5 million small businesses could close permanently, the survey found. And if the recession lasts five months, roughly 7.5 million small businesses could shut their doors for good.


thefiscaltimes--2020-04-14--Coronavirus Relief Bill Has a Special Treat for Some Wealthy Taxpayers

The roughly $ 2 trillion coronavirus relief package signed into law last month includes a provision that will cut the tax bills for some Americans who make more than $ 1 million a year , according to a new analysis from the congressional Joint Committee on Taxation .
Inserted into the legislation by Senate Republicans , the provision temporarily suspends the limits on excess business losses that can be claimed by non-corporate taxpayers , referred to as “ pass-through ” businesses .
The primary beneficiaries of the suspension are “ far and away ” hedge-fund operators and real-estate owners , @ @ @ @ @ @ @ told The Washington Post .
The JCT provided a distributional analysis of the tax law tweak , which applies to 2018 , 2019 and 2020 , with the largest effect occurring this year .
In 2020 , the total cost of the tax law change would be about $ 86 billion in lost revenue , JCT found , with more than 80 % of the benefit flowing to filers with incomes of $ 1 million or higher .
Less than 3 % of the benefit accrues to taxpayers earning less than $ 100,000 @ @ @ @ @ @ @ request of Sen. Sheldon Whitehouse ( D-RI ) and Rep. Lloyd Doggett ( D-TX ) .
In a letter , Thomas Barthold of the JCT said that while there is considerable uncertainty about how the economy will perform for the rest of the year , the analysis provides a sense of the “ potential scale of revenue changes associated with this provision.
” The Democratic lawmakers accused Republicans of pursuing tax cuts for the rich in the middle of a national emergency .
“ It ’ s a scandal for Republicans to loot @ @ @ @ @ @ @ economic and human tragedy , ” Whitehouse said in a statement .
“ Congress should repeal this rotten , un-American giveaway and use the revenue to help workers battling through this crisis.
” Doggett charged that the total cost of the provision “ is more than total new funding for all hospitals in America and more than the total provided to all state and local governments.
” Defending the provision back in March when the relief bill was being written , Alan D. Viard of the right-leaning American Enterprise Institute said it corrects @ @ @ @ @ @ @ .
“ The tax relief gives businesses badly needed liquidity during the coronavirus pandemic while also reducing the tax penalty on risky business investments , ” Viard said .
The New York Times previously reported that the special provision could cost as much as $ 170 billion over 10 years , and could benefit real estate investors close to President Trump , including his son-in-law and senior adviser , Jared Kushner .

The roughly $2 trillion coronavirus relief package signed into law last month includes a provision that will cut the tax bills for some Americans who make more than $1 million a year, according to a new analysis from the congressional Joint Committee on Taxation.
Inserted into the legislation by Senate Republicans, the provision temporarily suspends the limits on excess business losses that can be claimed by non-corporate taxpayers, referred to as “pass-through” businesses. The primary beneficiaries of the suspension are “far and away” hedge-fund operators and real-estate owners, Steve Rosenthal of the Tax Policy Center told The Washington Post.
The JCT provided a distributional analysis of the tax law tweak, which applies to 2018, 2019 and 2020, with the largest effect occurring this year. In 2020, the total cost of the tax law change would be about $86 billion in lost revenue, JCT found, with more than 80% of the benefit flowing to filers with incomes of $1 million or higher. Less than 3% of the benefit accrues to taxpayers earning less than $100,000.
The analysis was performed at the request of Sen. Sheldon Whitehouse (D-RI) and Rep. Lloyd Doggett (D-TX). In a letter, Thomas Barthold of the JCT said that while there is considerable uncertainty about how the economy will perform for the rest of the year, the analysis provides a sense of the “potential scale of revenue changes associated with this provision.”
The Democratic lawmakers accused Republicans of pursuing tax cuts for the rich in the middle of a national emergency. “It’s a scandal for Republicans to loot American taxpayers in the midst of an economic and human tragedy,” Whitehouse said in a statement. “Congress should repeal this rotten, un-American giveaway and use the revenue to help workers battling through this crisis.” Doggett charged that the total cost of the provision “is more than total new funding for all hospitals in America and more than the total provided to all state and local governments.”
Defending the provision back in March when the relief bill was being written, Alan D. Viard of the right-leaning American Enterprise Institute said it corrects a flaw in the 2017 tax legislation. “The tax relief gives businesses badly needed liquidity during the coronavirus pandemic while also reducing the tax penalty on risky business investments,” Viard said.
The New York Times previously reported that the special provision could cost as much as $170 billion over 10 years, and could benefit real estate investors close to President Trump, including his son-in-law and senior adviser, Jared Kushner.


thefiscaltimes--2020-04-14--The ‘Worst Recession Since the Great Depression’

The coronavirus pandemic is likely to cause the world economy to sink into “ its worst recession since the Great Depression , surpassing that seen during the global financial crisis a decade ago , ” the International Monetary Fund said on Tuesday .
In its 2020 World Economic Outlook , the IMF projects that , as a result of what it calls “ The Great Lockdown , ” the global economy will shrink 3 % this year before rebounding partially to grow 5.8 % in 2021 , less than pre-pandemic projections .
The U.S. economy is projected to contract 5.9 @ @ @ @ @ @ @ since 1946 , and then grow 4.7 % in 2021 .
The projections are a sharp reversal of forecasts issued in January , when the IMF said it expected global growth to come in at 3.3 % this year and U.S. growth to be 2 % .
Gita Gopinath , the IMF ’ s chief economist , told reporters that under the best-case projection , global GDP would likely suffer a cumulative loss of about $ 9 trillion over two years , an amount greater than the economies of Germany and Japan combined @ @ @ @ @ @ @ The IMF report noted that its new forecasts were subject to “ extreme uncertainty ” given the many factors that remain in question , including the path of the pandemic , progress in developing a vaccine and treatments , the effectiveness of containment measures and changes in people ’ s behavior and spending patterns .
The forecasts assume that the pandemic will fade in the second half of the year and containment measures can be “ gradually unwound , ” allowing economic activity to normalize over time .
“ Much worse growth outcomes @ @ @ @ @ @ @ ” the report said , noting that “ risks to the outlook are on the downside.
” A longer outbreak this year , a new outbreak in 2021 or a combination of the two could further reduce global GDP by 3 % to 8 % , the IMF said .
The report also noted that the United States and other advanced economies have implemented “ swift and sizable ” fiscal responses to the crisis , but that “ fiscal measures will need to be scaled up if the stoppages to economic activity are @ @ @ @ @ @ @ as restrictions are lifted is too weak.
” Goldman Sachs sees highest unemployment since WWII : Goldman Sachs analysts are forecasting a similar level of pain , projecting that the global economic hit could be four time worse than the financial crisis , with second-quarter GDP plunging 11 % year-over-year and 35 % from the previous quarter on an annualized basis , according to CNBC .
Goldman reportedly says that the U.S. unemployment rate could reach 15 % , much higher than the IMF forecast of 10.4 % — and Goldman warns that @ @ @ @ @ @ @ severity of the situation ” given that many sidelined workers won ’ t be looking for jobs and thus won ’ t be counted in the data .
On the bright side , Goldman reportedly projects a potentially “ unprecedented ” economic rebound , with third-quarter growth up 19 % from the miserable second quarter followed by a 12 % increase over the final three months of 2020 .
A decade of job gains lost in four weeks ?
We ’ ll get another reading of the turmoil in the labor market on @ @ @ @ @ @ @ number of first-time unemployment claims filed last week .
Torsten Slok , chief economist at Deutsche Bank Securities , forecasts another record-shattering number , with 8 million Americans filing new claims for unemployment benefits .
“ If our forecast is close to the mark , it would push the four-week total to almost 25 million , over 10 times the prior worst four-week period in the last 50-plus years , ” Slok wrote to clients .
A number that big would have the unemployment rate peak at more than 17 % this month @ @ @ @ @ @ @ U.S. has lost more jobs in the past four weeks that it gained since the 2008-2009 financial crisis .
Slok ’ s projections might be high , though .
Axios ’ s Dion Rabouin notes that economists Aaron Sojourner and Paul Goldsmith-Pinkham , expect a slightly less horrific 4.8 million claims this week — still enough to put the four-week total of job losses close to the 22 million total Slok says were created since July 2009 .

The coronavirus pandemic is likely to cause the world economy to sink into “its worst recession since the Great Depression, surpassing that seen during the global financial crisis a decade ago,” the International Monetary Fund said on Tuesday.
In its 2020 World Economic Outlook, the IMF projects that, as a result of what it calls “The Great Lockdown,” the global economy will shrink 3% this year before rebounding partially to grow 5.8% in 2021, less than pre-pandemic projections.
The U.S. economy is projected to contract 5.9% this year, the worst downturn since 1946, and then grow 4.7% in 2021. The projections are a sharp reversal of forecasts issued in January, when the IMF said it expected global growth to come in at 3.3% this year and U.S. growth to be 2%.
Gita Gopinath, the IMF’s chief economist, told reporters that under the best-case projection, global GDP would likely suffer a cumulative loss of about $9 trillion over two years, an amount greater than the economies of Germany and Japan combined.
Risks are to the downside: The IMF report noted that its new forecasts were subject to “extreme uncertainty” given the many factors that remain in question, including the path of the pandemic, progress in developing a vaccine and treatments, the effectiveness of containment measures and changes in people’s behavior and spending patterns. The forecasts assume that the pandemic will fade in the second half of the year and containment measures can be “gradually unwound,” allowing economic activity to normalize over time.
“Much worse growth outcomes are possible and maybe even likely,” the report said, noting that “risks to the outlook are on the downside.” A longer outbreak this year, a new outbreak in 2021 or a combination of the two could further reduce global GDP by 3% to 8%, the IMF said.
The report also noted that the United States and other advanced economies have implemented “swift and sizable” fiscal responses to the crisis, but that “fiscal measures will need to be scaled up if the stoppages to economic activity are persistent, or the pickup in activity as restrictions are lifted is too weak.”
Goldman Sachs sees highest unemployment since WWII: Goldman Sachs analysts are forecasting a similar level of pain, projecting that the global economic hit could be four time worse than the financial crisis, with second-quarter GDP plunging 11% year-over-year and 35% from the previous quarter on an annualized basis, according to CNBC. Goldman reportedly says that the U.S. unemployment rate could reach 15%, much higher than the IMF forecast of 10.4% — and Goldman warns that even its higher rate “understates the severity of the situation” given that many sidelined workers won’t be looking for jobs and thus won’t be counted in the data. On the bright side, Goldman reportedly projects a potentially “unprecedented” economic rebound, with third-quarter growth up 19% from the miserable second quarter followed by a 12% increase over the final three months of 2020.
A decade of job gains lost in four weeks? We’ll get another reading of the turmoil in the labor market on Thursday, when the government announces the number of first-time unemployment claims filed last week. Torsten Slok, chief economist at Deutsche Bank Securities, forecasts another record-shattering number, with 8 million Americans filing new claims for unemployment benefits. “If our forecast is close to the mark, it would push the four-week total to almost 25 million, over 10 times the prior worst four-week period in the last 50-plus years,” Slok wrote to clients.
A number that big would have the unemployment rate peak at more than 17% this month — and it would mean that the U.S. has lost more jobs in the past four weeks that it gained since the 2008-2009 financial crisis. Slok’s projections might be high, though. Axios’s Dion Rabouin notes that economists Aaron Sojourner and Paul Goldsmith-Pinkham, expect a slightly less horrific 4.8 million claims this week — still enough to put the four-week total of job losses close to the 22 million total Slok says were created since July 2009.


thefiscaltimes--2020-04-16--Coronavirus Relief Package Will Add $1.8 Trillion to Deficit: CBO

The Coronavirus Aid , Relief , and Economic Security Act signed into law in March will increase federal deficits by about $ 1.8 trillion over 10 years , the Congressional Budget Office said Thursday .
Most of the deficit increase will come this year .
In a letter to Senate Budget Committee Chair Mike Enzi , the CBO said the legislation would generate the following changes in the period between 2020 and 2030 : The CBO noted that while the aid package includes more than $ 2 trillion worth of financial assistance , some of that comes in the form @ @ @ @ @ @ @ affect the budget .
According to Katia Dmitrieva of Bloomberg News , the CBO analysis implies growth in the federal budget deficit of about $ 1.6 trillion in the 2020 fiscal year .
“ While the CBO didn ’ t give updated projections for the deficit in the 12 months through September , based on pre-virus projections for a $ 1 trillion deficit the new gap would likely be equivalent to more than 10 % of gross domestic product , ” Dmitrieva said .
“ That would make it the biggest by that @ @ @ @ @ @ @ as a record in dollar terms .
”

The Coronavirus Aid, Relief, and Economic Security Act signed into law in March will increase federal deficits by about $1.8 trillion over 10 years, the Congressional Budget Office said Thursday. Most of the deficit increase will come this year.
In a letter to Senate Budget Committee Chair Mike Enzi, the CBO said the legislation would generate the following changes in the period between 2020 and 2030:
A $988 billion increase in mandatory outlays;
A $446 billion decrease in revenues;
A $326 billion increase in discretionary outlays, stemming from emergency supplemental appropriations.
The CBO noted that while the aid package includes more than $2 trillion worth of financial assistance, some of that comes in the form of loan guarantees, which will not affect the budget.
According to Katia Dmitrieva of Bloomberg News, the CBO analysis implies growth in the federal budget deficit of about $1.6 trillion in the 2020 fiscal year.
“While the CBO didn’t give updated projections for the deficit in the 12 months through September, based on pre-virus projections for a $1 trillion deficit the new gap would likely be equivalent to more than 10% of gross domestic product,” Dmitrieva said. “That would make it the biggest by that measure since World War II as well as a record in dollar terms.”


thefiscaltimes--2020-04-16--Small Business Aid Program Runs Out of Money

The Small Business Administration said Thursday that the $ 349 billion Paycheck Protection Program has burned through its appropriated funds and is no longer accepting applications for loans and grants .
A second program funneling natural disaster relief funds to small businesses is also out of cash .
“ SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan ( EIDL ) -COVID-19 related assistance program ( including EIDL Advances ) based on available appropriations funding , ” a statement on the SBA website said .
The PPP quickly @ @ @ @ @ @ @ $ 2 trillion coronavirus relief package , approving applications totaling $ 349 billion in less than two weeks .
The disbursement of those funds is expected to take considerably longer , though , and the current status of payouts is unclear .
Lawmakers on Capitol Hill remain locked in a partisan stalemate over how to go about injecting another $ 250 billion into the program , which is designed to help small businesses keep workers on payroll and cover overhead .
The Senate held a brief pro forma session Thursday , but Senate @ @ @ @ @ @ @ up a GOP-backed bill that would provide an injection of funds .
He did , however , use the opportunity to blame Democrats for refusing to support his approach on the issue , a stand-alone bill that addresses only funding for the small business program rather than the broader aid package that Democrats are pushing for , which would add funding for hospitals , states and local governments .
“ This morning , the program ran out of money and shut down , just as we ’ d warned .
But even now @ @ @ @ @ @ @ , ” McConnell said .
House Speaker Nancy Pelosi said Democrats were in negotiations with Treasury Secretary Steven Mnuchin .
`` We want to support what we did with the [ Paycheck Protection Program ] but we want to make sure that as it gets more money , many more people get more access to the credit , '' Pelosi said , defending the Democratic effort to add additional aid and new regulations to the PPP enhancement bill .
What ’ s next : The stalemate will likely last at least until Monday @ @ @ @ @ @ @ the Senate .
And critics are saying that lawmakers will likely have to return to the issue once again , even after clearing the current hurdle , given the size of the problem .
`` We think at the end of the day we 're going to need upwards of $ 1 trillion in order to satisfy the demand of America 's small businesses , '' Consumer Bankers Association President Richard Hunt told Politico Wednesday .

The Small Business Administration said Thursday that the $349 billion Paycheck Protection Program has burned through its appropriated funds and is no longer accepting applications for loans and grants. A second program funneling natural disaster relief funds to small businesses is also out of cash.
“SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding,” a statement on the SBA website said.
The PPP quickly ran through the funding provided by the $2 trillion coronavirus relief package, approving applications totaling $349 billion in less than two weeks. The disbursement of those funds is expected to take considerably longer, though, and the current status of payouts is unclear.
Lawmakers on Capitol Hill remain locked in a partisan stalemate over how to go about injecting another $250 billion into the program, which is designed to help small businesses keep workers on payroll and cover overhead.
The Senate held a brief pro forma session Thursday, but Senate Majority Leader Mitch McConnell did not bring up a GOP-backed bill that would provide an injection of funds. He did, however, use the opportunity to blame Democrats for refusing to support his approach on the issue, a stand-alone bill that addresses only funding for the small business program rather than the broader aid package that Democrats are pushing for, which would add funding for hospitals, states and local governments.
“This morning, the program ran out of money and shut down, just as we’d warned. But even now, Senate Democrats are still blocking funding,” McConnell said.
House Speaker Nancy Pelosi said Democrats were in negotiations with Treasury Secretary Steven Mnuchin. "We want to support what we did with the [Paycheck Protection Program] but we want to make sure that as it gets more money, many more people get more access to the credit," Pelosi said, defending the Democratic effort to add additional aid and new regulations to the PPP enhancement bill.
What’s next: The stalemate will likely last at least until Monday, the next scheduled meeting date for the Senate. And critics are saying that lawmakers will likely have to return to the issue once again, even after clearing the current hurdle, given the size of the problem. "We think at the end of the day we're going to need upwards of $1 trillion in order to satisfy the demand of America's small businesses," Consumer Bankers Association President Richard Hunt told Politico Wednesday.


thefiscaltimes--2020-04-15--Coronavirus Relief Checks Will Be Branded by Trump

The relief checks being sent to millions of Americans will have President Trump ’ s name on them , the Washington Post reported late Tuesday .
While most of the Economic Impact Payments , worth as much as $ 1,200 per adult , are being deposited electronically , the millions of people who will receive their money in the mail will see Trump ’ s name on the bottom left of the checks .
Trump had originally asked Treasury Secretary Steven Mnuchin if he could sign the checks , according to the Post ’ s Lisa Rein , but presidents @ @ @ @ @ @ @ do so .
“ It is standard practice for a civil servant to sign checks issued by the Treasury Department to ensure that government payments are nonpartisan , ” Rein said .
Nina Olson , who served as the National Taxpayer Advocate for 18 years , said that Trump ’ s move was “ absolutely unprecedented.
” Treasury officials said Wednesday that , contrary to earlier reports , the effort to include the president ’ s name will not cause any delays in sending out the checks .
“ Thanks to hard work @ @ @ @ @ @ @ , these payments are going out on schedule , as planned , without delay , to the nation , ” the agency said in a statement .

The relief checks being sent to millions of Americans will have President Trump’s name on them, the Washington Post reported late Tuesday.
While most of the Economic Impact Payments, worth as much as $1,200 per adult, are being deposited electronically, the millions of people who will receive their money in the mail will see Trump’s name on the bottom left of the checks.
Trump had originally asked Treasury Secretary Steven Mnuchin if he could sign the checks, according to the Post’s Lisa Rein, but presidents do not have the legal authority to do so. “It is standard practice for a civil servant to sign checks issued by the Treasury Department to ensure that government payments are nonpartisan,” Rein said.
Nina Olson, who served as the National Taxpayer Advocate for 18 years, said that Trump’s move was “absolutely unprecedented.”
Treasury officials said Wednesday that, contrary to earlier reports, the effort to include the president’s name will not cause any delays in sending out the checks. “Thanks to hard work and long hours by dedicated IRS employees, these payments are going out on schedule, as planned, without delay, to the nation,” the agency said in a statement.


thefiscaltimes--2020-04-15--Trump WHO Funding Halt Draws Torrent of Criticism

President Trump ’ s announcement Tuesday that he will suspend congressionally approved funding for the World Health Organization ( WHO ) drew a torrent of criticism from Democrats , health experts , business groups and global leaders .
What Trump said : During his coronavirus briefing Tuesday evening , Trump said he would halt payments to the WHO pending a 60-to-90-day review of its pandemic response , charging that the UN agency had made a series of deadly mistakes in trying to combat the global outbreak .
Trump said his administration would “ assess the World Health Organization ’ s @ @ @ @ @ @ @ the spread of the coronavirus.
” He added : “ So much death has been caused by their mistakes.
” Wait , what is the WHO ?
Founded in 1948 and based in Geneva , it is the United Nations agency responsible for global public health .
It now has 194 member states and more than 7,000 employees in 150 offices across the globe .
During health emergencies , the WHO says it seeks to identify and mitigate risks , support the development of necessary tools and “ support delivery of essential health @ @ @ @ @ @ @ is funded through membership fees and voluntary contributions , and the United States is its largest donor .
For the 2018-2019 biennial funding cycle , the United States reportedly paid $ 237 million and another $ 656 million in voluntary contributions for a total of $ 893 million , or about 15 % of the agency ’ s roughly $ 6 billion budget .
Shifting blame : Seeking to deflect blame and fend off criticism over his slow response to the spread of the virus , Trump has joined some congressional Republicans in @ @ @ @ @ @ @ attacks in recent weeks .
He has called the WHO “ very China centric , ” criticized the group for opposing his decision in late January to restrict travel from China , and charged that the agency “ pushed China ’ s misinformation ” about the coronavirus and failed to properly investigate early claims about the virus ’ s ability to spread from person to person .
“ In effect , Mr. Trump was accusing the world ’ s leading health organization of making all of the mistakes that he has made since @ @ @ @ @ @ @ then spread rapidly , ” Michael D. Shear and Donald G. McNeil Jr. write at The New York Times .
As numerous news outlets have noted , Trump himself praised China ’ s pandemic response in January , as his administration was negotiating a trade deal with Beijing .
Global context : “ The question of whether the W.H.O .
was not aggressive enough in recommending action against the virus has been raised in other countries .
Some governments have noted that the organization ’ s leadership did not challenge China ’ s @ @ @ @ @ @ @ human-to-human transmission of the coronavirus , ” the Times notes .
“ But the W.H.O .
did issue urgent advisories throughout January about the potential dangers from the virus and announced that it constituted a ‘ public health emergency of international concern ’ a day before the Trump administration made a similar declaration.
” The blowback : “ World leaders have urged Trump to rethink the decision , with China calling for the U.S. to fulfill its obligations , Germany and New Zealand calling for unity , while Australia ’ s Prime Minister @ @ @ @ @ @ @ immune from criticism , ” Forbes ’ s Isabel Togoh notes .
While some congressional Republicans publicly supported Trump ’ s decision , condemnation for the move was widespread .
Among the reactions : • The American Medical Association called Trump ’ s decision “ a dangerous step in the wrong direction ” and urged him to reconsider .
• House Speaker Nancy Pelosi called the decision “ senseless ” and another example of Trump ’ s ineffective response to the pandemic .
“ This decision is dangerous , illegal and will be @ @ @ @ @ @ @ • WHO Director-General Dr. Tedros Adhanom Ghebreyesus said Wednesday that he regrets Trump ’ s decision .
“ The United States of America has been a long-standing and generous friend to the WHO and we hope it will continue to be so , ” he said .
• U.N. Secretary-General Antonio Guterres said in a statement that the WHO “ is absolutely critical to the world ’ s efforts to win the war against COVID-19 ” and that now is “ not the time to reduce the resources for the operations of the @ @ @ @ @ @ @ organization in the fight against the virus.
” • Bill Gates , whose Gates Foundation is among the largest voluntary donors to the WHO , criticized Trump ’ s move in a tweet : “ Halting funding for the World Health Organization during a world health crisis is as dangerous as it sounds .
Their work is slowing the spread of COVID-19 and if that work is stopped no other organization can replace them .
The world needs @ WHO now more than ever.
” • U.S. Chamber of Commerce Vice President Myron @ @ @ @ @ @ @ supports reforming the WHO , “ cutting the WHO ’ s funding during the COVID-19 pandemic is not in U.S. interests given the organization ’ s critical role assisting other countries — particularly in the developing world — in their response.
” Can Trump really halt WHO funding ?
As Pelosi ’ s comment above indicates , Democrats say withholding WHO money would be illegal .
“ President Trump is violating the same spending laws that brought about his impeachment , ” said Evan Hollander , spokesman for the House Appropriations Committee , @ @ @ @ @ @ @ It ’ s unclear exactly what mechanism Trump intends to use to withhold WHO funding , much of which is appropriated by Congress , ” CNBC ’ s Berkeley Lovelace Jr.s reported .
“ The president typically does not have the authority to unilaterally redirect congressional funding.
” The administration reportedly may argue that the president has the right to redirect WHO funds to any “ global aid ” program , a position some Democrats reportedly said may be accurate .
A senior Democratic aide told the Post that Democrats were reviewing their @ @ @ @ @ @ @ an opinion given their opinion that the President ’ s hold on Ukraine funding was illegal .
”

President Trump’s announcement Tuesday that he will suspend congressionally approved funding for the World Health Organization (WHO) drew a torrent of criticism from Democrats, health experts, business groups and global leaders.
What Trump said: During his coronavirus briefing Tuesday evening, Trump said he would halt payments to the WHO pending a 60-to-90-day review of its pandemic response, charging that the UN agency had made a series of deadly mistakes in trying to combat the global outbreak. Trump said his administration would “assess the World Health Organization’s role in severely mismanaging and covering up the spread of the coronavirus.” He added: “So much death has been caused by their mistakes.”
Wait, what is the WHO? Founded in 1948 and based in Geneva, it is the United Nations agency responsible for global public health. It now has 194 member states and more than 7,000 employees in 150 offices across the globe. During health emergencies, the WHO says it seeks to identify and mitigate risks, support the development of necessary tools and “support delivery of essential health services in fragile settings.”
The WHO is funded through membership fees and voluntary contributions, and the United States is its largest donor. For the 2018-2019 biennial funding cycle, the United States reportedly paid $237 million and another $656 million in voluntary contributions for a total of $893 million, or about 15% of the agency’s roughly $6 billion budget.
Shifting blame: Seeking to deflect blame and fend off criticism over his slow response to the spread of the virus, Trump has joined some congressional Republicans in targeting the WHO, ramping up his attacks in recent weeks. He has called the WHO “very China centric,” criticized the group for opposing his decision in late January to restrict travel from China, and charged that the agency “pushed China’s misinformation” about the coronavirus and failed to properly investigate early claims about the virus’s ability to spread from person to person.
“In effect, Mr. Trump was accusing the world’s leading health organization of making all of the mistakes that he has made since the virus first emerged in China and then spread rapidly,” Michael D. Shear and Donald G. McNeil Jr. write at The New York Times. As numerous news outlets have noted, Trump himself praised China’s pandemic response in January, as his administration was negotiating a trade deal with Beijing.
Global context: “The question of whether the W.H.O. was not aggressive enough in recommending action against the virus has been raised in other countries. Some governments have noted that the organization’s leadership did not challenge China’s assertion in mid-January that there was not human-to-human transmission of the coronavirus,” the Times notes. “But the W.H.O. did issue urgent advisories throughout January about the potential dangers from the virus and announced that it constituted a ‘public health emergency of international concern’ a day before the Trump administration made a similar declaration.”
The blowback: “World leaders have urged Trump to rethink the decision, with China calling for the U.S. to fulfill its obligations, Germany and New Zealand calling for unity, while Australia’s Prime Minister Scott Morrison said the WHO was not immune from criticism,” Forbes’s Isabel Togoh notes.
While some congressional Republicans publicly supported Trump’s decision, condemnation for the move was widespread. Among the reactions:
The American Medical Association called Trump’s decision “a dangerous step in the wrong direction” and urged him to reconsider.
called Trump’s decision “a dangerous step in the wrong direction” and urged him to reconsider. House Speaker Nancy Pelosi called the decision “senseless” and another example of Trump’s ineffective response to the pandemic. “This decision is dangerous, illegal and will be swiftly challenged,” she said.
called the decision “senseless” and another example of Trump’s ineffective response to the pandemic. “This decision is dangerous, illegal and will be swiftly challenged,” she said. WHO Director-General Dr. Tedros Adhanom Ghebreyesus said Wednesday that he regrets Trump’s decision. “The United States of America has been a long-standing and generous friend to the WHO and we hope it will continue to be so,” he said.
said Wednesday that he regrets Trump’s decision. “The United States of America has been a long-standing and generous friend to the WHO and we hope it will continue to be so,” he said. U.N. Secretary-General Antonio Guterres said in a statement that the WHO “is absolutely critical to the world’s efforts to win the war against COVID-19” and that now is “not the time to reduce the resources for the operations of the World Health Organization or any other humanitarian organization in the fight against the virus.”
said in a statement that the WHO “is absolutely critical to the world’s efforts to win the war against COVID-19” and that now is “not the time to reduce the resources for the operations of the World Health Organization or any other humanitarian organization in the fight against the virus.” Bill Gates , whose Gates Foundation is among the largest voluntary donors to the WHO, criticized Trump’s move in a tweet: “Halting funding for the World Health Organization during a world health crisis is as dangerous as it sounds. Their work is slowing the spread of COVID-19 and if that work is stopped no other organization can replace them. The world needs @WHO now more than ever.”
, whose Gates Foundation is among the largest voluntary donors to the WHO, criticized Trump’s move in a tweet: “Halting funding for the World Health Organization during a world health crisis is as dangerous as it sounds. Their work is slowing the spread of COVID-19 and if that work is stopped no other organization can replace them. The world needs @WHO now more than ever.” U.S. Chamber of Commerce Vice President Myron Brilliant said that while the business group supports reforming the WHO, “cutting the WHO’s funding during the COVID-19 pandemic is not in U.S. interests given the organization’s critical role assisting other countries — particularly in the developing world — in their response.”
Can Trump really halt WHO funding? As Pelosi’s comment above indicates, Democrats say withholding WHO money would be illegal. “President Trump is violating the same spending laws that brought about his impeachment,” said Evan Hollander, spokesman for the House Appropriations Committee, according to The Washington Post.
“It’s unclear exactly what mechanism Trump intends to use to withhold WHO funding, much of which is appropriated by Congress,” CNBC’s Berkeley Lovelace Jr.s reported. “The president typically does not have the authority to unilaterally redirect congressional funding.” The administration reportedly may argue that the president has the right to redirect WHO funds to any “global aid” program, a position some Democrats reportedly said may be accurate. A senior Democratic aide told the Post that Democrats were reviewing their options, “including asking GAO for an opinion given their opinion that the President’s hold on Ukraine funding was illegal.”


thefiscaltimes--2020-04-17--Is This How the Small Business Program Gets More Cash?

As the standoff over providing billions of additional dollars to a crucial small business aid program continued Friday , comments from House Minority Leader Kevin McCarthy pointed toward a possible deal that would provide lawmakers with a way around the impasse .
The standoff : With the $ 349 billion Paycheck Protection Program running out of funds earlier this week , Democrats and Republicans can ’ t agree on how to inject another $ 250 billion into the program , which provides loans and grants to small businesses struggling during the coronavirus crisis .
Senate Republicans want to see a @ @ @ @ @ @ @ provides the funds , while Democrats are pushing for a more complex package that provides additional funds for hospitals , food aid , and state and local governments .
Senate Majority Leader Mitch McConnell said Thursday that the two sides have made “ absolutely no progress , ” according to The Hill .
But on Friday , Rep. McCarthy told The Wall Street Journal he was willing to include the additional money for hospitals in the small business funding package that Democrats are seeking , raising hopes for a compromise deal that could @ @ @ @ @ @ @ soon as Monday .
“ Hospitals need the help .
Hospitals are the modern-day soldiers , ” McCarthy said .
“ I ’ d like to see money in there—money in the PPP and money in hospitals—that would be a very smart move right now.
” McCarthy also expressed interest in boosting the Economic Injury Disaster Loan program , a second small business aid fund that has run out of money .
Democrats reportedly agree .
Not a good time for a stalemate : CNN ’ s Phil Mattingly and Lauren Fox said @ @ @ @ @ @ @ 1,661,397 loans worth $ 349 billion in less than two weeks – has run out of cash at a particularly inopportune time .
“ Tens of thousands of businesses did not get access to the program before it ran dry , ” they wrote .
“ Those businesses , many of them teetering on the brink of failure , currently have no clear pathway to survival at the moment .
”

As the standoff over providing billions of additional dollars to a crucial small business aid program continued Friday, comments from House Minority Leader Kevin McCarthy pointed toward a possible deal that would provide lawmakers with a way around the impasse.
The standoff: With the $349 billion Paycheck Protection Program running out of funds earlier this week, Democrats and Republicans can’t agree on how to inject another $250 billion into the program, which provides loans and grants to small businesses struggling during the coronavirus crisis. Senate Republicans want to see a “clean,” single-purpose bill that provides the funds, while Democrats are pushing for a more complex package that provides additional funds for hospitals, food aid, and state and local governments.
Senate Majority Leader Mitch McConnell said Thursday that the two sides have made “absolutely no progress,” according to The Hill. But on Friday, Rep. McCarthy told The Wall Street Journal he was willing to include the additional money for hospitals in the small business funding package that Democrats are seeking, raising hopes for a compromise deal that could be taken up in the Senate as soon as Monday.
“Hospitals need the help. Hospitals are the modern-day soldiers,” McCarthy said. “I’d like to see money in there—money in the PPP and money in hospitals—that would be a very smart move right now.”
McCarthy also expressed interest in boosting the Economic Injury Disaster Loan program, a second small business aid fund that has run out of money. Democrats reportedly agree.
Not a good time for a stalemate: CNN’s Phil Mattingly and Lauren Fox said Friday that the PPP – which approved 1,661,397 loans worth $349 billion in less than two weeks – has run out of cash at a particularly inopportune time. “Tens of thousands of businesses did not get access to the program before it ran dry,” they wrote. “Those businesses, many of them teetering on the brink of failure, currently have no clear pathway to survival at the moment.”


thefiscaltimes--2020-04-20--Another $500 Billion in Coronavirus Relief Is Coming

Lawmakers are reportedly closing in on a deal to replenish the $ 350 billion program designed to assist small businesses reeling from the coronavirus pandemic .
The Paycheck Protection Program , created with the goal of keeping workers on payrolls by providing loans and grants to businesses with fewer than 500 employees , ran through all of its funding in less than two weeks , leaving millions of small business owners wondering if they would be left out in the cold .
In a bipartisan compromise , Republicans signaled they would support a bill that includes funding for programs in @ @ @ @ @ @ @ Democrats , who have pushed for a more comprehensive package , said they would accept a smaller number of additional provisions , including billions more for hospitals and new money to support testing .
The package could be worth between $ 470 billion and $ 500 billion , including : • $ 310 billion for the Paycheck Protection Program , with $ 60 billion of that set aside for rural and minority areas ; • $ 60 billion for the Economic Injury Disaster Loan program , which also focuses on small businesses ; @ @ @ @ @ @ @ elements they were seeking — most notably , aid for state and local governments — to a separate relief package to be negotiated later .
Final sticking points ?
Although a deal is reportedly close , funding to boost testing for the coronavirus has emerged as a last-minute sticking point in the negotiations , Erica Werner of The Washington Post reported Monday .
Democrats are pushing for free testing for all Americans , Werner said , but Republicans want more emphasis on state responsibility .
And Bloomberg News reports that the two parties @ @ @ @ @ @ @ health-care aid to the states .
The deal was not completed in time for a brief pro forma Senate session Monday , but the upper chamber has scheduled another meeting on Tuesday in anticipation of a vote .
House Majority Leader Steny Hoyer said the lower chamber would meet as soon as Wednesday to consider the emergency bill .
Questions about the program : Reports that some large businesses have benefited from the small business program raised questions about the design and fairness of the plan .
The legislation allows chains and franchises @ @ @ @ @ @ @ business , enabling some large , publicly traded companies — including Shake Shack , Potbelly and Ruth ’ s Chris Steak House — to receive millions in aid , even as small mom-and-pop stores have been shut out .
( Following an uproar on social media over the issue , Shake Shack founder Danny Meyer said late Sunday that the company would return the $ 10 million it received . )
“ I am concerned that many businesses with thousands of employees have found loopholes to qualify for these loans meant for small @ @ @ @ @ @ @ of Florida said Monday .
“ Unfortunately , when it comes to the PPP , millions of dollars are being wasted.
” Scott also called for a change in the rules to include a requirement that small businesses show “ substantial reduction in revenue ” related to the coronavirus before being approved to receive aid .
A record level of support : “ If the changes are signed into law this week , Congress would have approved more than $ 700 billion in emergency assistance for small businesses alone in just one month @ @ @ @ @ @ @ Washington Post .
“ That would be more than the entire $ 700 billion in bailout money approved during the 2008 financial crisis .
”

Lawmakers are reportedly closing in on a deal to replenish the $350 billion program designed to assist small businesses reeling from the coronavirus pandemic.
The Paycheck Protection Program, created with the goal of keeping workers on payrolls by providing loans and grants to businesses with fewer than 500 employees, ran through all of its funding in less than two weeks, leaving millions of small business owners wondering if they would be left out in the cold.
In a bipartisan compromise, Republicans signaled they would support a bill that includes funding for programs in addition to the Paycheck Protection Program. Democrats, who have pushed for a more comprehensive package, said they would accept a smaller number of additional provisions, including billions more for hospitals and new money to support testing.
The package could be worth between $470 billion and $500 billion, including:
$310 billion for the Paycheck Protection Program, with $60 billion of that set aside for rural and minority areas;
$60 billion for the Economic Injury Disaster Loan program, which also focuses on small businesses;
$75 billion for hospitals;
$25 billion for testing.
Democrats have reportedly agreed to push other elements they were seeking — most notably, aid for state and local governments — to a separate relief package to be negotiated later.
Final sticking points? Although a deal is reportedly close, funding to boost testing for the coronavirus has emerged as a last-minute sticking point in the negotiations, Erica Werner of The Washington Post reported Monday. Democrats are pushing for free testing for all Americans, Werner said, but Republicans want more emphasis on state responsibility. And Bloomberg News reports that the two parties still disagree over the formula to distribute health-care aid to the states.
The deal was not completed in time for a brief pro forma Senate session Monday, but the upper chamber has scheduled another meeting on Tuesday in anticipation of a vote. House Majority Leader Steny Hoyer said the lower chamber would meet as soon as Wednesday to consider the emergency bill.
Questions about the program: Reports that some large businesses have benefited from the small business program raised questions about the design and fairness of the plan. The legislation allows chains and franchises to count each location as a separate business, enabling some large, publicly traded companies — including Shake Shack, Potbelly and Ruth’s Chris Steak House — to receive millions in aid, even as small mom-and-pop stores have been shut out. (Following an uproar on social media over the issue, Shake Shack founder Danny Meyer said late Sunday that the company would return the $10 million it received.)
“I am concerned that many businesses with thousands of employees have found loopholes to qualify for these loans meant for small businesses,” Republican Sen. Rick Scott of Florida said Monday. “Unfortunately, when it comes to the PPP, millions of dollars are being wasted.” Scott also called for a change in the rules to include a requirement that small businesses show “substantial reduction in revenue” related to the coronavirus before being approved to receive aid.
A record level of support: “If the changes are signed into law this week, Congress would have approved more than $700 billion in emergency assistance for small businesses alone in just one month,” said Jeff Stein of The Washington Post. “That would be more than the entire $700 billion in bailout money approved during the 2008 financial crisis.”


thefiscaltimes--2020-04-16--A Decade of Job Growth Wiped Out in Four Weeks

The longest stretch of continuous monthly job gains in U.S. history started in October 2010 and continued until this March , when the coronavirus pandemic forced a sudden shutdown of most of the economy .
Over those 113 months , the U.S. economy added more than 22 million jobs .
Over the past four weeks , nearly as many have been wiped out .
A decade of record labor market expansion that dropped the unemployment rate to a half-century low has been undone just that quickly .
Another 5.2 million Americans filed for unemployment benefits last week , the Labor @ @ @ @ @ @ @ down from 6.6 million the previous week and nearly 6.9 million the week before that , suggesting that the pace of new filings may have peaked , though some economists warn that it might still be weeks before new jobless claims fall to much lower levels .
The economic devastation has been staggering : About 13 % of the labor force has applied for unemployment assistance since mid-March , far higher than any previous four-week stretch , according to The Wall Street Journal .
Until the pandemic , the largest number of Americans @ @ @ @ @ @ @ four-week period was 2.7 million , or 2.4 % of the labor force , in the fall of 1982 , according to the Journal .
What ’ s more , the 22 million jobs lost since the middle of March may undercount the actual total .
State unemployment offices are still struggling to process the surge of new claims and most gig workers who Congress made eligible for unemployment assistance as part of the coronavirus relief package passed last month haven ’ t yet been able to apply for aid .
“ It @ @ @ @ @ @ @ all know , that the economy is falling off a cliff at an unprecedented rate , ” Jay Bryson , the acting chief economist at Wells Fargo , told NBC News .
Nearly 12 million people continued to receive unemployment insurance during the week ending April 4 , also a record .
Economists will be watching that number to see how quickly the economy is rebounding and people are returning to their jobs or finding new ones .
“ If continued claims three months from now remain very , very high , it @ @ @ @ @ @ @ bouncing back as fast as we had hoped , ” Bryson told NBC News .
How high will the unemployment rate go ?
The government will release official unemployment data for April on May 8 , and the number is certain to be dreadful .
“ The U.S. unemployment rate is already over 20 percent , according to two professors who are tracking the data in real time , ” The Washington Post reports .
“ It is expected remain close to 10 percent through the end of the year , meaning 1 @ @ @ @ @ @ @ of work at the holidays , the National Association for Business Economics says.
” The hardest-hit states : Every state has been hit by the downturn , but the highest rates of new jobless claims have come in Hawaii , Michigan and Rhode Island , where more than 20 % of workers have filed for unemployment .
The Journal reports that the most claims were filed in California ( 2.8 million , or 14.5 % of the state labor force ) , followed by Pennsylvania ( 1.3 million , or 19.8 % of @ @ @ @ @ @ @ million , or 12.4 % of workers ) .

The longest stretch of continuous monthly job gains in U.S. history started in October 2010 and continued until this March, when the coronavirus pandemic forced a sudden shutdown of most of the economy. Over those 113 months, the U.S. economy added more than 22 million jobs. Over the past four weeks, nearly as many have been wiped out. A decade of record labor market expansion that dropped the unemployment rate to a half-century low has been undone just that quickly.
Another 5.2 million Americans filed for unemployment benefits last week, the Labor Department said Thursday. That’s down from 6.6 million the previous week and nearly 6.9 million the week before that, suggesting that the pace of new filings may have peaked, though some economists warn that it might still be weeks before new jobless claims fall to much lower levels.
The economic devastation has been staggering: About 13% of the labor force has applied for unemployment assistance since mid-March, far higher than any previous four-week stretch, according to The Wall Street Journal. Until the pandemic, the largest number of Americans to apply for jobless benefits over a four-week period was 2.7 million, or 2.4% of the labor force, in the fall of 1982, according to the Journal.
NPR
What’s more, the 22 million jobs lost since the middle of March may undercount the actual total. State unemployment offices are still struggling to process the surge of new claims and most gig workers who Congress made eligible for unemployment assistance as part of the coronavirus relief package passed last month haven’t yet been able to apply for aid.
“It is showing us what I think we all know, that the economy is falling off a cliff at an unprecedented rate,” Jay Bryson, the acting chief economist at Wells Fargo, told NBC News.
Nearly 12 million people continued to receive unemployment insurance during the week ending April 4, also a record. Economists will be watching that number to see how quickly the economy is rebounding and people are returning to their jobs or finding new ones. “If continued claims three months from now remain very, very high, it means that the labor market is not bouncing back as fast as we had hoped,” Bryson told NBC News.
How high will the unemployment rate go? The government will release official unemployment data for April on May 8, and the number is certain to be dreadful. “The U.S. unemployment rate is already over 20 percent, according to two professors who are tracking the data in real time,” The Washington Post reports. “It is expected remain close to 10 percent through the end of the year, meaning 1 in 10 people would still be out of work at the holidays, the National Association for Business Economics says.”
The hardest-hit states: Every state has been hit by the downturn, but the highest rates of new jobless claims have come in Hawaii, Michigan and Rhode Island, where more than 20% of workers have filed for unemployment. The Journal reports that the most claims were filed in California (2.8 million, or 14.5% of the state labor force), followed by Pennsylvania (1.3 million, or 19.8% of workers) and New York (1.2 million, or 12.4% of workers).


thefiscaltimes--2020-04-21--Restaurants Want Their Own $240 Billion Bailout

The restaurant industry wants its own $ 240 billion bailout package , saying that the legislation passed by Congress last month makes it more appealing for its employees to draw unemployment than come back to work , Politico ’ s Ian Kullgren reports : “ The new Paycheck Protection Program waives repayment of small business loans if the borrower uses 75 percent of the money to maintain payroll , a measure intended to reduce layoffs .
But with the expanded unemployment benefits included in the stimulus bill , some workers can as much as double their weekly checks if they @ @ @ @ @ @ @ particularly acute for restaurants , cafes and small shops — nonessential businesses where pay scales tend to be low that have been put into indefinite hibernation .
The National Restaurant Association told Congress Monday that more than 60 percent of restaurant owners believe existing assistance programs , including PPP , are insufficient to keep employees on payroll and asked for $ 240 billion in aid targeted to their industry.
” “ Restaurants represent less than 9 percent of Paycheck Protection loan recipients , but as of March accounted for the majority of layoffs @ @ @ @ @ @ @ The Paycheck Protection loans are meant to cover payroll expenses for eight weeks , a shorter timeframe than the enhanced unemployment benefits provided by Congress .
The National Restaurant Association also asked Congress to allow businesses to defer the start of PPP loans until local lockdown orders are lifted and to allow more than 25 % of borrowed money to be used on rent and other fixed costs .
Kullgren notes that some small business advocates and lawmakers want the U.S. to implement a European-style program to provide direct payments to businesses rather @ @ @ @ @ @ @ But , he adds , “ such ideas have little traction in the current political environment .
”

The restaurant industry wants its own $240 billion bailout package, saying that the legislation passed by Congress last month makes it more appealing for its employees to draw unemployment than come back to work, Politico’s Ian Kullgren reports:
“The new Paycheck Protection Program waives repayment of small business loans if the borrower uses 75 percent of the money to maintain payroll, a measure intended to reduce layoffs. But with the expanded unemployment benefits included in the stimulus bill, some workers can as much as double their weekly checks if they stay unemployed.
“The mismatch is particularly acute for restaurants, cafes and small shops — nonessential businesses where pay scales tend to be low that have been put into indefinite hibernation. The National Restaurant Association told Congress Monday that more than 60 percent of restaurant owners believe existing assistance programs, including PPP, are insufficient to keep employees on payroll and asked for $240 billion in aid targeted to their industry.”
“Restaurants represent less than 9 percent of Paycheck Protection loan recipients, but as of March accounted for the majority of layoffs nationwide as the contagion took hold.”
The Paycheck Protection loans are meant to cover payroll expenses for eight weeks, a shorter timeframe than the enhanced unemployment benefits provided by Congress.
The National Restaurant Association also asked Congress to allow businesses to defer the start of PPP loans until local lockdown orders are lifted and to allow more than 25% of borrowed money to be used on rent and other fixed costs.
Kullgren notes that some small business advocates and lawmakers want the U.S. to implement a European-style program to provide direct payments to businesses rather than loans to help cover payroll. But, he adds, “such ideas have little traction in the current political environment.”


thefiscaltimes--2020-04-20--Coronavirus Spending Will Spur Renewed Battles Over Deficit

As Congress works to add hundreds of billions of dollars more in coronavirus relief funding , it ’ s clear that the federal budget deficit and national debt are soaring to levels never seen before .
The deficit , which was expected to top $ 1 trillion even before the pandemic struck , is now projected to approach $ 4 trillion this fiscal year , far exceeding the previous nominal high of $ 1.4 trillion in 2009 .
As a share of the economy , the deficit is likely to rise to nearly 20 % , a figure topped only @ @ @ @ @ @ @ held by the public is now expected to top 106 % by 2023 , years earlier than previously projected .
Even the most dedicated of deficit hawks say that the unprecedented deficit spending is necessary and that protecting lives and mitigating economic devastation in the midst of the pandemic should take precedence over long-term debt concerns .
But as The Washington Post ’ s David J. Lynch and Carl Hulse of The New York Times wrote over the weekend , some analysts are warning that , as the sea of red ink rises @ @ @ @ @ @ @ ahead .
“ We should be very worried , ” Atif Mian , an economics professor at Princeton University , told the Post .
“ We are talking about a level of debt that would certainly be unprecedented in modern history or in history , period .
We are definitely at a tipping point.
” There ’ s scant evidence that debt concerns are currently weighing on markets or further depressing what ’ s left of the pandemic-plagued economy .
Interest rates remain at historic lows , making borrowing more affordable , and @ @ @ @ @ @ @ for years .
But Torsten Slok , the chief economist at Deutsche Bank Securities , tells the Post that interest rates are being kept low by the Federal Reserve ’ s emergency bond-buying , which has seen the central bank add more than $ 2 trillion of loans to its books over the past six weeks — as much as in the four years following the Great Recession , according to the Post .
Some analysts warn that the massive amounts of debt being added will present new challenges for the Fed and @ @ @ @ @ @ @ growth and leave the country less prepared to make much-needed investments or address the next crisis .
“ Once we get beyond this disaster , some very hard choices will have to be made , or you will have a federal government that is simply crippled in terms of being able to respond to crisis — whether it is a coronavirus or a natural disaster or a military conflict or economic downturn , ” Kent Conrad , the former Democratic chairman of the Senate Budget Committee , told the Times .
Others say @ @ @ @ @ @ @ “ The point at which the size of the U.S. debt is too great for the market to take on is eons away , ” Guy Lebas , the chief fixed-income strategist with Janney Montgomery Scott , told the Post .
“ If anything , the covid crisis has increased global demand for U.S. debt.
” The fiscal fights ahead : The debt surge may dramatically diminish the political appetite for new debt — and it ’ s almost certain to spark even more heated battles in Congress over the appropriate levels of @ @ @ @ @ @ @ going to make budgeting in the future extraordinarily difficult , ” Conrad said .
Those deficit fights , fundamentally , will be much like the ones that have come before , with Republicans ideologically opposed to tax increases and Democrats pushing to maintain spending on key priorities .
As Hulse writes : “ The pandemic response will amplify the push and pull that has long shaped the fiscal wars , between those who argue that the answer to deficits is to reduce spending and those insisting that the solution is new revenue streams @ @ @ @ @ @ @ will suspect the other is using the crisis to advance their own policy agendas , as either an excuse to raise taxes or a justification to squeeze spending on programs they already didn ’ t like.
” Read more at The Washington Post or The New York Times .

As Congress works to add hundreds of billions of dollars more in coronavirus relief funding, it’s clear that the federal budget deficit and national debt are soaring to levels never seen before. The deficit, which was expected to top $1 trillion even before the pandemic struck, is now projected to approach $4 trillion this fiscal year, far exceeding the previous nominal high of $1.4 trillion in 2009. As a share of the economy, the deficit is likely to rise to nearly 20%, a figure topped only during World War II, and debt held by the public is now expected to top 106% by 2023, years earlier than previously projected.
Even the most dedicated of deficit hawks say that the unprecedented deficit spending is necessary and that protecting lives and mitigating economic devastation in the midst of the pandemic should take precedence over long-term debt concerns. But as The Washington Post’s David J. Lynch and Carl Hulse of The New York Times wrote over the weekend, some analysts are warning that, as the sea of red ink rises to historic levels, a reckoning lies ahead.
“We should be very worried,” Atif Mian, an economics professor at Princeton University, told the Post. “We are talking about a level of debt that would certainly be unprecedented in modern history or in history, period. We are definitely at a tipping point.”
There’s scant evidence that debt concerns are currently weighing on markets or further depressing what’s left of the pandemic-plagued economy. Interest rates remain at historic lows, making borrowing more affordable, and most economists expect them to stay low for years. But Torsten Slok, the chief economist at Deutsche Bank Securities, tells the Post that interest rates are being kept low by the Federal Reserve’s emergency bond-buying, which has seen the central bank add more than $2 trillion of loans to its books over the past six weeks — as much as in the four years following the Great Recession, according to the Post.
Some analysts warn that the massive amounts of debt being added will present new challenges for the Fed and Treasury while also threatening to weaken future growth and leave the country less prepared to make much-needed investments or address the next crisis. “Once we get beyond this disaster, some very hard choices will have to be made, or you will have a federal government that is simply crippled in terms of being able to respond to crisis — whether it is a coronavirus or a natural disaster or a military conflict or economic downturn,” Kent Conrad, the former Democratic chairman of the Senate Budget Committee, told the Times.
Others say that the debt fears are overblown. “The point at which the size of the U.S. debt is too great for the market to take on is eons away,” Guy Lebas, the chief fixed-income strategist with Janney Montgomery Scott, told the Post. “If anything, the covid crisis has increased global demand for U.S. debt.”
The fiscal fights ahead: The debt surge may dramatically diminish the political appetite for new debt — and it’s almost certain to spark even more heated battles in Congress over the appropriate levels of taxes and spending. “It is going to make budgeting in the future extraordinarily difficult,” Conrad said.
Those deficit fights, fundamentally, will be much like the ones that have come before, with Republicans ideologically opposed to tax increases and Democrats pushing to maintain spending on key priorities. As Hulse writes:
“The pandemic response will amplify the push and pull that has long shaped the fiscal wars, between those who argue that the answer to deficits is to reduce spending and those insisting that the solution is new revenue streams. Complicating the situation, each side will suspect the other is using the crisis to advance their own policy agendas, as either an excuse to raise taxes or a justification to squeeze spending on programs they already didn’t like.”
Read more at The Washington Post or The New York Times.


thefiscaltimes--2020-04-17--Biden Proposes Expanded Federal Subsidies to Keep Workers on Payrolls

Former Vice President Joe Biden , the likely Democratic presidential nominee , on Thursday released a plan calling for federal subsidies to help companies keep on more employees during the coronavirus pandemic .
Biden proposed scaling up state-run “ short-time compensation programs ” under which , as he described it , “ firms in distress keep workers employed but at reduced hours and the federal government helps make up the difference in wages.
” The goal is to keep workers attached to their jobs , wages and benefits , even if employers cut their hours .
“ We should be @ @ @ @ @ @ @ possible attached to their employment , so they can easily return to work when appropriate , and maintain their income and benefits , ” Biden said in a statement .
“ This is more than just the right thing to do — it is the surest road to a rapid recovery , because the faster everyone returns to their jobs , the faster we can improve demand and get our economy running again.
” The Biden campaign said 27 states have such short-time compensation plans and that , if elected , Biden would @ @ @ @ @ @ @ .
Biden said he would have the programs “ be 100 % permanently funded by the federal government ” and expanded to all states and territories by “ using a mix of conditioned assistance and additional incentives.
” Biden also proposed allowing the program to help businesses cover rent and other necessities , automatic triggers for the emergency aid and a tax credit to help cover employer health care costs for workers whose hours are cut .
“ While it is crucial that employees keep their full benefits , having to fund the @ @ @ @ @ @ @ they are seeing a significant fall in revenue can discourage companies from choosing short-time compensation over layoffs , ” the Biden campaign said .
The $ 2.2 trillion coronavirus relief package enacted last month provides 100 % federal funding for short-time compensation programs , with benefits capped per person at the total amount workers would have received had they lost their job , according to The Hill .

Former Vice President Joe Biden, the likely Democratic presidential nominee, on Thursday released a plan calling for federal subsidies to help companies keep on more employees during the coronavirus pandemic.
Biden proposed scaling up state-run “short-time compensation programs” under which, as he described it, “firms in distress keep workers employed but at reduced hours and the federal government helps make up the difference in wages.”
The goal is to keep workers attached to their jobs, wages and benefits, even if employers cut their hours. “We should be committed to keeping as many people as possible attached to their employment, so they can easily return to work when appropriate, and maintain their income and benefits,” Biden said in a statement. “This is more than just the right thing to do — it is the surest road to a rapid recovery, because the faster everyone returns to their jobs, the faster we can improve demand and get our economy running again.”
The Biden campaign said 27 states have such short-time compensation plans and that, if elected, Biden would look to reform and expand such programs. Biden said he would have the programs “be 100% permanently funded by the federal government” and expanded to all states and territories by “using a mix of conditioned assistance and additional incentives.”
Biden also proposed allowing the program to help businesses cover rent and other necessities, automatic triggers for the emergency aid and a tax credit to help cover employer health care costs for workers whose hours are cut. “While it is crucial that employees keep their full benefits, having to fund the full health care costs of workers when they are seeing a significant fall in revenue can discourage companies from choosing short-time compensation over layoffs,” the Biden campaign said.
The $2.2 trillion coronavirus relief package enacted last month provides 100% federal funding for short-time compensation programs, with benefits capped per person at the total amount workers would have received had they lost their job, according to The Hill.


thefiscaltimes--2020-04-22--Mnuchin: ‘We Need to Spend What It Takes to Win the War’

Treasury Secretary Steven Mnuchin sent mixed signals Wednesday on the Trump administration ’ s approach to the next stimulus package .
On the one hand , Mnuchin indicated that the White House is on a wartime footing when it comes to the federal budget .
“ I think we 're all sensitive to that this is a war and we need to win this war and we need to spend what it takes to win the war , '' Mnuchin told Fox Business Network .
But the Treasury Secretary hedged by suggesting that concerns about the debt-fueled spending may act @ @ @ @ @ @ @ : “ On the other hand , I think we are sensitive to the economic impacts of putting on debt , and that 's something that the president is reviewing with us very carefully.
” Although there will likely be more pushback from conservatives on the size and scope of additional federal spending in the next relief package , Mnuchin did point out that the financial constraints are currently quite modest : `` The good news is interest rates are very low , so the cost of carrying the debt to the American @ @ @ @ @ @ @ said .

Treasury Secretary Steven Mnuchin sent mixed signals Wednesday on the Trump administration’s approach to the next stimulus package.
On the one hand, Mnuchin indicated that the White House is on a wartime footing when it comes to the federal budget. “I think we're all sensitive to that this is a war and we need to win this war and we need to spend what it takes to win the war," Mnuchin told Fox Business Network.
But the Treasury Secretary hedged by suggesting that concerns about the debt-fueled spending may act as a brake on future spending plans: “On the other hand, I think we are sensitive to the economic impacts of putting on debt, and that's something that the president is reviewing with us very carefully.”
Although there will likely be more pushback from conservatives on the size and scope of additional federal spending in the next relief package, Mnuchin did point out that the financial constraints are currently quite modest: "The good news is interest rates are very low, so the cost of carrying the debt to the American taxpayer is quite low," he said.


thefiscaltimes--2020-04-21--Mom and Pop? Dozens of Public Companies Taking Aid Meant for Small Business

Although the Paycheck Protection Program was designed to help small businesses keep their employees on the payroll , millions of dollars in assistance has been allocated to publicly traded companies , according to new research from Morgan Stanley .
At least 75 such firms have claimed $ 243 million from the program , including 15 with market caps of over $ 100 million , according to the analysis ( see the chart below , via CNBC ) .
Fiesta Restaurant Group , for example – which operates the Pollo Tropical and Taco Cabana restaurant brands , has a market cap @ @ @ @ @ @ @ more than 10,000 people – received a loan of $ 10 million , the maximum allowed .
The loans are available to some larger companies due to a loophole in the law that allows some businesses to treat separates locations of the same chain as individual entities .
Firms that use the money to cover payroll costs are eligible for loan forgiveness .
A separate analysis by the Associated Press uncovered 75 publicly traded companies that received more than $ 300 million in low-interest loans through the small business rescue program .
The @ @ @ @ @ @ @ maximum loan amount of $ 10 million and said that was likely just the “ tip of the iceberg.
” Some companies that received loans had recently reported millions of dollars in cash on hand , the AP said , and others likely have access to other sources of assistance .
Some larger firms that received the assistance defended their participation in the program , saying they were just following the rules , with the goal of helping their employees .
But critics worry that smaller firms have been shortchanged , missing out @ @ @ @ @ @ @ mom-and-pop businesses that lack access to conventional bank loans and private investors .
Thousands of small business owners were reportedly shut out of the program when funds ran dry last week , including many independent restaurant owners , some of whom feel they lost out to better financed chains .
Zachary Davis , a California businessman who owns two ice cream shops , told the AP that “ if you ’ re a little guy , chances are you ’ re going to the back of the line.
” Howard Schultz , the @ @ @ @ @ @ @ , seemed to agree .
“ I think you ’ ve seen some pretty shameful acts by some large companies to take advantage of the system , ” Schultz said .

Although the Paycheck Protection Program was designed to help small businesses keep their employees on the payroll, millions of dollars in assistance has been allocated to publicly traded companies, according to new research from Morgan Stanley.
At least 75 such firms have claimed $243 million from the program, including 15 with market caps of over $100 million, according to the analysis (see the chart below, via CNBC). Fiesta Restaurant Group, for example – which operates the Pollo Tropical and Taco Cabana restaurant brands, has a market cap of over $180 million and employs more than 10,000 people – received a loan of $10 million, the maximum allowed.
The loans are available to some larger companies due to a loophole in the law that allows some businesses to treat separates locations of the same chain as individual entities. Firms that use the money to cover payroll costs are eligible for loan forgiveness.
A separate analysis by the Associated Press uncovered 75 publicly traded companies that received more than $300 million in low-interest loans through the small business rescue program. The AP found eight firms that received the maximum loan amount of $10 million and said that was likely just the “tip of the iceberg.” Some companies that received loans had recently reported millions of dollars in cash on hand, the AP said, and others likely have access to other sources of assistance.
Some larger firms that received the assistance defended their participation in the program, saying they were just following the rules, with the goal of helping their employees. But critics worry that smaller firms have been shortchanged, missing out on aid that was targeted at true mom-and-pop businesses that lack access to conventional bank loans and private investors. Thousands of small business owners were reportedly shut out of the program when funds ran dry last week, including many independent restaurant owners, some of whom feel they lost out to better financed chains.
Zachary Davis, a California businessman who owns two ice cream shops, told the AP that “if you’re a little guy, chances are you’re going to the back of the line.”
Howard Schultz, the billionaire founder of the Starbucks coffee empire, seemed to agree. “I think you’ve seen some pretty shameful acts by some large companies to take advantage of the system,” Schultz said.


thefiscaltimes--2020-04-21--Senate Approves Another $484 Billion in Coronavirus Relief

The Senate passed an additional $ 484 billion in emergency coronavirus aid on Tuesday , replenishing a loan program for small businesses that ran dry last week and providing more funding for hospitals and testing .
The deal is the fourth congressional effort to address the pandemic and would bring total coronavirus relief spending to nearly $ 3 trillion .
The package includes : • $ 321 billion in additional funding for the Paycheck Protection Program targeted at small businesses , including $ 30 billion reserved for community-based lenders , small banks and credit unions and $ 30 billion for @ @ @ @ @ @ @ PPP funding also includes $ 11 billion more for administrative costs ; • $ 60 billion more for the Economic Injury Disaster program for small businesses , including $ 50 billion for loans and $ 10 billion for grants ; • $ 25 billion for testing and contact tracing , including $ 11 billion to be distributed to states as well as $ 1 billion for the Centers for Disease Control and Prevention , $ 1.8 billion for the National Institutes of Health , $ 1 billion for the Biomedical Advanced Research and @ @ @ @ @ @ @ testing the uninsured and $ 825 million for community and rural health centers ; The deal came after some two weeks of partisan impasse , after Democrats refused to pass additional funding for small businesses without more aid for hospitals , testing , states and local governments .
In the end , the White House and congressional Republicans agreed to provide more money for hospitals and testing but not for state and local governments .
The bill reportedly also requires the Trump administration to establish a national strategic testing plan within 30 days @ @ @ @ @ @ @ national approach to testing , while Republicans and the White House said the responsibility for testing should be on states and the private sector .
“ The final agreement seems to strike a balance , ” The Washington Post reports , “ requiring plans from states and localities on how they will utilize the testing funds , and also requiring a strategic plan on providing assistance to states for increasing testing and testing capacity.
” On Tuesday , leaders of both parties hailed the deal and claimed it as a victory for their @ @ @ @ @ @ @ McConnell : “ I am encouraged that Democratic leaders have finally agreed to reopen the Paycheck Protection Program and abandon a number of their unrelated demands .
… In the week-plus while our Democratic colleagues delayed the urgent PPP funds , additional federal help for hospitals and healthcare providers became urgent as well .
Republicans have always supported more medical funding as soon as necessary and I am proud this package will provide roughly $ 75 billion more to fund hospitals and healthcare providers in this crisis.
” • House Speaker Nancy Pelosi @ @ @ @ @ @ @ “ Democrats flipped this emergency package from an insufficient Republican plan that left behind hospitals and health and frontline workers and did nothing to aid the survival of the most vulnerable small businesses on Main Street.
” • House Majority Leader Steny Hoyer , per Politico , told reporters Tuesday : `` When you look at the package that ’ s going to be passed , it ’ s almost exactly like the one we asked for two weeks ago .
We 're ending up with a bill we could 've passed 12 @ @ @ @ @ @ @ next : The House could approve the legislation as soon as Thursday in a vote requiring at least 216 members to return to the Capitol .
In a pair of tweets Tuesday afternoon , President Trump urged the House and Senate to pass the legislation and said that , after he signs it , discussions would begin on the next phase of relief , which he said would include aid “ to State/Local Governments for lost revenues from COVID 19 , much needed Infrastructure Investments for Bridges , Tunnels , Broadband , Tax @ @ @ @ @ @ @ , and Payroll Tax Cuts to increase Economic Growth.
” But McConnell reportedly said the next phase wouldn ’ t come until the Senate is back in session , and that the growing national debt resulting from coronavirus relief efforts is `` a matter of genuine concern . ''
Too little , too late ?
Even before the additional Paycheck Protection Program funding has passed , there are already concerns that it won ’ t be enough .
“ Lenders are warning their customers they might not be able to secure loans even @ @ @ @ @ @ @ billion as soon as this week , ” Politico ’ s Zachary Warmbrodt reported Monday .
“ Banking industry representatives say the program has a burn rate of $ 50 billion per day and needs closer to $ 1 trillion to meet demand , with hundreds of thousands of applications pending .
”

The Senate passed an additional $484 billion in emergency coronavirus aid on Tuesday, replenishing a loan program for small businesses that ran dry last week and providing more funding for hospitals and testing.
The deal is the fourth congressional effort to address the pandemic and would bring total coronavirus relief spending to nearly $3 trillion. The package includes:
$321 billion in additional funding for the Paycheck Protection Program targeted at small businesses, including $30 billion reserved for community-based lenders, small banks and credit unions and $30 billion for mid-sized banks and credit unions. The PPP funding also includes $11 billion more for administrative costs;
$60 billion more for the Economic Injury Disaster program for small businesses, including $50 billion for loans and $10 billion for grants;
$75 billion for hospitals;
$25 billion for testing and contact tracing, including $11 billion to be distributed to states as well as $1 billion for the Centers for Disease Control and Prevention, $1.8 billion for the National Institutes of Health, $1 billion for the Biomedical Advanced Research and Development Authority, $1 billion for testing the uninsured and $825 million for community and rural health centers;
$2.1 billion for Small Business Administration administrative expenses.
The deal came after some two weeks of partisan impasse, after Democrats refused to pass additional funding for small businesses without more aid for hospitals, testing, states and local governments. In the end, the White House and congressional Republicans agreed to provide more money for hospitals and testing but not for state and local governments.
The bill reportedly also requires the Trump administration to establish a national strategic testing plan within 30 days. Democrats had been pushing for a national approach to testing, while Republicans and the White House said the responsibility for testing should be on states and the private sector. “The final agreement seems to strike a balance,” The Washington Post reports, “requiring plans from states and localities on how they will utilize the testing funds, and also requiring a strategic plan on providing assistance to states for increasing testing and testing capacity.”
On Tuesday, leaders of both parties hailed the deal and claimed it as a victory for their priorities.
Senate Majority Leader Mitch McConnell: “I am encouraged that Democratic leaders have finally agreed to reopen the Paycheck Protection Program and abandon a number of their unrelated demands. … In the week-plus while our Democratic colleagues delayed the urgent PPP funds, additional federal help for hospitals and healthcare providers became urgent as well. Republicans have always supported more medical funding as soon as necessary and I am proud this package will provide roughly $75 billion more to fund hospitals and healthcare providers in this crisis.”
“I am encouraged that Democratic leaders have finally agreed to reopen the Paycheck Protection Program and abandon a number of their unrelated demands. … In the week-plus while our Democratic colleagues delayed the urgent PPP funds, additional federal help for hospitals and healthcare providers became urgent as well. Republicans have always supported more medical funding as soon as necessary and I am proud this package will provide roughly $75 billion more to fund hospitals and healthcare providers in this crisis.” House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer: “Democrats flipped this emergency package from an insufficient Republican plan that left behind hospitals and health and frontline workers and did nothing to aid the survival of the most vulnerable small businesses on Main Street.”
“Democrats flipped this emergency package from an insufficient Republican plan that left behind hospitals and health and frontline workers and did nothing to aid the survival of the most vulnerable small businesses on Main Street.” House Majority Leader Steny Hoyer, per Politico, told reporters Tuesday: "When you look at the package that’s going to be passed, it’s almost exactly like the one we asked for two weeks ago. We're ending up with a bill we could've passed 12 days ago."
What’s next: The House could approve the legislation as soon as Thursday in a vote requiring at least 216 members to return to the Capitol. In a pair of tweets Tuesday afternoon, President Trump urged the House and Senate to pass the legislation and said that, after he signs it, discussions would begin on the next phase of relief, which he said would include aid “to State/Local Governments for lost revenues from COVID 19, much needed Infrastructure Investments for Bridges, Tunnels, Broadband, Tax Incentives for Restaurants, Entertainment, Sports, and Payroll Tax Cuts to increase Economic Growth.” But McConnell reportedly said the next phase wouldn’t come until the Senate is back in session, and that the growing national debt resulting from coronavirus relief efforts is "a matter of genuine concern."
Too little, too late? Even before the additional Paycheck Protection Program funding has passed, there are already concerns that it won’t be enough. “Lenders are warning their customers they might not be able to secure loans even if Congress provides an additional $300 billion as soon as this week,” Politico’s Zachary Warmbrodt reported Monday. “Banking industry representatives say the program has a burn rate of $50 billion per day and needs closer to $1 trillion to meet demand, with hundreds of thousands of applications pending.”