McConnell Unveils $1T Stimulus Plan: $1,200 Checks For Some Americans, Loans For Airlines, $300B Pot For Small Businesses

The Associated Press: Trump's Team, Senators To Negotiate $1T Economic Rescue Deal
Members of President Donald Trump’s economic team convene Friday on Capitol Hill to launch negotiations with Senate Republicans and Democrats racing to draft a $1 trillion-plus economic rescue package amid the coronavirus outbreak. It’s the biggest effort yet to shore up households and the U.S. economy as the pandemic and its nationwide shutdown hurtles the country toward a likely recession. (Taylor and Mascaro, 3/20)

The Wall Street Journal: McConnell Unveils GOP Stimulus Plan Amid Coronavirus Crisis
The plan Mr. McConnell introduced calls for taxpayers to receive up to $1,200, with married couples eligible to receive as much as $2,400 with an additional $500 for every child. Those payments will scale down for individuals who make more than $75,000 and couples that make more than $150,000. Individuals who make more than $99,000 and households that earn more than $198,000 won’t be eligible for direct assistance. Under the proposal, the government will provide $50 billion in loan guarantees for passenger air carriers, $8 billion for cargo air carriers and $150 billion for other large businesses, and the proposal authorizes the government to take equity stakes in them. The proposal also includes $300 billion for loan guarantees for small businesses. (Duehren, Hughes and Wise, 3/19)

The New York Times: Senate Rescue Package Includes Corporate Tax Cuts And $1,200 Checks
The proposal is different from one pitched on Thursday by Steven Mnuchin, the Treasury secretary, who said the administration wanted to send two waves of $1,000 checks to every American, one in April and one in May should the crisis persist. The Senate bill also includes a raft of temporary changes to the tax code that would reduce the tax liability of large corporations, many of them overriding provisions in the 2017 tax overhaul that were meant to raise revenue to offset corporate rate cuts. (Cochrane, Tankersley and Rappeport, 3/19)

The New York Times: 5 Takeaways From The Coronavirus Economic Relief Package
The Senate Republican plan curtails how much small businesses would have to pay employees who were forced to stay home because of the virus, revising a paid leave measure enacted just this week. The Senate plan would cap the amount an employer has to pay at $200 a day. The measure drew swift condemnation from Democrats, who have argued for substantial immediate relief for people who have had to miss work because of illness, to care for a family member or to follow public health guidelines intended to stop the spread of Covid-19. (Sullivan, 3/19)

Politico: Who Wins In The Senate GOP's Big Bailout
As businesses clamor for liquidity amid mounting layoffs and decreased demand for services, the Senate bill would free up cash through a host of tax relief provisions. Social Security taxes would be on pause for employers for the rest of the year, but they would have to pay back that money in 2021 and 2022. Employers could apply recent operating losses to previous tax years, get quicker refunds and deduct more from the interest paid on their debt. (Emma and Scholtes, 3/19)

The Hill: Senate Coronavirus Rescue Bill Would Suspend Student Loan Payments For Up To Six Months
Payments on federal student loans would be delayed for up to six months without additional interest accruing on their balances under a coronavirus economic rescue plan proposed by Senate Republicans on Thursday. The bill, called the Coronavirus Aid, Relief, and Economic Security Act, orders the Education Department (ED) to delay payments on federal student loans for three months. The bill also gives the Secretary of Education the ability to extend the payment suspension period for another three months. (Lane, 3/19)

The Washington Post: Senate Republicans Release Massive Economic Stimulus Bill For Coronavirus
Sen. Lindsey O. Graham (R-S.C.), a close ally of the president’s, was among several GOP senators voicing concern or outright opposition Thursday to the idea of direct payments, even as McConnell unveiled the trillion-dollar stimulus plan that would be the starting point for negotiations with Democrats. McConnell called for those talks to start Friday, and senators said the situation was so dire that they should not recess until they have reached a deal to pass it. (Stein, DeBonis, Werner and Kane, 3/19)

Politico: Coronavirus Response Hinges On McConnell And Schumer 
Just two weeks ago, Senate Majority Leader Mitch McConnell was on the Senate floor haranguing his Democratic counterpart, Chuck Schumer, over the New York senator’s allegedly “threatening” comments toward two Supreme Court justices. Just before that, McConnell and Schumer were locked in a month-long bitter struggle over President Donald Trump’s impeachment trial. But as the United States confronts potentially devastating economic consequences from the coronavirus pandemic, the Senate leaders face a stiff challenge on whether they can come together to quickly finalize a massive economic stimulus package. Their ability to reach a bipartisan agreement will shape the crisis’ fallout for millions of Americans. (Levine, Desiderio and Bresnahan, 3/19)

Politico: ‘It’s Only A Down Payment’: Why A $1 Trillion Stimulus May Not Be Enough
As forecasts darken with estimates for huge spikes in unemployment and sharp drops in economic growth, economists and Wall Street analysts are warning that even the huge stimulus package now under consideration on Capitol Hill may only make a small dent. Some suggest the number needs to be at least $2 trillion or perhaps far more. “They should be doing much more than they are thinking about and doing it much quicker, at least $2 trillion with the promise of more to come,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics. “We have whole industries like the restaurant industry that have been obliterated already. Jobless claims next week could be two or three million.” (White, 3/20)

Politico: Lobbyists Make A Mad Dash To Shape Coronavirus Stimulus Package
Senate Republicans raced this week to introduce a trillion-dollar coronavirus stimulus package. Lobbyists for industries left reeling by the pandemic were hustling just as hard to shape it. The bill’s unveiling on Thursday capped an extraordinary week on K Street in which trade group after trade group asked Congress for sums that would have been unfathomable just a few weeks ago: $1.4 trillion to shore up the manufacturing sector, $4 billion for museums, $100 billion for doctors, nurses and hospitals. (Meyer, 3/20)

Politico: Hospitals Bid For $100 Billion In Next Coronavirus Package
Hospitals bracing for a flood of coronavirus cases are demanding a federal bailout. They want $100 billion in the next relief package along with targeted changes to tax laws they say are needed to free up the money before the first surge of cases sweeps in. (Luthi, Roubein and Goldberg, 3/19)

The New York Times: Coronavirus Tests Are Now Free, But Treatment Could Still Cost You
Even if they shouldn’t, people may think twice about seeking testing or treatment for the coronavirus if they are worried about getting large medical bills, even when they have health insurance. “The problem is we have reams and reams of evidence that if people know they face hundreds or thousands of dollars in bills, they’ll hesitate, they’ll wait and see,” said Sabrina Corlette, a research professor at Georgetown University. (Abelson, 3/19)