Congress Faces Pressure to Pass Another Round of Direct Checks

WASHINGTON. — Congress faced further pressure Tuesday from President-elect Joe Biden, economists and civic groups, to pass another stimulus plan, with a new round of direct checks, five weeks after 12 million people lose their money. unemployment benefits.

Negotiations in Congress remain stalled because Democrats and Republicans cannot agree on the amount and scope of the new economic stimulus plan.

A group of more than 125 economists today urged lawmakers in an open letter to approve another round of checks for $ 1,200

amid the COVID-19 pandemic.

"Unless policy makers act quickly to respond to the crisis on the proper scale,

experts, several of them from the sector, said in the letter. financier and former Federal Reserve officials.

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Legislators must "use all available tools to revitalize the economy, including direct payments, which are one of the fastest, most equitable, and most effective ways to get families and the economy back on track," they added.

Currently, more than 20 million people receive unemployment benefits, of which 60%, or 12 million,

The first economic stimulus plan, designed to help families and businesses affected by the COVID-19 pandemic, included a round of direct checks for $ 1,200 and loans for small businesses.

But many of the programs have already exhausted their funds, or are close to it.

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Speaking to the press, a spokesman for Biden's transition team, Andrew Bates, said that the president-elect "fully supports" the Speaker of the House of Representatives, Nancy Pelosi, at the head of the negotiations.

In this way, Bates denied press reports that Biden would be willing to

There are 36 days until the end of the year, and there is no progress in the negotiations: Democrats push for a stimulus package of at least a trillion dollars, but Republicans insist on cutting that amount in half.

Last month, to appease conservatives, the Democratic-controlled lower house passed a modified version of its "Heroes Act" bill, which included a second round of direct checks, and an extension of unemployment benefits.

But like the first version they passed last May, this one has also not had support from Republicans in the Senate, whose $ 500 billion bill does not include another round of checks or small business grants or an extension of the unemployment benefits.

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In the best of cases, Congress could vote on a consensual solution in the second week of December.

With the holidays approaching, however, it is most likely that negotiations will start again next year.

Hispanics ask for help

Experts consulted on Tuesday by Noticias Telemundo agreed that both parties must find "common ground" to avoid the collapse of the economy next year. 

Both sides of the debate "agree that the unemployed and small businesses need help.

But Republicans insist on giving high priority to protecting businesses from lawsuits, while Democrats emphasize workers and local and state governments." explained Joe Minarik, senior vice president for economic research at The Conference Board.

"Neither party wants to settle for consensus issues for fear that this will destroy their advantages in the negotiation" to achieve concessions, Minarik lamented, adding that

.

According to the UnidosUs group, eight months after the pandemic,

especially in the service sector, where 24% of the workforce is of Latino origin.

The sector has lost nearly a quarter of jobs since last March.

“Latinos have an unemployment rate higher than their pre-pandemic level, but they went to the polls thinking that legislators would prioritize short-term economic stimulus and long-term economic recovery,” explained Orson Aguilar, analyst politician of UnidosUs.

About 64% of Latinos in Texas, Arizona and Florida went to the polls motivated by the economic crisis, according to a joint exit poll by UnidosUs and Latino Decisions.

In that poll, Latinos asked for another round of direct checks, more aid for small businesses, unemployment benefits, and funding for state and local governments.

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For his part, Olugbenga Ajilore, an economist at the Center for American Progress, pointed out that rates of infections and deaths from COVID-19 have skyrocketed and "the situation is now worse" than when Congress approved the first reactivation plan in March, although the national unemployment rate is around 7%. 

"It is vital that Congress do something so that homes, businesses and governments can get through this winter ...

many minority communities are having a hard time in the labor market, with higher unemployment rates, including Latina women," said the economist.

Congressional inaction will jeopardize other programs that also expire at the end of December, including the additional $ 600 a week unemployment pay;

aid for contractors and self-employed workers;

a moratorium on evictions for those unable to pay their rent or mortgage, and deferral of federal student loan payments.

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Last week, Biden highlighted the urgency for Congress to approve the stimulus plan as soon as possible, taking into account the new wave of coronavirus outbreaks that puts the economic recovery at greater risk.

In fact, several experts have warned of the possibility of a deepening recession.

If Congress cannot reach an agreement, it is likely that Biden will take action on the matter once he is sworn in on January 20.