Coronavirus stimulus checks: Democrats drafting new $2.2T relief package

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With just about a month left until the election and several days left before the House is scheduled to go on recess, Democrats have come into action on the next relief package. Democrats are preparing a new relief bill that would cost about $2.2 trillion and include coronavirus stimulus checks.

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Coronavirus stimulus checks: Democrats drafting new proposal

Rep. Richard Neal (D-Mass.), who is head of the Ways and Means Committee, is leading the effort to draft the new bill. This new bill could be brought up for voting as soon as next week, or by October 2, when the House is scheduled to go on recess for the elections.

“The contours are all there; I think it's about timeframe and all of that," Neal said Thursday, according to The Hill.  “The Ways and Means Committee wrote most of it to begin with. So we're just going to revisit a lot of it."

Interestingly, Democrats’ new proposal is expected to be in the range of $2.2 trillion, near to the amount that House Speaker Nancy Pelosi has been asking in the negotiations. This means the bill would be about $1 trillion less than the Democrats’ initial proposal introduced in May, called the HEROES Act.

This new bill from Democrats would include coronavirus stimulus checks, unemployment insurance, support for small businesses, and more. What other things the bill would offer is not known as yet.

Democrats’ new proposal: what does it mean?

The bill, however, is unlikely to get Republicans excited as they have long been opposing the demand of a costly relief package. Democrats are also aware of this. They probably see this bill as an opportunity to put pressure on the Republicans. The Democrats’ new bill would signal their desire to help the economy and Americans.

“It should send a signal to the public as to where we are, and it's more recent than [the HEROES Act],” Representative Pete Aguilar said, according to The Hill.

In would be interesting to see Republican’s response to this new bill. It is very likely that they could reject it outright, considering they have already trimmed their proposal from over $1 trillion previously to $500 billion. In July, Republicans introduced the HEALS Act costing about $1 trillion, but earlier this month, they came up with another proposal costing about $500 billion.

The White House previously praised the $1.5 trillion package introduced by the bipartisan group. But, it is also unlikely to support a package costing over $2 trillion.

The new bill comes at a time when Pelosi and Treasury Secretary Steven Mnuchin have agreed to resume negotiations on the next relief package. Mnuchin recently told the Senate Banking Committee that over the last few days he had spoken with Pelosi about 15 to 20 times on the CR (continuing resolution) “and we've agreed to continue to have discussions about the CARES Act.”