News & Media
Coronavirus March 27 Update: A Possible New Round of Aid in the Works, Uncertainty About the House Vote, and the Economic Impacts of COVID-19
New round of coronavirus aid in the works?
The House hasn't even voted yet on the massive $2 trillion relief package for a coronavirus-plagued nation, but Democrats are already eyeing the next bill.
House Speaker Nancy Pelosi, D-Calif., said as much over the past few days, telling "PBS Newshour" on Wednesday that "the next phase will be recovery" and telling reporters yesterday she expects more checks in the hands of Americans. "I don't think we've seen the end of direct payments," she said.
House Majority Leader Steny H. Hoyer, D-Md., told Democratic lawmakers on a call this week that he expected both a fourth and fifth round of coronavirus-related bills, according to a source who requested anonymity to recount private discussions.
At least for now, Republicans are pumping the brakes, arguing that once the current package (HR 748) passes, taking a wait-and-see approach would be the wisest move. "First you have to let the bill work before I can answer the question, 'Is it enough?'" said House Minority Leader Kevin McCarthy, R-Calif. "If something is needed in the future, let's make that decision, but let's not make that decision without allowing these bills to be put into the economy."
Here's what is on Democrats' wish list: Clarity on who qualifies for family and medical leave. Protections for health care workers. Increasing food stamp payments by 15 percent. More money to state and local governments. Free coronavirus testing, doctor visits and follow-up treatment. Equitable funding for residents of Washington, D.C., which was deprived of at least $750 million in emergency funding as a result of its non-state status.
Pelosi said she's already talked to Treasury Secretary Steven Mnuchin about all these items. Griffin Connolly has the full story.
Beyond these asks, a congressional source said House Administration Chairwoman Zoe Lofgren of California wants Democrats to secure a federal mandate requiring states to provide vote-by-mail or other remote options in the presidential election, with funding for state implementation.
Democrats got a win in the current bill with $400 million in election assistance funds, but a federal vote-by-mail mandate would cost roughly $4 billion to implement, according to a senior Democratic aide. Lindsey McPherson has that story.
Bottom Line: More rescue bills can't be ruled out. How quickly they'll come is another matter.
House vote faces uncertainty
Dozens of lawmakers are expected to show up in the House on Friday morning for a vote on the rescue package, but what will happen is very much up in the air.
That's because Democrats want to pass the package by voice vote, since there won't be nearly enough members to have a quorum, or majority of the House, which is currently 216 lawmakers. But if anyone objects -- and anyone can -- the voice vote option won't work.
Hoyer advised members in a notice late Thursday that "it is possible this measure will not pass by voice vote."
One lawmaker who could raise concerns is Thomas Massie, R-Ky., who told a Cincinnati radio station Thursday, "I'm having a really hard time with this." He suggested he's considering asking for a roll call vote or objecting if there's not a quorum.
New York Democrat Alexandria Ocasio-Cortez has also complained about the bill, though for different reasons. It's unclear if she'd be able to travel to Washington to object, given the quarantine recommendations for anyone leaving New York City.
Alternatively, the House could use a rule it adopted after 9/11 to set a provisional quorum based on the number of members able to return to the Capitol. But Democrats are unlikely to deploy that option because it has never been used, and some members are concerned it's unconstitutional. Leaders are hoping that those who object can voice their displeasure on the floor without throwing up procedural hurdles. Lindsey McPherson has the story.
Rescue bill comes with big tax breaks
The financial rescue package would save U.S. households and businesses nearly $1 trillion in taxes this year, though companies would have to pay a chunk of that back starting in 2021.
The Joint Committee on Taxation estimates that overall during the next decade, the tax provisions of the massive relief bill (HR 748) will cost $591 billion. That's roughly one-fourth of the overall $2.2 trillion preliminary cost White House officials have tallied up, though some independent projections are even pricier.
The biggest immediate savings from the package comes from a payroll tax holiday for employers, which will put off the need to pay $352 billion in Social Security taxes on wages and salaries until after this year.
The payback requirement is stiff: Half is due by the end of 2021 and the rest by the end of 2022, on top of payroll taxes they'd have to ordinarily have to pony up. That could create pressure on lawmakers to stretch out the repayments if the economy hasn't fully recovered post-COVID-19. But as long as the IRS recoups the money within the 10-year budget window, the overall cost of the aid package comes down substantially.
The largest piece of the package that doesn't need to be repaid are the measure's centerpiece: tax rebates of up to $1,200 per person. Married couples filing jointly get up to $2,400, with an extra $500 per child. The benefit starts to phase out above $75,000 and $150,000 in adjusted gross income for individuals and joint filers respectively. Price tag: $292 billion, according to JCT. Doug Sword has the full story.
Trump says cruise lines should come home
When the recent rescue bill was released, the cruise industry responded with concern that they wouldn't be eligible for some aid. Most cruise ships are incorporated in foreign countries like Panama and Liberia, allowing them to skirt U.S. taxes.
Trump said Thursday he'd be open to the idea, first raised by Sen. Josh Hawley, R-Mo., for cruise ships to be based in the U.S. "I do like the concept of, perhaps, coming in and registering here. Coming into the United States," Trump said at Thursday's daily briefing on the coronavirus response. "It's very tough to make a loan to a company when they're based in a different country."
There are few tears being shed among Democrats over the cruise companies' plight. "They aren't American," Rep. Peter A. DeFazio, D-Ore., chairman of the House Transportation and Infrastructure Committee, said earlier this month. "They don't pay taxes in the United States of America."
A $454 billion provision in the aid package provides loans and loan guarantees to large businesses affected by the pandemic, but with the stipulation that a company must be "created or organized in the United States or under the laws of the United States" and "have significant operations in and a majority of its employees based in the United States."
Many cruise ships fall short on that first requirement. Still, the president is clearly concerned about the effect of an industry collapse on local economies that serve as ports-of-call. "They have thousands and thousands of people that work there, and almost maybe as importantly that work on shore filling these ships with goods and products," the president said Thursday. "The cruise line business is very important."