Republican lawmakers have proposed an additional recovery plan of $1 trillion to address the economic setbacks caused by the pandemic outbreak across the US. Monday’s plan includes stimulus payments of up to $1,200 to most Americans and $100 billion for schools.
Under the new proposed plan, the payment would replace a $600 boost to the unemployment benefits during the coronavirus outbreak in the country. The proposal sets the stage for negotiations with the opposition Democratic party. However, it has described the Republican proposal as ‘’totally inadequate’’.
On the virus relief efforts during the pandemic, the US has already spent more than $2.4 trillion, sending billions of dollars of aid to households and businesses. But many economists have warned that since the spring, more would be necessary to cope with economic damages.
More
- US Congress Finally Approves $484bn Relief Package
- COVID-19: States Begin to Reopen As US Death Toll Passes 50,000
Senator Mitch McConnell said that the Republican lawmakers wanted to observe how the current programs were working, but now they have produced a targeted and tailored draft to address the economic fallouts of the coronavirus.
The weekly unemployment benefit supplement of $600 would be reduced to $200 until the state authorities can set up a more targeted set up that replaces 70 percent of the previous wage.
Political experts have pointed out the reduction reflects that the current benefits workers from returning to their workplaces, since nearly two-thirds of the workers are getting more than what they could not make at work.
McConnel added that the Republicans want to continue the supplement grants, however, it also must ensure that it does not put hurdles in reopening the country. The Democrat senator, Chuck Schemer, said that the republican’s proposal was too little and late.
Since the outbreak in February, the US has lost nearly a million jobs, and the recovery remains on shaky ground as the deaths and new infections continue to surge rapidly across the country.
According to a consensus, nearly one in five workers in America are collecting unemployment benefits, and half of the country’s adults live in the household that has seen a significant drop in income. Schumer added that this is a far crisis.
He further went on to criticize the Republican proposed plan, saying that it cuts the grants to the workers at a time when they need it the most as it would take ample time for the state authorities to shift to a new system. He said that such steps would slide the country into a greater risk of recession.
Meanwhile, the Democrat politicians have proposed their $3 trillion plan and want to fund for the local authorities and officials, which are facing a significant downfall in budgets due to the pandemic outbreak.
Many Republican lawmakers had suggested to fast-track the legislation process, which democrats have strongly objected to. Meanwhile, on Friday, McConnel said that he expects that the negotiations could take some time.
