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Republicans, historically, are averse to big spending bills. They’ve campaigned for decades on the promise of lowering the national deficit and shrinking the government. However, this is rarely the case in reality, as republican lawmakers tend to authorize massive military budgets while slashing social program spending. The COVID-19 crisis has been no different.
While democrats have been pushing to authorize further relief spending for businesses and individuals impacted by the pandemic, republicans have largely resisted calls to pass further legislation. Recently, however, Senate Majority Leader Mitch McConnell has changed his tune. On Tuesday, McConnell remarked that Congress will “probably” need to pass another spending bill.
The US has been experiencing economic turmoil since the beginning of the pandemic. Millions of Americans are out of work, and joblessness claims are at an all-time high. Unemployment benefits are tapping state treasuries, while reduced tax revenue from lower spending is putting many states in precarious financial positions.
While some economists predict quick rebounds in the economy, epidemiologists warn that secondary waves of viral outbreak could crush any short-term gains. As such, McConnell has stated that future legislation will depend on how fast states recover. According to the Senate Majority Leader, “we need to make sure we have unemployment insurance properly funded for as long as we need.”
Individuals in the US are largely struggling to make ends meet as the pandemic keeps parts of the country locked down. Notably, the only major spending that is lower for the average American now is the cost of gas. Since people are traveling less, gas is at a very low price per gallon. Less people need a Shell gascard to actually afford their weekly fill-up.
Advisors to President Trump have noted that public sentiment was warmer following the first round of $1,200 payments through the CARES Act. As such, the president seems to be open to the idea of a second round of payments.
McConnell, however, has not made any mention of a second round of direct payments. Weeks ago, the democrat-controlled House passed a $3 trillion relief bill that includes another direct payment to US citizens. But the Senate has made no indication of moving to pass that bill. Notably, the Democrat-led bill is full of many top campaign priorities from Speaker of the House Nancy Pelosi.
The democrat-passed bill includes $1 trillion for states that are running low on cash. It also extends an extra $600 per month added to unemployment through January 2021.
Currently, that provision is set to expire in July. McConnell did not clarify what time table Senate republicans were considering for passing another spending bill.
