The Trump administration is asking Congress to approve a massive economic stimulus package of around $850 billion to stanch the economic free-fall caused by the coronavirus, four officials familiar with the planning said Tuesday.
Treasury Secretary Steven Mnuchin will present details to Senate Republicans later Tuesday. The package would be mostly devoted to flooding the economy with cash, through a payroll tax cut or other mechanism, two of the officials said, with some $50 billion directed specifically to helping the airline industry. The officials spoke on condition of anonymity to discuss internal deliberations.
The $850 billion package would come in addition to another roughly $100 billion package that aims to provide paid sick leave for impacted workers, though the details of that legislation remain very fluid as it moves through Congress.
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It’s unclear how warmly the design of the White House’s proposal will be received. Trump has for several weeks pushed Congress to cut or eliminate the payroll tax, which is paid by employees and employers and funds Social Security and Medicare benefits. Many Democrats have complained that such a tax cut would not necessarily directly benefit people who have lost jobs because of the coronavirus crisis. But lawmakers have, in recent days, talked about the need for a huge economic package to stabilize the economy, and it’s likely that some ideas are being revisited.
The attempt to inject a massive amount of money into the economy is reminiscent of the bailouts and stimulus steps Congress took during the economic crisis more than a decade ago. This time around, with everyday life in America screeching to a halt, the intervention may need to be faster and even more extreme. In 2008, Congress passed a $700 billion package, called the Troubled Asset Relief Program, to try and rescue the financial system.
The package the White House is pursuing now would be bigger, not adjusted for inflation, but it would include things like tax cuts that the 2008 program lacked.
All sides — the House, Senate and White House — agree the pending bill is not the last and not nearly enough to handle what's coming. At the start of the month, Congress approved $8.3 billion in initial aid. Trump quickly signed into law the measure, which provided federal agencies money for vaccines, tests and potential treatments, and funding to help state and local governments respond to the threat.
“We will need big, bold, urgent federal action to deal with this crisis,” Senate Democratic leader Chuck Schumer said Monday.
Schumer floated the Democrats' proposal for at least $750 billion to boost hospital capacity, unemployment insurance and other direct aid for American households, businesses and the health care industry. Republican senators conferred privately over their priorities.
Republicans often reluctant to spend federal dollars did not flinch at the head-spinning number, as a roster of America's big and small industries — airlines, hotels, retailers — lined up for aid.
Sen. Mitt Romney, R-Utah, called for sending $1,000 to every adult American.
The president conveyed that lawmakers should “not be impeded by the price tag,” said Eric Ueland, the White House legislative director.
Senate Majority Leader Mitch McConnell said he wants a “comprehensive” approach with “significant steps” for the economy, particularly Main Street businesses. He opened the Senate on Monday with a message to Americans: “The Senate stands with you.”
