On The Money: Last-minute complaints threaten $2T stimulus | What to know about business loans, relief checks in deal | Economists fear downturn will be worse than Great Recession

On The Money: Last-minute complaints threaten $2T stimulus | What to know about business loans, relief checks in deal | Economists fear downturn will be worse than Great Recession
© Getty Images

Happy Wednesday and welcome back to On The Money. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

Write us with tips, suggestions and news: slane@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @NJagoda and @NivElis.

ADVERTISEMENT

 

THE BIG DEAL-- Last-minute complaints threaten $2T Senate economic rescue bill: A round of eleventh-hour objections is throwing a curveball into the Senate's consideration of a mammoth stimulus package. 

Senate leadership announced the deal on the $2 trillion bill shortly after 1 a.m., and want to pass it Wednesday as they face intense pressure to take steps to reassure an American public and an economy rattled by the coronavirus. 

But a brewing fight over a deal on unemployment provisions is threatening to open the door to a push for broader changes to the bill, which was negotiated by Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellCoronavirus pushes GOP's Biden-Burisma probe to back burner Struggling states warn coronavirus stimulus falls short Hillicon Valley: Apple rolls out coronavirus screening app, website | Pompeo urged to crack down on coronavirus misinformation from China | Senators push FTC on price gouging | Instacart workers threaten strike MORE (R-Ky.), Minority Leader Charles SchumerCharles (Chuck) Ellis SchumerTexas man arrested for allegedly threatening Democrats over coronavirus bill Pelosi not invited by Trump to White House coronavirus relief bill's signing COVID-19, Bill Barr and the American authoritarian tradition MORE (D-N.Y.) and Treasury Secretary Steven MnuchinSteven Terner MnuchinSunday shows preview: Lawmakers, state governors talk coronavirus, stimulus package and resources as pandemic rages on Struggling states warn coronavirus stimulus falls short Trump asserts power to decide what info inspector general gives Congress about stimulus package MORE

The Hill's Jordain Carney explains here.

 

ADVERTISEMENT

Inside the Senate bill: 

  • The revamped Senate proposal will inject approximately $2 trillion into the economy, providing tax rebates, four months expanded unemployment benefits and a slew of business tax-relief provisions aimed at shoring up individual, family and business finances.
  • The deal includes $500 billion for a major corporate liquidity program through the Federal Reserve, $377 billion in small business aid, $100 billion for hospitals and $150 billion for state and local governments.
  • It will also give a one-time check of $1,200 to Americans who make up to $75,000. Individuals with no or little tax liability would receive the same amount, unlike the initial GOP proposal that would have given them a minimum of $600.

 

LEADING THE DAY

How the business loan program would work in the $2T coronavirus package: The final version of the $2 trillion coronavirus stimulus bill devotes hundreds of billions of dollars in support of loans to companies that are intended to keep them from failing and laying off workers.

The bill includes a variety of mechanisms for businesses of different sizes. Among the most important is a $367 billion program aimed at keeping the country's unemployment rate from skyrocketing.

"We have never done anything like this before," said Sen. Pat ToomeyPatrick (Pat) Joseph ToomeyNSA improperly collected US phone records in October, new documents show Overnight Defense: Pick for South Korean envoy splits with Trump on nuclear threat | McCain blasts move to suspend Korean military exercises | White House defends Trump salute of North Korean general WH backpedals on Trump's 'due process' remark on guns MORE (R-Pa.), a conservative who would not normally be expected to back a $2 trillion spending bill. "The idea is to encourage these companies to keep workers on the payroll."

The Hill's Niv Elis explains how it works here.

Read more: Stimulus bill to prohibit Trump family, lawmakers from benefiting from loan programs

 

Questions and answers on relief checks: Direct payments to Americans are a key component of the historic $2 trillion coronavirus relief deal announced Wednesday.

The one-time payments are designed to help cover expenses for people experiencing financial setbacks due to the pandemic and the government’s efforts to prevent its spread.

The Hill's Naomi Jagoda has five questions and answers on the stimulus checks.

Economists fear downturn will be worse than Great Recession: Economists are now in broad agreement that the downturn stemming from the coronavirus will surpass the Great Recession in intensity as fallout from the pandemic ravages businesses large and small.

What's less certain, though, is how long the contraction will last and how quickly the world's largest economy will be able to bounce back once it's over.

"The question is: How long does it last, the social distancing," said Louise Sheiner, policy director for the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution. "Nobody really knows. We're all flying blind here. This is something really different than we've ever seen."

Niv tells us why here.

 

GOOD TO KNOW

ADVERTISEMENT

 

ODDS AND ENDS

  • Egg producers have raised prices in response to short supplies and heavy demand from panic-buying consumers during the coronavirus outbreak.