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
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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 talks on life support as parties dig in, pass blame Jobs report poised to light fire under COVID-19 talks Overnight Health Care: Ohio governor tests positive for COVID-19 ahead of Trump's visit | US shows signs of coronavirus peak, but difficult days lie ahead | Trump: COVID-19 vaccine may be ready 'right around' Election Day MORE (R-Ky.), Minority Leader Charles SchumerChuck SchumerCoronavirus talks on life support as parties dig in, pass blame Senate Democrats push to include free phone calls for incarcerated people in next relief package Trump backs plan to give airlines another billion in aid MORE (D-N.Y.) and Treasury Secretary Steven MnuchinSteven Terner MnuchinCoronavirus talks on life support as parties dig in, pass blame On The Money: Pessimism grows as coronavirus talks go down to the wire | Jobs report poised to light fire under COVID-19 talks | Tax preparers warn unemployment recipients could owe IRS Top Democrats say postmaster confirmed changes to mail service amid delays MORE

The Hill's Jordain Carney explains here.

 

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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 ToomeyDunford withdraws from consideration to chair coronavirus oversight panel GOP senators push for quick, partial reopening of economy NSA improperly collected US phone records in October, new documents show 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

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ODDS AND ENDS

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