Jobless Benefits Debate Shows Divide Between Dems’ Stimulus Approach, GOP’s Wait-And-See Mindset
The extra $600 a week in jobless benefits is scheduled to lapse at the end of July. Democrats are pushing for the extra aid to continue, but Republicans are being more hesitant. The issue reflects a larger divide between the parties as they prepare to negotiate the next round of relief. Meanwhile, the Federal Reserve gives a grim assessment of the next few years of recovery. And many wonder why billions in small-business aid hasn't been distributed.
The New York Times:
With Jobless Benefits Set To Lapse, Congress Is At Odds Over An Extension
With expanded jobless benefits put in place to help laid-off workers weather the pandemic set to expire by the end of July, Republicans and Democrats in Congress are at odds over whether to continue to provide substantial payments to tens of millions of Americans who are still out of work. Lawmakers in both parties and administration officials appear to agree that Congress should consider some form of assistance to workers as part of another round of coronavirus aid that is likely to be debated in the coming weeks. But while Democrats want to continue a supplement of $600 a week past July 31, when those benefits are set to lapse, Republicans and the White House — citing an unexpected improvement in jobs numbers — are resisting the move, arguing that doing so could discourage people from returning to work. (Cochrane and Tankersley, 6/11)
The New York Times:
Fed Leaves Rates Unchanged And Projects Years Of High Unemployment
The head of the Federal Reserve on Wednesday offered a grim assessment of how quickly the U.S. economy will recover from its pandemic-induced recession, suggesting that millions of people could remain out of work for an extended period as central bank officials estimated unemployment will be at 9.3 percent by the end of 2020. The Fed chair, Jerome H. Powell, said the labor market might have “hit bottom” after recording a 14.7 percent unemployment rate in April, but made clear that it was too soon to know for certain. (Smialek and Rappeport, 6/10)
Politico:
Fed's Dire Outlook: GDP Seen Shrinking By 6.5 Percent This Year
“This is the biggest economic shock, in the U.S. and in the world, really, in living memory,” Fed Chair Jerome Powell said at a press conference after central bank officials met in Washington. ”We went from the lowest level of unemployment in 50 years to the highest level in close to 90 years, and we did it in two months.” Incumbent presidents are historically unlikely to be reelected when the economy is in dire straits, putting pressure on Trump to ensure a quick rebound. But the circumstances of the recession — a broad economic shutdown to stop the spread of a pandemic — could soften voter views of the president, who has consistently polled well on economic matters even as he lags behind Democratic rival Joe Biden overall. (Guida, 6/10)
The New York Times:
$130 Billion In Small-Business Aid Still Hasn’t Been Used
In April, when the federal government offered $349 billion in loans to small businesses reeling from government shutdown orders in the pandemic, the funding ran out in just 13 days, prompting Congress to swiftly approve a second round of $310 billion. Small businesses have since grown more wary of taking the money. As of Tuesday, more than $130 billion was left in the fund, known as the Paycheck Protection Program. (Cowley, 6/10)
ABC News:
Minority-Owned Small Businesses Still Struggle To Access Billions In Stimulus
Treasury Secretary Steven Mnuchin said definitively on Wednesday that he feels another economic relief package will be necessary to help pull the U.S. economy out of a recession in the wake of coronavirus-related shutdowns. "I definitely think we are going to need another bipartisan legislation to put more money into the economy," Mnuchin said at a Senate Small Business Committee oversight hearing. (Kolinovsky, 6/10)
The New York Times:
Where The Money Is For Small Businesses
The pain and insecurity of the shock of the coronavirus on small business owners have been overwhelming. Entrepreneurs have taken extreme steps to stay operational, and many are deeply worried about their prospects in the coming months and beyond. But help is out there. Federal, state and local governments, as well as communities, corporations and foundations have stepped up with financial resources. (Hannon, 6/11)
ProPublica:
'I Can’t Speak Negatively About The President,' Says Official Charged With Stimulus Oversight
When Congress was considering passing the more than $2 trillion coronavirus bailout two months ago, President Donald Trump made his vision for oversight clear. “I’ll be the oversight,” he said. The CARES Act empowers a number of different offices to make sure the money is spent wisely and without favoritism. Shortly after he signed it into law, Trump ousted the inspector general who was slated to lead the oversight — one of five watchdogs the president has purged in less than two months. (Marritz and Sullivan, 6/10)
KQED:
California Courts Halt Plan To Lift Eviction Moratorium In August
Tenant groups and advocates are breathing a sigh of relief, after the Judicial Council of California postponed a vote to remove emergency protections for renters and homeowners who have fallen behind on payments during the pandemic. The council, which oversees policy decisions in the state’s courts, first voted to halt new evictions and foreclosure filings on April 6, as courts were closing due to the coronavirus. (Solomon and Baldassari, 6/10)
