Stimulus Checks Unlikely Until Biden Takes Office, Some Senators Say

Topline

With congressional attention focused on a $900 billion stimulus package proposed by a bipartisan group of senators, some lawmakers say a second round of stimulus checks will have to wait until next year when Washington can hammer out an agreement on additional aid under President-elect Joe Biden.

Key Facts

Last week, a bipartisan group including Sen. Joe Manchin (D-W.Va.), Sen. Mitt Romney (R-Utah), Sen. Rob Portman (R-Ohio), and Sen. Mark Warner (D-Va.), proposed a $908 billion stimulus package as Senate Majority Leader Mitch McConnell (R-Ky.) and House Speaker Nancy Pelosi (D-Calif.) remained hundreds of billions of dollars away from reaching an agreement.

Their proposal includes extended unemployment benefits, state and local aid, small business relief, and funds for transportation, healthcare and rental assistance, but no money for direct payments, a popular element of the first major coronavirus stimulus package.

Discussions over the new package are ongoing, but over the weekend, several senators said another round of stimulus check would only be possible once Biden and a new Congress take office next year and try to negotiate another round of relief: “Those who want the direct stimulus checks, that will be something that a president-elect Biden will grapple with,” Warner told CNN Sunday. 

Bill Cassidy (R-La.), another member of the bipartisan group, did not dismiss the possibility of another stimulus check Sunday, but said it would have to “be part of a different piece of legislation” than the $900 package. 

Some senators, such as Sen. Lindsey Graham (R-S.C.), have gone as far to call stimulus checks a poison pill, with Graham telling reporters Thursday direct payments “probably breaks the coalition.”

Biden threw his weight behind the $900 billion package on Friday, but has remained adamant that any bill passed during the lame-duck session is “at best just a start.”

Key Background

After months of sticking to a stimulus framework worth no less than $2.2 trillion, Democratic leaders Pelosi and Senate Minority Leader Chuck Schumer (D-N.Y.) did an about-face on Wednesday, signing onto the $900 billion compromise package as a starting point for further negotiations. McConnell, however, has stood his ground, and pitched a new version of a roughly $500 billion bill last week, which the White House has signed onto. 

What To Watch For 

Stimulus checks may not be the only program that doesn’t make it into the next stimulus package. Any bill needs to get past McConnell, and the Kentucky senator has so far been hesitant about backing a prolonged extension of expanded unemployment. The $908 billion proposal includes four months of $300 in weekly unemployment benefits. 

Surprising Fact

Sen. Josh Hawley (R-Mo.) is the only Republican thus far to come out in favor of including a stimulus check in the next stimulus package.   

Further Reading

McConnell Says Stimulus Compromise Is ‘Within Reach’ As Schumer Criticizes Partisan Posturing (Forbes)

Biden, Top Senate Republican Signal Support For $908 Billion Stimulus Plan (Forbes)

In Big Concession, Democratic Leaders Support $908 Billion Bipartisan Stimulus Plan (Forbes)


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