WASHINGTON (US) – Senate Republicans on Monday came out with a proposal to roll out a $1 trillion (£776 billion) coronavirus aid package. This paves the way for talks with Democrats on seeking ways to help Americans as unemployment benefits of the government expire this week.
Senate Majority Leader Mitch McConnell termed the proposal a “tailored and targeted” plan that is aimed at getting children back to school and employees back to work and protecting corporations from lawsuits. It also cuts the expiring unemployment benefits of $600 a week by two-thirds.
The plan invited the ire of both Democrats and Republicans. Democrats said it was too limited when compared to their $3 trillion proposal that passed the House of Representatives in May. Republicans, on the other hand, termed it very expensive.
He said the package includes $1,200 payments to Americans, as well as incentives for manufacturing personal protective equipment in the country.
The package also includes $190 billion for loans to help small businesses, and $100 billion for businesses operating seasonally.
Republicans are demanding to slash the unemployment benefit from the $600 per week. This is in addition to state unemployment payments. The benefit ends on Friday. They want it be slashed to $200 in addition to state unemployment payments.
The states, after two months will bring in a new formula to replace 70% of lost wages.
Unemployment benefits have been the lifeline for workers who lost their jobs and fuelled consumer-spending. The funds, which exceeded the wages of some workers, were criticised by Republicans, who said they encouraged people to remain home rather than go back to work.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field