Tag Archives: stimulus package

U.S. House begins debate on $900 billion coronavirus package as funding deadline looms

By Richard Cowan and Andy Sullivan

WASHINGTON (Reuters) -The U.S. House of Representatives on Monday began debate on a $900 billion coronavirus aid package meant to stimulate a pandemic-hit economy, which the leaders of both chambers of Congress aimed to pass in a marathon session.

The White House-backed bill includes $600 payments to most Americans as well as additional payments to the millions of people thrown out of work during the COVID-19 pandemic, just as a larger round of benefits is due to expire on Saturday.

The House of Representatives is expected to vote sometime Monday evening.

Senate Majority Leader Mitch McConnell told reporters at the Capitol that passage of the legislation in the Senate will “probably be late but we’re going to finish tonight.”

At 5,593 pages, the wide-ranging bill that also spends $1.4 trillion on an array of federal programs through next September, is likely to be the final major piece of legislation for the 116th Congress that expires on Jan. 3.

It has a net cost of roughly $350 billion for coronavirus relief, McConnell said, adding that more than $500 billion in funding comes from unspent money Congress had authorized.

The package, the first Congress-approved aid since March, comes as the pandemic is accelerating in the United States, infecting more than 214,000 people every day and slowing the economic recovery. More than 317,000 Americans have died.

The bill would be the second-largest stimulus package in U.S. history, behind only the $2.3 trillion aid bill passed this spring. Economists say that money played a critical role at a time when social-distancing measures shuttered wide swaths of the world’s largest economy.

The new bill reprises many of the key pillars of the earlier package, with some modifications. Small-business aid would be expanded to struggling news outlets and TV stations, while theaters and live-music venues would get dedicated support.

Unemployed workers would get an extra $300 per week through March, down from the $600 increase in the earlier bill. An eviction ban, due to expire at the end of the year, will be extended through January.

Lawmakers set aside issues that had frozen negotiations for months, including liability protections sought by Republicans and state and local government aid sought by Democrats. A last-minute dispute over emergency-lending programs administered by Federal Reserve was also resolved.

(Reporting by Andy Sullivan; additional reporting by David Brunnstrom; Editing by Robert Birsel)

As pandemic lifelines expire, Americans in housing free fall

By Michelle Conlin

NEW YORK (Reuters) – Clarence Hamer doesn’t expect to hang on to his house much longer.

His downstairs tenant owes him nearly $50,000 in back rent on the four-bedroom duplex he owns in Brownsville, Brooklyn. Without those rental payments, Hamer has been unable to pay the thousands he owes in heat, hot water and property taxes. In September, after exhausting his life savings, he stopped paying the mortgage, too.

“I don’t have any corporate backing or any other type of insurance,” said Hamer, a 46-year-old landlord who works for the city of New York. “All I have is my home, and it seems apparent that I’m going to lose it.”

America’s mom-and-pop landlords, along with their tenants, have been dangling by a thread for nine months. Now, with Congress still deadlocked over the contours of a second pandemic stimulus package, they are entering a new housing abyss, a perilous period of pandemic limbo as the last of the safety nets are set to expire.

The day after Christmas, the extended unemployment benefits that have kept 12 million people and their families afloat are scheduled to expire. Then, mere days after that cliff, on New Year’s Day, a national ban on renter evictions from the Centers for Disease Control and Prevention is also set to lapse.

Overnight, an unprecedented bill of $70 billion in unpaid back rent and utilities will come due, according to estimates by Moody’s Analytics Chief Economist Mark Zandi. In all, up to 40 million people could be threatened with eviction over the coming months, research from the Aspen Institute says.

Much of the focus has been on tenants. But Stacey Johnson-Cosby, president of the Kansas City Regional Housing Alliance, says more than 40% of the landlords surveyed in her coalition said that they expected to have to sell their units in the coming months due to rental income losses.

“They are sheltering our citizens free of charge and there’s nothing we can do about it,” said Johnson-Cosby. “This is their retirement income.”

She added that small landlords are also terrified of speaking out for fear of drawing the ire of tenant rights groups who promote “Cancel Rent” and have bombarded landlords with publicity campaigns featuring their pictures and barricades at apartment buildings and local courthouses.

“What they don’t realize is that if they run us out and we fail, it will be private equity and Wall Street firms that buy up all our properties, just like they did with houses after the last foreclosure crash.”

PANDEMIC DEADLOCK

A $908 billion second stimulus relief package proposed by a bipartisan group of senators is gaining traction in Washington but it is unclear if President Donald Trump will support the plan, and it only includes $25 billion for rent relief—far from the $70 billion needed in January.

President-elect Joe Biden has indicated he will sign executive orders the day he takes office extending moratoriums on evictions and foreclosures as well as other relief measures.

But that will not address a brutal 20 days in January, between the safety net expirations and Biden’s inauguration, when the free fall will begin. And economists say this period of uncertainty has already contributed to economic scarring that could threaten the U.S. economic recovery, which is showing signs of slowing and veering back into recession.

Though Biden will likely be telegraphing his administration’s solutions in the coming weeks, “the reality on the ground is going to be very dark, with people losing homes in the dead of winter during a pandemic, said Moody’s Zandi. “It’s going to be very painful and devastating. There’s going to be a lot of people who fall through the cracks.”

Underscoring the urgency of the situation is the fact that new research shows that evictions have led to increases in COVID-19 cases and deaths.

A report released Nov. 30 by a consortium of university researchers found that there were 433,700 excess cases of COVID and 10,700 excess deaths associated with the lifting of eviction moratoriums during the summer, before the blanket CDC ban began. States that let moratoriums expire had a 2.1-times higher incidence of cases and 5.4-times higher mortality, according to the researchers from Johns Hopkins University and other four other universities.

The cost of this housing instability is not spread evenly, as Blacks, whose employment has been hit the hardest during the pandemic, comprise 80% of those facing eviction in major cities and are also more than twice as likely to die of COVID than whites.

ZOMBIE PROPERTIES

At first, it all seemed easy. In May 2019, Clarence Hamer’s new tenant had passed a background check and said she would live a quiet life with her elderly father and boyfriend in the $3,250-a-month duplex.

Two months after moving in, she stopped paying the full rent. Hamer tried everything: calling her, texting her, knocking on her door—but to no avail. In August 2019, he filed an eviction notice. But the court date kept getting delayed until March 2020, when COVID-19 hit and the courts ground to a halt.

Then, his tenant sublet the unit to other people –Hamer is hamstrung from getting them out, too. He says they have trashed the once tidy unit, and that there is a constant odor of marijuana, and foot traffic in and out of the home at all hours of the day. He watches it all and feels powerless, his net worth now turned into a zombie property.

“They are going to foreclose. It’s only going to be a matter of time,” said Hamer. “And rightfully so, I can’t blame them. Apparently we are all in this together—unless you are a landlord.”

(Reporting by Michelle Conlin; Editing by Tom Lasseter and Lisa Shumaker)

Next U.S. coronavirus rescue package not too far off, McConnell says

WASHINGTON (Reuters) – U.S. Senate Republican leader Mitch McConnell said on Thursday another stimulus package to deal with the impact of the coronavirus was “not too far off.”

“I think there is a high likelihood we will do another rescue package,” McConnell told Fox News Channel in an interview.

“But we need to be able to measure the impact of what we’ve already done, what we did right, what we did wrong … We’re not quite ready to intelligently lay down the next step, but it’s not too far off.”

(Reporting by Mohammad Zargham and Makini Brice; Editing by Sandra Maler)

House on edge ahead of $2.2 trillion coronavirus vote

By David Morgan and Richard Cowan

WASHINGTON (Reuters) – Armed with hand sanitizer and discouraged from using elevators, members of the U.S. House of Representatives aimed to quickly pass a sweeping $2.2 trillion coronavirus stimulus bill on Friday, though it was unclear if they would be forced to delay a day.

Leadership of the Democratic-controlled chamber and top Republicans aimed to pass the largest relief measure that Congress has ever taken up in a voice vote, one of the fastest methods the chamber has, and pass it on to Republican President Donald Trump for his signature.

There could be opposition. Republican Representative Thomas Massie said he opposed the bill, and was uncomfortable with the idea of allowing it to pass on a voice vote, rather than in a formal call recording how each House member voted, which could delay the vote until Saturday.

The Capitol has laid out special procedures because of the coronavirus to minimize the threat of infection. Members are barred from sitting next to one another and would be called from their offices alphabetically for the vote. They will be required to use hand sanitizer before entering the chamber and encouraged to take the stairs, rather than use elevators, to better maintain social distancing.

While most of the House’s 430 current members are in their home districts because of the coronavirus outbreak, several are expected to travel to Washington for a vote around 11 a.m. EDT(1500 GMT).

On a call with fellow Democrats on Thursday afternoon, Speaker Nancy Pelosi urged House members not to do anything to delay the unprecedented economic aid package the Republican-led Senate backed by a unanimous 96-0 vote on Wednesday night.

Treasury Secretary Steven Mnuchin, who helped craft the package, also urged lawmakers to pass it quickly.

“This is the time that we want to see the government and that states all come together and execute on the largest financial package in the history of time,” he said on Fox Business Network.

The rescue package – which would be the largest fiscal relief measure ever passed by Congress – will rush direct payments to Americans within three weeks if the House backs it and Trump signs it into law.

The $2.2 trillion measure includes $500 billion to help hard-hit industries and $290 billion for payments of up to $3,000 to millions of families.

The legislation will also provide $350 billion for small-business loans, $250 billion for expanded unemployment aid and at least $100 billion for hospitals and related health systems.

VOICE VOTE SOUGHT

The rare but deep, bipartisan support in Congress underscored how seriously lawmakers are taking the global pandemic as Americans suffer and the medical system threatens to buckle.

Pelosi said House leaders were planning to fast-track the rescue plan by passing it via a voice vote on Friday. She had said that if there were calls for a roll-call vote, lawmakers might be able to vote remotely as not all would be able to be in Washington.

It was unclear whether Massie would block the measure.

“I’m having a real hard time with this,” Massie, an outspoken fiscal conservative, said on 55KRC talk radio in Cincinnati.

Democratic Representative Dean Phillips asked Massie on Twitter to let his colleagues know if he intended to delay the bill’s passage “RIGHT NOW so we can book flights and expend about $200,000 in taxpayer money to counter your principled but terribly misguided stunt.”

The United States surpassed China and Italy on Thursday as the country with the most coronavirus cases. The number of U.S. cases passed 82,000, and the death toll reached almost 1,200.

The Labor Department reported the number of Americans filing claims for unemployment benefits surged to 3.28 million, the highest level ever.

(Reporting by David Morgan, Doina Chiacu, Richard Cowan, Susan Cornwell and Patricia Zengerle; writing by Patricia Zengerle and Andy Sullivan; editing by Lincoln Feast.)