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Outlook on Potential Fifth Coronavirus Stimulus Package

April 28, 2020

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Outlook on Potential Fifth Coronavirus Stimulus Package

From the SPDP National Government Relations Team at Van Scoyoc Company

Four coronavirus stimulus packages have been passed to combat COVID-19 and to prop up the economy. Democrats believe a fifth stimulus is needed, Republicans have indicated they want to take a pause on more stimulus packages and deficit spending. 

While Congress begins discussions, here are several topics that could be included:  

One is additional funding to state and local governments. In previous stimulus packages, local governments around the county with a population below 500,000 were excluded from direct funding. Securing state and local money is one of their top priorities for the next bill for Democrats. Senate Majority Leader McConnell supports allowing states to declare bankruptcy as they face huge budget holes sparked by the economic impact of the coronavirus.

Second, Members of Congress have indicated their needs to changes to small business aid. While the Treasury Department has specified the nearly $660 billion already provided for the Paycheck Protection Program (PPP) will be the last tranche of money, lawmakers have proposed including new strings for additional funding that would tighten who can get help.

Democrats are pushing to include funding in the future stimulus that would ensure states have enough funding to carry out elections by mail. Republicans so far have resisted, arguing it would be vulnerable to fraud. 

Democrats also want to include a boost in food assistance. Specifically, in the interim coronavirus stimulus (the one most recently passed), Democrats wanted a 15 percent increase in Supplemental Nutrition Assistance Program (SNAP) benefits – Republicans, however, objected. Now, Senate Democrats have introduced their own proposal to increase the baseline for SNAP benefits by 30 percent and expand benefits to individuals living in U.S. territories.

Lastly, infrastructure. President Trump has supported infrastructure as a part of future coronavirus spending. There is bipartisan support for such a package, however questions about how a infrastructure package could be paid for have stalled discussions.

Currently, the Senate and House are both on recess. The Senate is slated to return on May 4. The House has not indicated when it will return, though House Democrats indicated it will not be before May 4.

Read More: The Hill

 

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