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Senate Republicans and the White House reached a “fundamental agreement” on the $1 trillion coronavirus stimulus plan on Wednesday. They decided to include $105 billion for schools and billions more in funds for coronavirus testing.
The educational funding would include $70 billion for schools K-12 (with some of that money only available to schools that physically reopen), $30 billion for colleges and universities and $5 billion that governors can use as they see fit. The money set aside for colleges and universities would not be tied to reopening plans.
Of the $70 billion for schools K-12, about $35 billion would go to all schools on a per capita basis. The remaining money would be set aside for school reopening plans and the costs associated with that.
"I think our agreement reflects our priorities, which is back to school, back to child care, back to work," said Senate Health Chairman Lamar Alexander, a Tennessee Republican, according to CNN.
That said, reopening schools has become a big focus for President Trump, who is meeting a fair amount of resistance as coronavirus cases surge and some school districts announce plans to begin the fall with virtual learning only.
In addition to school funding, the $1 trillion proposal will include liability protections, direct payments for individuals and families, more forgivable Paycheck Protection Program loans and incentives for companies to hire and retain employees.
This week, Treasury Secretary Steven Mnuchin and White House chief of staff Mark Meadows, with colleagues, have been hammering out the details of the next coronavirus relief package.
“We’ve now had three days of meetings and we’re completely on the same page,” Mnuchin told The Wall Street Journal.
Senate Majority Leader Mitch McConnell plans to unveil more details on Thursday. Then, they will move on to negotiations with House Democrats, who have already passed the HEROES Act, a $3 trillion proposal.
Final decisions have yet to be made on a payroll tax cut, which President Trump has been insisting on including as a way to stimulate the economy and help workers and companies. Senate Republicans refuse to support a payroll tax cut, arguing that it only helps those who are employed and fearing that it could deplete Medicare and Social Security trust funds.
“There are some differences of opinion on the question of the payroll tax cut and whether that's the best way to go,” McConnell said. “And so, we're still in discussion with the administration on that.”
While details about a second round of stimulus checks have not yet been revealed, McConnell said that direct payments will be coming. The income eligibility limit and the monetary amount of direct payments are still being discussed. It’s likely they will follow the parameters set by the CARES Act, which sent $1,200 payments to adults earning under $75,000 per year.
With the $600-per-week unemployment benefit subsidy set to expire at the end of July and the unemployment rate currently at 11 percent, lawmakers are also trying to move quickly to avoid a fallout that could affect 20 to 30 million people. Sen. Rob Portman mentioned the possibility of a two-month extension in emergency unemployment benefits at a level below the $600 per week, according to The Washington Post. Some Republicans want to cut the extra unemployment assistance to around $200 per week. This issue is still being debated.
Stay tuned for more details about the coronavirus relief package as Senate Republicans and the White House iron out additional key components. This stimulus plan would provide a foundation to begin negotiations with House Democrats and quickly and effectively get direct payments into the hands of Americans who need them.
