Getty What's the status on a second stimulus check?
It’s unlikely a stimulus deal will be reached this week. Not only is the White House Chief of Staff, Mark Meadows, out of office, but “the administration feels confident they have the upper hand politically following President Donald Trump’s executive actions,” according to Politico.
On Tuesday morning, the outlet reported it could be weeks before any serious talks about a stimulus package resume.
Forbes reacted to the news, writing, “That the fate of tens of millions of Americans, including 30 million unemployed workers, is on hold, even partially, because one person on vacation is stupefying.”
Here’s what we know:
Meadows Will Return Next Week
Meadows is expected to make his return next week, but even then, it could be days, or even weeks, before both sides of the aisle reach an agreement on a stimulus package. The House and the Senate must pass a bill, and it must be signed by President Donald Trump, in order for it to become law.
Last week, Congress failed to reach its self-imposed Friday deadline to agree on the details of a relief package. Then, on Saturday, Trump signed executive orders for a payroll tax cut, enhanced unemployment benefits, an eviction moratorium, and student loan relief, according to Forbes.
This does not mean there won’t be a second round of checks; rather, it will take longer for a consensus on a package that includes those checks to be reached.
At this time, it’s unclear when negotiations will continue. Forbes reported Steve Mnuchin as saying on Tuesday that he had not spoken to Nancy Pelosi or Chuck Schumer since Friday.
Mnuchin confirms he hasn’t spoken with Pelosi or Schumer since Friday; asked whether he might reach out to them, he says he’s happy to meet with them anytime “They’re willing to negotiate and have a new proposal”
Trump’s Executive Orders
Another important factor in stimulus negotiations will be the efficacy of Trump’s actions. Forbes cited a statement from the National Governors Association, which read, “We appreciate the White House’s proposals to provide additional solutions to address economic challenges; however, we are concerned about the significant administrative burdens and costs this latest action would place on the states.”
One of Trump’s executive orders involves deferring the collection of payroll taxes from employees through the end of 2020. However, the impact of the deferral has confused businesses and employees alike. When CNBC spoke to Urban-Brookings Tax Policy Center senior fellow Janet Holtzblatt, she stated that the deferral could be considered a “payroll tax loan.” However, the employer would eventually have to repay it. As CNBC pointed out, “That means if employers do not withhold the taxes for those months, employees could be hit with a sizable bill in the new year.”
Tens of millions of jobless Americans are unlikely to see their weekly unemployment checks grow anytime soon — despite President Trump’s executive action promising an extra $400 a week.
On Tuesday, CNET quoted Mnuchin as saying that if a “fair” deal can be reached, they are willing to move forward this week. However, as of Tuesday, no “formal” action had been taken in regard to a stimulus deal.
If talks do resume this week, it’s possible a bill could become law by the end of this week, or early next week. CNET highlighted that if it’s anything like the CARES Act, then it could take just three days for a bill to become law after the Senate votes.
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