Millions of citizens in the US are in financial need due to the corona pandemic. A dispute in Congress threatens to expire the aid that is so important to them. But an agreement is within reach.
After a long struggle, Republicans and Democrats in the United States are about to adopt a multi-billion dollar corona aid package. If things went on like this and nothing got in the way, a vote could be held today, said Senate Democratic minority leader Chuck Schumer, the Wall Street Journal. Accordingly, an agreement has been reached on the powers of the US Federal Reserve (Fed) during the corona pandemic. Overall, the package should have a volume of $ 900 billion.
According to the report, the agreement should allow the Fed to continue to issue emergency loans without parliamentary approval. However, you would need the permission of the MPs to extend existing programs under the so-called Cares Act. This aid package, passed in March, included billions in aid for corporations in need and small and medium-sized enterprises, as well as direct payments to citizens and expanded unemployment benefits.
Dispute over Fed powers
The Republicans wanted to restrict the powers of the central bank to lend to companies and institutions. They fear that the US Democrats could use this route to channel funds to governments in the US states that they control. Democrats argue that restricting Fed powers would prevent President-elect Joe Biden’s new administration from stimulating the economy.
Before the agreement became known, the outgoing US President Donald Trump wrote on the online service Twitter: “Why is Congress not giving our people an economic stimulus program?”
More time for budget negotiations
The US Congress has been arguing about the aid program to overcome the coronavirus pandemic for months. So far, Congress has approved $ 3 trillion in measures. If he does not agree to the new budget and the aid package linked to it on Sunday, public life threatens to come to a standstill. The currently applicable emergency budget would expire at midnight local time. The federal institutions would run out of money.
The US budget year actually ends at the end of September. Congress had extended the current budget to December 11th this year to give the parties time to negotiate their budget until after the November 3rd presidential election. Since the MPs had not found a solution recently, the postponement was extended several times, most recently until midnight on Sunday.
