US Congress to approve $2.4 trillion Spending Package on Monday Night

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On Monday, US Congress has announced a mammoth agreement on a roughly $2.4 trillion spending package. It includes $900 billion in coronavirus relief after a half-year stalemate, securing another tranche of aid as a surge in COVID-19 infections. The House is expected to move swiftly to pass the bill on Monday night. The US Senate Majority Leader Mitch McConnell gave lawmakers and their offices just a few hours to review the massive 5,593-page bill. A government shutdown would begin at midnight if Congress fails to pass the bill or another temporary spending measure. The measure includes about $325 billion in small business relief, including $284 billion in forgivable loans for small businesses through the Paycheck Protection Program. It is an extension of boosted federal unemployment benefits at $300 a week through March 14, 2021, and a second $600 stimulus check for Americans earning less than $75,000.

US Senate leaders announced the 11th-hour deal Sunday evening after days of frenzied in-person negotiations on Capitol Hill between House Speaker Nancy Pelosi, Senate Majority Leader Mitch McConnell, House Minority Leader Kevin McCarthy, and Senate Minority Leader Chuck Schumer. On Monday, US Treasury Secretary Steven Mnuchin said he expects the federal government to start issuing checks to millions of Americans next week. The legislation includes $45 billion for transportation needs, $82 billion for schools, $20 billion for vaccine distribution, $13 billion for food assistance, and $25 billion in rental assistance. It also extends an eviction moratorium from the Centers for Disease Control and Prevention that was poised to sunset at the end of the year through Jan. 31, 2021. The legislation excludes 2 of the thorniest issues including funding for state & local governments and a liability shield for businesses against coronavirus-related lawsuits.

It is noteworthy that both chambers are expected to approve the measure. It will keep the government funded for the remainder of the fiscal year and send it to President Trump’s desk for his approval. Democratic leaders have made it clear they viewed the package as a critical first step in boosting the economy’s recovery from the pandemic. On Monday, Pelosi said, “We will need to do more”. Mnuchin said, “The direct payments get into the economy very quickly. This is a large bill and it has a little bit of everything for everybody”. It is noteworthy that job growth in the country is slowing as the economy created just 245,000 new jobs in November. The $900 billion coronavirus relief bill brings the total amount of government spending in response to the pandemic to more than $3.3 trillion.