Media: White House Prepares $ 1.8 Trillion Stimulus Plan
House Democrats reject White House stimulus offer as ‘grossly inadequate’
The administration decided to continue negotiations with the Democrats on providing assistance to the economy affected by the coronavirus pandemic
As the presidential election approaches Friday, the White House is preparing a $ 1.8 trillion economic stimulus plan to bring the administration and Democrats closer together in Congress, according to media reports on Friday..
President Donald Trump this week expressed doubts that the Democratic proposals could serve as the basis for a joint plan to help the economy hit by the damage caused by the COVID-19 pandemic. As it turned out today, it looks like his administration is still ready to return to this issue as the November 3 elections approach..
The new initiative, refined from the administration’s previous $ 1.6 trillion proposal, brings the stimulus package closer to the Democratic proposal for $ 2.2 trillion in aid to the economy..
“The President approved the revised package,” said Larry Kudlow, White House economic adviser, “I think we are moving in the right direction. The gap is closing “.
Kudlow did not provide details, but several media outlets, citing sources, said the administration had increased its economic stimulus plan by $ 200 billion..
However, Senate Majority Leader Mitch McConnell said on Friday that Congress is unlikely to agree to a new stimulus package before the elections, due to remaining “huge” disagreements over funding clauses..
“We really need another economic bailout package, but the elections are getting closer and there are big differences of opinion on what needs to be done at the moment,” McConnell said at a press conference in Kentucky. The senator said he wants lawmakers to overcome their political differences and approve an economic package. However, “in the next three weeks … this is unlikely,” McConnell said..
His pessimism contrasts with the president’s comments in recent days, including Friday, when Trump tweeted: “Talks on COVID [pandemic] relief to the economy are moving forward.”.
House Speaker Nancy Pelosi and Treasury Secretary Stephen Mnuchin have been in talks for several weeks trying to negotiate a bill on additional aid to the economy. However, the prospects of the deal this week were in question after President Trump on Tuesday announced the suspension of negotiations..
Pelosi said she had lengthy talks with Mnuchin on Thursday, adding that they should meet again on Friday to discuss outstanding funding issues..
“I really hope we can reach an agreement soon,” Pelosi said on Friday on MSNBC. “But as you say, they [the administration] continue to change their minds.”.
According to economists, a new round of government support is critical to prevent a wave of layoffs and bankruptcies, as well as to support the unemployed. International Monetary Fund calls on governments around the world to continue measures to support the economy.