President Trump speaks to the media in the press briefing room at the White House on March 15.
(Updated: 8:55 a.m. EST, March 17, 2020)
Topline: 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 Post reported, 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.
Crucial quote: “I think the assumption’s going to be that we’re going to do something, it should be big,” Sen. Marco Rubio (R-FL) told the Post after leaving Monday night’s meeting with Mnuchin.
Key background: Although Trump has been pushing for the payroll tax cut for several weeks, lawmakers have been discussing the country’s need for a larger stimulus package to blunt the blow of coronavirus. A separate, revised coronavirus relief bill—including free coronavirus testing, two weeks of paid sick leave and strengthened unemployment assistance, among other measures—passed the House Monday night, and the Senate should be voting on it later this week. American life has essentially ground to a halt as the CDC advises against any gatherings over 10 people. Schools and businesses have closed, and a large number of the population are working from home, while students engage in remote learning. As of Tuesday morning, over 4,660 cases of coronavirus are confirmed in the U.S., with 85 deaths, according to data from Johns Hopkins University.
Further reading:
Boeing Seeks Government Aid; U.S. Airlines Plead For $58B As They Say They May Run Out Of Money By June 30 (Jeremy Bogaisky)
