The corona crisis is making the US economy difficult. Aid for millions of people has expired, and politicians cannot agree on new ones. Now the Democrats are starting another attempt. Finance Minister Mnuchin, meanwhile, appeals to release funds from the old stimulus package.
Up to $ 380 billion of the trillion dollar Corona aid package of the US Congress has not yet been used. This is the number given by Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin in a joint hearing before the Senate Banking Committee in Washington. She said the money could flow to households and businesses if MPs clear the way.
"It wouldn't cost a penny extra," Mnuchin said. The funds are part of the $ 2.3 trillion aid package that Congress put together in March. They have not yet been issued. Congress would have to approve their release for certain purposes.
Many economists expect further financial injections for the crisis-ridden US economy. Their projections range from $ 500 billion to $ 1 trillion. But growing tensions between ruling Republicans and Democrats make it unlikely that both sides will agree on a new aid package before the November 3rd presidential election.
Democrats start a new attempt
The Democrats in the House of Representatives are working flat out on a new program to stimulate the economy. The party’s ranks said that House majority leader Nancy Pelosi is now aiming for around $ 2.4 trillion – below the $ 3.5 trillion proposed by the Democrats in May. According to insiders, the package would include aid for airlines, restaurants and small businesses.
This could be voted on as early as next week, said MP Richard Neal, who chairs the House of Representatives Ways and Means Committee. It is unclear, however, whether the package would generate enough cross-party interest to bridge the divide between the parties.
"I think there are areas of support. Let's quickly say goodbye to things we can agree on," Mnuchin said at a congressional hearing. "I believe there is significant bipartisan support for legislation that supports children and jobs."
A $ 300 billion Republican proposal stalled in the Senate earlier this month; Democrats said the proposal was insufficient to meet the needs created by the pandemic.
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