Pelosi is considering a smaller stimulus package – will it include stimulus checks or student loan relief?

House Speaker Nancy Pelosi is reportedly considering a scaled-down stimulus proposal after bipartisan negotiations halt.

House Democrats topped $ 3.4 trillion Act on the HEROES in May, largely on a party line vote. The bill would have provided a new round of stimulus checks of $ 1,200 and improved unemployment benefits of $ 600 per week. It is said to have injected additional funds into public health initiatives and small business assistance programs, and provided additional economic relief to states and cities, many of which are facing a budget crisis. The HEROES Act would also have extended the student loan payment and interest suspension of the CARES Act until September 30, 2021 (these benefits will now end on December 31, 2020 without congressional action), expanding these protections to include federal students FFEL program issued in trade loans and Perkins loans, and provided $ 10,000 in federal funds and private student loan forgiveness to borrowers in economic difficulty.

Republican senators rejected those proposals and instead came up with their own scaled-down stimulus proposals. The Senate GOP’s most recent bill included a cut in federal unemployment benefits by $ 300 per week, an additional $ 250 billion infusion into the paycheck protection program to support small businesses, $ 10 billion for child care and $ 10 billion to write off a loan issued by the CARES Act. to the US Postal Service. The bill also includes controversial liability protections for companies to protect them from coronavirus-related lawsuits. Democrats strongly opposed such a provision. The Republican bill provided no stimulus checks and no additional relief for student loans. It was not clear whether Republican senators had enough votes in their own caucus to pass the bill, but bipartisan negotiations then halted, leaving the bill effectively dead.

As first reported by The Washington Post and POLITICO, Pelosi is said to be under pressure from vulnerable moderate House Democrats facing tough re-election campaigns to pass something – even a reduced stimulus bill – in light of persistent unemployment and signs of the coronavirus pandemic. could worsen again as the weather gets colder and more people move inside. Details on the new bill are scarce, but would apparently include relief for airlines and other hard-hit sectors of the economy.

Improved unemployment benefits expired in July and have yet to be renewed, so any bill Pelosi introduced would almost certainly include unemployment benefits, although the amount of weekly benefits is unclear.

It remains to be seen whether the bill would include student loan relief or direct stimulus checks. Direct stimulus checks and blanket cancellation of student loans were among the costliest elements of the HEROES Act, and several moderate members of the House have managed to reduce some of that relief by imposing income restrictions. So if Pelosi is looking to dramatically lower the price of a stimulus bill, these are things that could potentially be further reduced or eliminated altogether. The extension of the CARES law suspension of student loan payments and interest until September 2021 may be easier to remember than a blanket (or even targeted) student loan forgiveness.

A draft bill could be published by next week.

Further reading

Centrist lawmakers offer stimulus compromise: $ 1,200 stimulus checks, improved unemployment benefits, no student loan relief

Senate stimulus bill: no second stimulus check and 5 other points to remember

Borrowers demand answers from DeVos over ‘general refusals’ to forgive student loans

Trump’s extended student loan relief will count toward loan forgiveness, Education Department says

Republicans Prepare New Stimulus Bill Without Student Loan Relief, Unemployment Benefit Cuts