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Jobless Aid Fuels Partisan Divide Over Next Pandemic Rescue Package Jobless Aid Fuels Partisan Divide Over Next Pandemic Rescue Package
(2 days later)
Senator John Cornyn of Texas called the expanded unemployment benefits enacted as part of the coronavirus stimulus law a lifeline. Senator Steve Daines of Montana said they were protecting vulnerable families. Senator Mitch McConnell of Kentucky, the majority leader, called the aid an effort to expand relief for those suddenly left unemployed by the pandemic.Senator John Cornyn of Texas called the expanded unemployment benefits enacted as part of the coronavirus stimulus law a lifeline. Senator Steve Daines of Montana said they were protecting vulnerable families. Senator Mitch McConnell of Kentucky, the majority leader, called the aid an effort to expand relief for those suddenly left unemployed by the pandemic.
Senator Ron Wyden, Democrat of Oregon, called his Republican colleagues — who had resisted the generous expansion of jobless aid — nervy.Senator Ron Wyden, Democrat of Oregon, called his Republican colleagues — who had resisted the generous expansion of jobless aid — nervy.
“With more than 30 million Americans unemployed through no fault of their own, those Republicans sure have chutzpah,” said Mr. Wyden, the top Democrat on the Senate Finance Committee, noting that those same Republicans voted to limit the assistance. “They have been out boasting about getting unemployment increases they voted against.”“With more than 30 million Americans unemployed through no fault of their own, those Republicans sure have chutzpah,” said Mr. Wyden, the top Democrat on the Senate Finance Committee, noting that those same Republicans voted to limit the assistance. “They have been out boasting about getting unemployment increases they voted against.”
The aid set off a partisan divide during the last round of coronavirus relief legislation and has emerged as a sticking point again as lawmakers begin hammering out the fourth phase of government help. The additional money — $600 per week for 16 weeks — is set to expire at the end of July.The aid set off a partisan divide during the last round of coronavirus relief legislation and has emerged as a sticking point again as lawmakers begin hammering out the fourth phase of government help. The additional money — $600 per week for 16 weeks — is set to expire at the end of July.
The issue is fraught with political overtones given the approach of the November elections and the battle for control of the Senate. Democrats see an opening to portray Republicans as being callous toward struggling workers while insisting on liability protections for employers, which Mr. McConnell has called a prerequisite for any deal.The issue is fraught with political overtones given the approach of the November elections and the battle for control of the Senate. Democrats see an opening to portray Republicans as being callous toward struggling workers while insisting on liability protections for employers, which Mr. McConnell has called a prerequisite for any deal.
Republicans argue the Democratic approach could hurt critical efforts to restart the economy and endanger businesses that are the source of needed jobs. But with millions of Americans joining the ranks of the unemployed each week — another 3.2 million filed last week, the Labor Department reported on Thursday, bringing the seven-week total to more than 33 million — Republicans are also scrambling to blunt the political risk of opposing additional relief in light of the extraordinary economic toll of the pandemic.Republicans argue the Democratic approach could hurt critical efforts to restart the economy and endanger businesses that are the source of needed jobs. But with millions of Americans joining the ranks of the unemployed each week — another 3.2 million filed last week, the Labor Department reported on Thursday, bringing the seven-week total to more than 33 million — Republicans are also scrambling to blunt the political risk of opposing additional relief in light of the extraordinary economic toll of the pandemic.
The dispute is one of several that are likely to turn bitter as the next round of federal pandemic relief takes shape in Congress. Democrats are also pressing for $500 billion in aid to states and cities, a $25 billion bailout for the Postal Service and money to conduct voting-by-mail in the general election. Republicans have signaled they want to limit new spending, and the White House is pressing for tax cuts.The dispute is one of several that are likely to turn bitter as the next round of federal pandemic relief takes shape in Congress. Democrats are also pressing for $500 billion in aid to states and cities, a $25 billion bailout for the Postal Service and money to conduct voting-by-mail in the general election. Republicans have signaled they want to limit new spending, and the White House is pressing for tax cuts.
Republicans argue that they never opposed expanding unemployment benefits. What they say they wanted — and what nearly all of them voted for in late March — was a plan to cap the extra money at 100 percent of what a worker was earning when the pandemic struck. A $600, across-the-board hike, they argued, could result in some people receiving more in unemployment than they would on the job, providing a disincentive for employees to return to work.Republicans argue that they never opposed expanding unemployment benefits. What they say they wanted — and what nearly all of them voted for in late March — was a plan to cap the extra money at 100 percent of what a worker was earning when the pandemic struck. A $600, across-the-board hike, they argued, could result in some people receiving more in unemployment than they would on the job, providing a disincentive for employees to return to work.
But that approach was seen as technologically unworkable given the desire to distribute the aid quickly as the pandemic’s punishing impact took hold. Steven Mnuchin, the Treasury secretary who was the Trump administration’s point man for stimulus negotiations, agreed to Democrats’ demand for the more generous benefit. Some Republicans were livid, but their bid to pare back the aid amounted to a symbolic vote doomed to failure.But that approach was seen as technologically unworkable given the desire to distribute the aid quickly as the pandemic’s punishing impact took hold. Steven Mnuchin, the Treasury secretary who was the Trump administration’s point man for stimulus negotiations, agreed to Democrats’ demand for the more generous benefit. Some Republicans were livid, but their bid to pare back the aid amounted to a symbolic vote doomed to failure.
Now that states are beginning to slowly reopen, Republicans say they have been proven correct. They say they are receiving complaints from employers who claim that many of their workers are resisting returning until they have exhausted their ability to draw what amounts to significant extra pay. And they warn that the situation could ultimately harm businesses that might have to repay small-business loans they took out from a fund created by the stimulus measure, called the Paycheck Protection Program. The terms of the program’s loans allow them to be forgiven only if businesses maintain their payrolls.Now that states are beginning to slowly reopen, Republicans say they have been proven correct. They say they are receiving complaints from employers who claim that many of their workers are resisting returning until they have exhausted their ability to draw what amounts to significant extra pay. And they warn that the situation could ultimately harm businesses that might have to repay small-business loans they took out from a fund created by the stimulus measure, called the Paycheck Protection Program. The terms of the program’s loans allow them to be forgiven only if businesses maintain their payrolls.
“We’ve heard from worried hotels, restaurants, and barbershops in Texas unable to rehire their workers and now at risk of losing their P.P.P. loans they need to survive,” Mr. Cornyn said in a statement. “In their rush to exploit this crisis for their own gain, Democrats overlooked this, and it’s shameful.”“We’ve heard from worried hotels, restaurants, and barbershops in Texas unable to rehire their workers and now at risk of losing their P.P.P. loans they need to survive,” Mr. Cornyn said in a statement. “In their rush to exploit this crisis for their own gain, Democrats overlooked this, and it’s shameful.”
Mr. Cornyn’s office said the Texas Workforce Commission had informed him that 80 percent of Texans currently on unemployment were making more in jobless pay than they did in their last job.Mr. Cornyn’s office said the Texas Workforce Commission had informed him that 80 percent of Texans currently on unemployment were making more in jobless pay than they did in their last job.
Some Republicans have made it clear they would vigorously oppose any renewal of the unemployment program that they viewed as discouraging workers to go back on the job.Some Republicans have made it clear they would vigorously oppose any renewal of the unemployment program that they viewed as discouraging workers to go back on the job.
Senator Lindsey Graham, Republican of South Carolina and one of those who forced the unsuccessful vote in March to limit the benefits, told a home-state audience last week that the program would be extended “over our dead bodies.”Senator Lindsey Graham, Republican of South Carolina and one of those who forced the unsuccessful vote in March to limit the benefits, told a home-state audience last week that the program would be extended “over our dead bodies.”
“You cannot turn on the economy until you get this aberration of the law fixed,” he said at a meeting of the task force created to plan how to reopen South Carolina’s economy.“You cannot turn on the economy until you get this aberration of the law fixed,” he said at a meeting of the task force created to plan how to reopen South Carolina’s economy.
Mr. McConnell said Tuesday that Senate Republicans wanted to proceed more deliberately with any new rescue package to allow time to consider how the programs created in the previous legislation were working.Mr. McConnell said Tuesday that Senate Republicans wanted to proceed more deliberately with any new rescue package to allow time to consider how the programs created in the previous legislation were working.
“We’re going to take a pause here, do a good job of evaluating what we’ve already done,” he said.“We’re going to take a pause here, do a good job of evaluating what we’ve already done,” he said.
Democrats are generally supportive of maintaining the added benefits after their expiration date, though it remains unclear what shape their preferred proposal might take. Speaker Nancy Pelosi, Democrat of California, has raised the possibility of creating a “guaranteed income” that would go directly to workers. A top aide to Ms. Pelosi said that she had been referring to a paycheck guarantee program, not a larger-scale universal basic income, but the idea is unlikely to gain broad support in the Republican-led Senate.Democrats are generally supportive of maintaining the added benefits after their expiration date, though it remains unclear what shape their preferred proposal might take. Speaker Nancy Pelosi, Democrat of California, has raised the possibility of creating a “guaranteed income” that would go directly to workers. A top aide to Ms. Pelosi said that she had been referring to a paycheck guarantee program, not a larger-scale universal basic income, but the idea is unlikely to gain broad support in the Republican-led Senate.
Updated August 4, 2020 Updated August 6, 2020
Senator Chuck Schumer of New York, the Democratic leader, said Tuesday that he was seeking another aggressive economic package.Senator Chuck Schumer of New York, the Democratic leader, said Tuesday that he was seeking another aggressive economic package.
“We need lots more money,” he told reporters, “or the whole economy will hurt.”“We need lots more money,” he told reporters, “or the whole economy will hurt.”
Democratic Senators Michael Bennet of Colorado and Jack Reed of Rhode Island joined Representative Donald S. Beyer Jr., Democrat of Virginia, in introducing a proposal Tuesday that would maintain the added benefits until 30 days after the president ended his emergency declaration over the coronavirus pandemic. Other proposals are likely to surface.Democratic Senators Michael Bennet of Colorado and Jack Reed of Rhode Island joined Representative Donald S. Beyer Jr., Democrat of Virginia, in introducing a proposal Tuesday that would maintain the added benefits until 30 days after the president ended his emergency declaration over the coronavirus pandemic. Other proposals are likely to surface.
“We are going to be climbing out of a deep economic hole, and we need to maintain support for workers and families until the economy is back to full strength,” Mr. Bennet said.“We are going to be climbing out of a deep economic hole, and we need to maintain support for workers and families until the economy is back to full strength,” Mr. Bennet said.
Mr. Wyden, who negotiated the unemployment package with Mr. Mnuchin, said he anticipated that some form of enhanced unemployment would still be necessary after the current program expires in late July.Mr. Wyden, who negotiated the unemployment package with Mr. Mnuchin, said he anticipated that some form of enhanced unemployment would still be necessary after the current program expires in late July.
“I think there is going to be a need based on the economic conditions at the end of July for the workers to get an additional boost,” Mr. Wyden said.“I think there is going to be a need based on the economic conditions at the end of July for the workers to get an additional boost,” Mr. Wyden said.
The $600 figure was settled upon as an approximation between what an average worker would receive in unemployment benefits and what they would earn on the job — a sort of “rough justice” as Mr. Wyden described it. The round figure was needed because states made it clear that their unemployment systems were incapable of calculating more precise payments for individual workers.The $600 figure was settled upon as an approximation between what an average worker would receive in unemployment benefits and what they would earn on the job — a sort of “rough justice” as Mr. Wyden described it. The round figure was needed because states made it clear that their unemployment systems were incapable of calculating more precise payments for individual workers.
The federal government is now providing money to update those systems and more could be forthcoming. But congressional officials say those changes could not be made in time to be a factor in legislation this year, meaning any extension of enhanced benefits would again be based on a broad approximation.The federal government is now providing money to update those systems and more could be forthcoming. But congressional officials say those changes could not be made in time to be a factor in legislation this year, meaning any extension of enhanced benefits would again be based on a broad approximation.
Despite the partisan divide over the added payments, most lawmakers in both parties eagerly promoted the extra unemployment benefits in statements and outreach to constituents after the legislation was approved.Despite the partisan divide over the added payments, most lawmakers in both parties eagerly promoted the extra unemployment benefits in statements and outreach to constituents after the legislation was approved.
Mr. Wyden said that rare bit of unity illustrated the popularity of the enhanced aid, suggesting that Republicans could have a tough time resisting an extension despite their reservations.Mr. Wyden said that rare bit of unity illustrated the popularity of the enhanced aid, suggesting that Republicans could have a tough time resisting an extension despite their reservations.