The second stimulus package for coronavirus is set to be introduced by Republicans on Monday, according to Treasury Secretary Steven Mnuchin, Saturday.
Aside from this, Mnuchin also stated that the second round of the stimulus checks worth $1,200 will be sent to Americans by August.
During his talk with reporters at the Capitol, the Treasury Secretary stated that US President Donald Trump has stated that the top priority should be focused on extending the unemployment benefit that is set to expire.
However, Mnuchin stated that while the benefit would be extended it will be reduced since he believes that giving a $600 unemployment benefit weekly would be a disadvantage. He added that giving such an amount may discourage people to go back to work.
Despite the fact that Democrats are yet to weigh in on the updated proposal from the White House and the Senate GOP, Mnuchin sounded optimistic during his conversation with the reporters, Associated Press reported.
Moreover, the secretary added that he recently had a conversation with Senate Minority Leader Chuck Schumer and House Speaker Nancy Pelosi before the negotiations on a broader deal begin next week.
Last week, Senate Republicans and the White House rushed to regroup and discuss their plans for the $1 trillion virus rescue bill as it collapsed due to the disagreements about its scope, size, and other details. The said virus rescue bill was expected to allocate $105 billion for school re-openings, benefits for business, and even additional money for testing.
While the republicans struggled with their proposal, the White House stated that the differences with the GOP Senators should be put aside and be more focused on providing aid and relief as advised by Trump.
With the $600 weekly benefit for those who lost their jobs, the Republicans were prompted to act. Meanwhile, the Democrats' proposal has been agreed on two months ago, and it was Pelosi's $3 trillion plan. However, with the unemployment benefits ending soon while many are still jobless due to the pandemic and the sudden surge of cases, both parties are now preparing to prevent economic and social fallout.
The Senate Republicans have proposed that the benefit should be extended but needs to be reduced to $200 weekly, however, the White House has stated that it should only be $100 per week. After a discussion, it was agreed that the benefit would be no more than 70% of the previous payment of the employee.
Stimulus Checks and Direct Payments
In addition, Mnuchin also stated that the formula for the qualifications for the $1,200 direct payments would still be the same as the previous bill. He added that the goal is to give out the majority of the payment by August in order to provide relief to the people, ABC News reported.
Meanwhile, administration officials stated that the overall package on the White House and Senate Republicans' proposal will remain at $1 trillion, which is still on par with the original proposal drafted by Senate Majority Leader Mitch McConnell.