• After a long day of talks, Senate Democrats and Republicans reached an agreement with the White House on a stimulus package that would now cost the government $2 trillion.
• On Monday, Democrats shot down a stimulus package designed by Republicans and the White House.
• The revised package would include an increase in unemployment pay as well as an extension to unemployment insurance.
• It would also provide $500 billion to companies but would bar President Donald Trump, White House officials, and Congress from taking out loans for their businesses.

Senate Leaders and the White House Reach a Deal

After long talks and worries that lawmakers would go home empty-handed Tuesday, Senate Democrats finally reached a historic $2 trillion stimulus package with Senate Republicans and the Trump Administration around 1:30 a.m. Wednesday.

The agreement, which comes after Senate Democrats blocked a different version of the bill on Monday, includes several noticeable differences.

While Republicans had sought to extend unemployment insurance for up to three months, Democrats convinced them to extend that program for up to four months. Additionally, the bill would reportedly expand eligibility to cover more people, including gig economy workers. 

People eligible for benefits will also see an additional $600 each week from the federal government, on top of their state benefits. On average, people receive $385 in state benefits each week while on unemployment.

The bill also includes $150 billion to hospitals and other health-care providers for equipment and supplies. According to Senate Minority Leader Chuck Schumer, the bill will also increase Medicare payments to all hospitals and providers.

As for direct checks, that breakdown remains unchanged. Adults making under $75,000 would receive two $1,200 checks and two $500 checks for each child. The first of those payments would go out on April 6.

People making above $75,000 would see a dip in that assistance, with payments phasing out altogether for people making more than $99,000 a year. 

Trump and Congress Can’t Benefit From Business Loans

The bill also provides loan options for both small and large businesses. 

Small businesses would receive more than $350 in aid. Notably, those loans would be federally guaranteed as long as a small business pledges not to lay off workers. If an employer continues to pay workers for the duration of the crisis, those loans would then be forgiven.

Big businesses would still receive about $500 billion to be used as back loans and assistance, a provision that originally led Democrats to vote down the previous version of the bill on Monday. 

However, this bill also contains a few key limitations.

The most buzzworthy is that Democrats won language barring any business owned by President Trump from applying for those loans. That includes both Trump hotels and Mar-a-lago. Democrats sought such a measure because of their concern that Trump might try to use this bill to help his businesses, especially since many of them are connected to the travel industry.

Because they barred Trump, the bill also went a step further by also barring White House officials as well as any member of Congress. 

Another limitation is that if a company does take out a loan, it will then be subject to a ban on stock buybacks through the term of the loan and for one year after. 

Republicans also agreed to allow for an oversight board and to create a Treasury Department special inspector general for pandemic recovery. That is largely an attempt by the Democrats to ensure companies limit executive bonuses as well as take steps to protect workers.

Will the Bill Help the Economy and Will It Pass?

As far as if this bill actually will help the economy, that’s still unclear. With an economy that is slowing down every day and with stocks plunging over the last month, there is worry that it may not do enough; however, with more of the details of this package, stocks did see an uptick Tuesday morning. 

Still, Congress is trying to move this bill into law as soon as possible. Reportedly, they’re rushing it through without public hearings or a formal review of the full bill.

If it passes through the Senate as expected, then it moves to the House of Representatives. Here, things could get a little trickier.

“This bipartisan legislation takes us a long way down the road in meeting the needs of the American people,” House Speaker Nancy Pelosi said on Wednesday. “House Democrats will now review the final provisions and legislative text of the agreement to determine a course of action.”

While Pelosi did say that the bill meets some of Democrats’ demands, she didn’t say how the House would vote. On Tuesday, as the agreement was being discussed among Senators and the White House, Pelosi said on CNBC that she hoped the House would pass it with unanimous consent.

While lawmakers are under extreme pressure to get a bill like this passed, unanimous consent may be a tall order for a $2 trillion bill that covers every aspect of the U.S. economy, especially because while the details of the bill have been released, the full document is still under wraps.

Because of that, it’s very possible that some lawmakers might hold off on passing the bill until a formal vote is held, and there have already been some concerns from both sides of the aisle.

If unanimous consent isn’t possible, some version—possibly a very similar version—of this bill will likely get passed; however, taking a formal vote could extend this process by several days. This is because representatives will likely be encouraged to wait an extended amount of time between their trips to the floor to vote.

From there, a couple things could happen. The House could pass a slightly different version. The House and the Senate would then need to hash out those details.

Or, the House could pass the legislation as is and go directly to Trump, who Mnuchin said would “absolutely, absolutely, absolutely” sign the bill.

See what others are saying: (The Washington Post) (The Los Angeles Times) (CNN)

• FEMA Administrator Peter Gaynor said Tuesday that the Defense Production Act will be used today to secure 60,000 coronavirus testing kits.
• This comes after days of backlash against President Trump who has been hesitant to use the act, which would compel private companies to manufacture highly-needed medical equipment.  
• Still, cases of the virus are rapidly increasing, especially in New York, where Gov. Andrew Cuomo says the lack of ventilators and other supplies will soon lead to deaths that could have otherwise been prevented.

The DPA and Trump’s Hesitation to Use It 

Federal Emergency Management Agency Administrator Peter Gaynor said Tuesday that the Trump administration will formally implement the Defense Production Act today to secure thousands of desperately needed coronavirus testing kids. 

Last week, President Donald Trump invoked the DPA, a Korean-War era provision that requires and provides incentives for private companies to prioritize federal government orders for products tied to national defense. So essentially, under this act, the government could order private manufactures to fulfill federal orders for critical medical equipment including ventilators, masks, and other supplies. 

But since signing the DPA, Trump has resisted actually using it, despite calls from politicians and medical associations for him to do so. The president has said he will only use the act in a “worst case scenario” and said that he’s concerned about nationalizing American businesses.

“We’re a country not based on nationalizing our business,” President Trump said at a press briefing on Sunday. “The concept of nationalizing our businesses is not a good concept.” 

He has also repeatedly said that invoking the act wasn’t needed because so many private companies have already been volunteering to manufacture supplies, though he did say Sunday that “we may have to use it someplace along the chain.”

On top of that, the president has insisted that state leaders should bear more responsibility for obtaining the live-saving equipment themselves. 

Calls For and Against DPA Use 

Cases of COVID-19 have continued to rise, leaving hospitals across the nation in distress. 

While several companies have actually been voluntarily redirecting their focus towards manufacturing or donating supplies, some have expressed concerns about doing so without clear guidance from the federal government that outlines what equipment is needed and where. 

Even with some companies like Tesla, Facebook, and Apple, stepping in to provide supplies, the need is still incredibly high and local officials have been pleading with the public for any and all help. 

In some cases, they’ve even had to pay hiked-up prices for personal protection equipment or had to compete against other states for supplies. 

But some of Trump’s advisors and business groups like the U.S. Chamber of Commerce have raised concerns about using the act. They argue that mandating production could hurt some companies, complicate supply chains of key products, and further hurt the economy. 

Others warned that the law isn’t a quick fix because it could take weeks or even months before facilities could reconfigure themselves to make these highly-needed goods. 

FEMA Admin Says DPA Will Be Used 

Still, Gaynor told CNN Monday, “We’re actually going to use the DPA for the first time today. There are some test kits we need to get our hands on.”

More specifically, he said triggering the act would help secure about 60,000 test kits. For reference, 1 kit alone serves roughly 300-400 patients. If what Gaynor told CNN is true, this would mark the first time the act has been used during the coronavirus pandemic. 

The FEMA Administrator also said the administration would insert “DPA language” into the mass contracts for the federal government’s order of 500 million personal protective masks.

“So we’re going to use it. We’re going to use it when we need it. And we’re going to use it today,” Gaynor reiterated. “We want to be thoughtful and meaningful on how we do it again for the best result,” he added.

However, Gaynor later went on Fox & Friends to say that the law would be used narrowly as “leverage,” and still asked for local officials to bear the brunt of the burden.  

“We ask every governor — if you can find it, buy it. We are ready to use the Defense Production Act,” he said. “If we need as it leverage, we have it as leverage now.”

NY Needs Help Now 

But securing more tests still doesn’t address those who are in desperate need of other life-saving equipment. New York, for instance, has been very public about their shortages. 

Cases around the state are already well over 25,000 and the spread doesn’t appear to be slowing. In fact, Governor Andrew Cuomo said during a Tuesday news conference that the rate of infections in the state is doubling about every three days.

He stressed that he believed New York is just 14-21 days away from its apex and will need 140,000 hospital beds on top of the 30,000 ventilators it already needs.

He said the state has “exhausted every option” to combat the spread of the virus and criticized FEMA, questioning why the DPA isn’t being used to produce ventilators. 

“FEMA says, ‘we’re sending 400 ventilators.’ Really? What am I going to do with 400 ventilators when I need 30,000?” Cuomo said. “You pick the 26,000 people who are going to die because you only sent 400 ventilators.”

Shortly afterward, Vice President Mike Pence admitted during a Fox News town hall that New York is “truly the epicenter of the coronavirus now in our country.”

He added, “We’re in the process of literally sending the entire national stockpile out.”

“Earlier today, FEMA from the national stockpile shipped 2,000 ventilators to the state of New York, and tomorrow there will be another 2,000 ventilators shipped from the national stockpile. We have a ways to go yet.”

See what others are saying: (Politico) (The WallStreet Journal) (CNBC) 

• Senate Republicans failed to pass a $1.8 trillion stimulus package after Democrats blocked the bill from moving forward in two separate procedural votes.
• The Democrats argue that the legislation would give too little to everyday people and hospitals and too much to corporations and businesses without oversight or worker protections.
• Five Republicans were forced to abstain from voting as they continue to self-quarantine after exposure to the coronavirus, including Sen. Rand Paul, who tested positive Sunday.

Stimulus Package

The Senate failed to pass a $1.8 trillion stimulus package Monday after Democrats voted unanimously to block the bill for the second time in the last 24 hours.

Senators voted 49-46, far below the 60 votes needed to move forward with the bill, which is intended to help prop up the economy as the coronavirus pandemic continues.

The stimulus package, which would be one of the largest in U.S. history, has been the subject of much partisan debate over the last few days.

While Republicans say it is essential to help the economy and working people, Democrats oppose the legislation because they believe that it does too much to help businesses and not enough for everyday Americans and hospitals.

The bill would provide about $250 billion for direct payments to households consisting of about $1,200 for each adult and $500 for each child. Those payments would phase out for people with incomes over $75,000.

The package also includes around $100 billion for hospitals and about $250 billion to help state unemployment insurance programs.

By contrast, the legislation would also create a $500 billion loan program for businesses, cities, and states while giving another $350 billion to small businesses.

In addition to arguing that the bill is too business-centric, Democrats also object to the lack of oversight.

Especially for the $500 billion lending program, which some Democrats are calling it a “slush fund,” because it would give the Treasury Department huge discretion to choose which firms get the money.

According to reports, some Democrats have alleged that the legislation would essentially give the department the sway to direct funds to companies that have appealed to the White House.

Democrats have additionally expressed concern that the bill does not have enough restrictions for companies that will receive that aid, specifically when it comes to worker protections.

They believe that without specific worker protections or any kind of oversight built into the legislation, companies who get the money could just fire their employees and pocket the taxpayer assistance.

President Donald Trump appeared to address the Democrats’ concerns on Sunday. Speaking to reporters, Trump said that he did not support corporate bailouts and wanted to help workers. But when asked if his businesses would seek government assistance if eligible, he would not rule out the possibility.

“I don’t know,” he said. “I just don’t know what the government assistance would be for what I have. I have hotels. Everybody knew I had hotels when I got elected. They knew I was a successful person when I got elected, so it’s one of those things.” 

Republicans in Quarantine

Efforts by Republicans and Senate Majority Leader Mitch McConnell (R-KY) were further complicated by the fact that five Republican senators are in self-quarantine and unable to vote.

On Sunday, Sen. Rand Paul (R-KY) confirmed that he had tested positive for the coronavirus.

Paul, who is the first senator to contract the virus, was the only member of the chamber to vote against a bipartisan deal to provide $8 billion in emergency coronavirus funding earlier this month.

Following Paul’s announcement, Republican Senators Mitt Romney and Mike Lee of Utah said that they would be self-quarantining after extensive exposure to Paul, though both said they had not exhibited symptoms at the time. 

Meanwhile, two other Republican senators— Cory Gardner of Colorado and Rick Scott of Florida— also separately quarantined themselves last week after being exposed to people who tested positive.

All five senators were unable to vote for the package on both Sunday and Monday. 

See what others are saying: (Axios) (The Washington Post) (NPR)