Proposal for $850 Billion Stimulus package
The Trump administration will ask Congress for an $850 billion stimulus package, the Washington Post reported Tuesday, to reinvigorate the U.S. economy after markets cratered and businesses pause operations as coronavirus spreads across the country, hurting employers and employees alike.
- Around $50 billion would be earmarked for the airline industry, the Postreported, citing two unnamed Trump administration officials.
- Other measures that could be included in the package, like a payroll tax, would be designed to inject cash into the economy, but it remains unclear what specific measures are included in the proposal.
- It also remains unclear how lawmakers will react to the White House’s proposal, with Democrats previously pushing back on the payroll tax cut, saying it wouldn’t help people who have lost their jobs due to the crisis.
- Treasury Secretary Steve Mnuchin is expected to reveal the plan to Senate Republicans Tuesday, after having told the group Monday he hopes the larger Senate will pass it by the end of the week.
- Not adjusting for inflation, the proposed package is bigger than the $700 billion stimulus package passed by Congress in 2008 financial crisis, according to the Post.
- Trump said during a Monday press briefing that the economy “may be” heading for a recession (a statement experts agree with), sending markets into a 12% nosedive.