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Pelosi Says No Stimulus Before Election If Deal Isn’t Struck By Tuesday

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  • On Sunday, House Speaker Pelosi said she was giving the White House until Tuesday to agree to a new stimulus deal if they want one passed before the election.
  • Any agreement is highly unlikely, and even if one were struck, Senate Majority Leader McConnell has refused to bring even the White House’s offer of $1.8 trillion for a vote. 
  • Economists warn that without another stimulus package soon, the economy will backslide even more, and waiting any longer could do serious long-term damage.
  • Millions of Americans are already hurting as most of the benefits from the CARES Act are long expired or set to expire soon.
  • Experts are also concerned that the recent COVID-19 spikes across the U.S. could also hurt the economy.

Pelosi Sets Deadline

House Speaker Nancy Pelosi (D-Ca.) announced Sunday that if lawmakers and the Trump administration do not reach a deal on a stimulus package by Tuesday, there will not be another round of coronavirus relief before the election.

While that deadline came after a meeting between Pelosi and Treasury Secretary Steve Mnuchin, where the two did seem to make headway on some issues, there are still a lot of key areas that need to be hashed out.

Despite this new deadline, after months of deadlock, there is really nothing that has happened over the last few days that would indicate they are closer to a deal. If anything, the waters have become more muddied in recent weeks following a series of abrupt shifts on the part of President Donald Trump.

On Oct. 6, Trump suddenly announced on Twitter that he would stop all negotiations until after he won the election. Just a few hours later, following significant backlash, he called for Congress to pass smaller bills like approving new stimulus checks.

Two days later, Trump tweeted that the negotiations for a full package were “moving along,” and called on both sides to, “Go Big!

On the same day, Mnuchin announced that the White House would increase its coronavirus stimulus offer to $1.8 trillion, which was up from their previous $1.6 trillion offer, though still down from the $2.2 trillion Pelosi asked for.

But a few hours after that, Trump went on Rush Limbaugh’s radio show and said that he, “would like to see a bigger stimulus package frankly than either the Democrats or Republicans are offering.”

Trump reiterated that call again while speaking on Fox News Thursday, while simultaneously blaming his own Treasury secretary for not offering enough money in the talks and suggesting, without any explanation, that China would pay for it.

However, Trump’s call for more appeared to go against the will of his own party. Within a matter of hours after Trump’s interview, Senate Majority Leader Mitch McConnell (R-Ky.) said he would not even bring the $1.8 trillion proposal for a vote.

The leader argued that the amount was much higher than what Republicans would agree to, and instead said he would advance a much smaller $500 billion package in the coming week. In other words, even if Pelosi and Mnuchin were to strike a deal, unless they drop it by about $1 trillion, it is almost certain that it would be blocked by Senate Republicans.

Economic Fallout

While the prospects of a pre-election deal remain increasingly slim, the need for another stimulus deal is becoming even more urgent by the day.

It has now been seven months since the last stimulus package, and any more delays will only do more damage to the economy and the American people. Economists have warned for months that without another stimulus injection, the modest economic recoveries the U.S. has made — in large part because of the CARES Act — will be undone in the short term.

In the long term, there will be lasting economic scars that could take months if not years to fully recover from.

The first stimulus package was not supposed to be a cure-all — it was supposed to be a short term fix. Now, many key parts of the coronavirus stimulus package passed in March, such as expanded unemployment benefits, aid to small businesses, and funding for state and local government, have either expired or run out — or are about to.

For example, while the extra $600 in federal unemployment benefits ended three months ago, there were other programs in the CARES Act that extended the amount of time that people could receive benefits.

Normally, people can only collect unemployment for 26 weeks, but the March bill extended that until Dec. 31. Without another stimulus package to extend that measure before the deadline, millions of people who still do not have jobs will simply stop receiving unemployment help.

That would be incredibly serious because already, millions of Americans are hurting, the economy is showing signs of slowing, and the impacts of not having any widespread, cohesive stimulus injection since March are clearly on display.

A recent Columbia University study found that early stimulus efforts, like the expanded unemployment benefits and the stimulus checks, kept 18 million people out of poverty, but when those resources dwindled and ended during the summer, poverty rates spiked drastically. Since May, 8 million Americans have fallen into poverty during the pandemic.

Similarly, according to another recent report from the Mortgage Bankers Association’s Research Institute for Housing America, more than 6 million households missed their rent or mortgage payments last month alone.

COVID Concerns

Separately, economists are also concerned that the recent, dramatic spikes in coronavirus cases all across the country will also have a negative effect on the already faltering economy.

Over the last few weeks, new daily COVID-19 infections have risen to their highest level since July, meaning the U.S. is now reporting numbers that are on par with the highest caseloads it has recorded through the entire pandemic.   

The case numbers are also rising at alarmingly rapid rates. According to reports, just since last month, daily new cases have risen more than 60%, and two-week averages show that cases are increasing in all but seven states. 

Despite the fact that health experts and officials have long warned that a fall and winter surge could undo any economic gains without proper preparation, President Trump has all but ignored these calls.

While speaking on Fox News Business Thursday morning, the president downplayed the new massive spikes and outright said he did not support the strict restrictions local officials have imposed in the past to try and limit the spread of the virus.

“We’re not doing any more lockdowns,” he said. “We’re doing fine.”

During a rally in Wisconsin on Saturday, Trump also hit on that point again, insisting that the U.S. is “rounding the corner” despite all evidence to the contrary.

“We’re doing great, we’re doing really well,” he added. “I wish you’d have a Republican governor because frankly, you got to open your state up. You got to open it up.”

Trump’s encouragement for Wisconsin to reopen even more came just one day after the state reported its highest number of new daily cases ever. Wisconsin is also reporting the fourth-highest per capita cases in the country and is home to four of the top seven coronavirus hot spots.

See what others are saying: (The Hill) (NPR) (The New York Times)

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NY Attorney General Says Investigation of Trump Business Found “Significant Evidence” of Fraud

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The state attorney general’s office accused the former president and his family business of falsely inflating the value of assets and personal worth to lenders, the IRS, and insurance brokers.


New York Attorney General’s Filing

New York Attorney General Letitia James announced late Tuesday she had “significant evidence” that former President Donald Trump and the Trump Organization “falsely and fraudulently” misrepresented the value of assets “to financial institutions for economic benefit.”

The allegations mark the first time James has made specific accusations against Trump and his business. They come as part of a nearly 160-page filing asking a judge to order the former president — along with Ivanka Trump and Donald Trump Jr. — to comply with subpoenas for the investigation after the family sued James to block her from questioning them.

The filing claims that Trump and the company inflated the value of six properties, including several golf courses and Trump’s own penthouse in Trump Tower, on financial statements to obtain favorable loans, tax deductions, and insurance coverage. 

The document adds that many of the financial statements were “generally inflated as part of a pattern to suggest that Mr. Trump’s net worth was higher than it otherwise would have appeared.”

James outlined several specific examples, such as a financial statement where the value of Trump’s Seven Springs estate in Westchester was boosted because it listed seven mansions on the property worth $61 million that did not actually exist.

That resulted in Trump receiving millions of dollars in tax deductions on that property, as well as another in Los Angeles.

In another notable instance, the attorney general’s office said that the $327 million value of Trump’s penthouse in Trump Tower was calculated off a financial statement that falsely reported his home was nearly triple its actual size.

While the statement claimed the apartment was 30,000 square feet, Trump had signed documents stating it was actually 10,996 square feet.

Alleged Direct Involvement

The allegation regarding the apartment is especially significant because it directly ties Trump himself to the accusations of financial wrongdoing. It is also not the only instance where Trump was implicated.

The filing additionally asserts that Trump Organization chief financial officer Allen Weisselberg — who was indicted last summer on multiple criminal charges relating to the business’ tax dealings — implied the former president was involved in finalizing the false valuations. 

According to the documents, Weisselberg “testified that it was ‘certainly possible’ Mr. Trump discussed valuations with him and that it was ‘certainly possible’ Mr. Trump reviewed the Statement of Financial Condition for a particular year before it was finalized.” 

Another top Trump Organization executive also testified that he was under the impression Trump reviewed the statements before they were finalized.

While the filing provides less direct links to Trump’s children, it does detail their involvement. Specifically, it alleges that Ivanka Trump rented an apartment at Trump Park Avenue and was given an option to buy it for $8.5 million, despite the fact that the property was valued at $25 million.

It also connected Donald Trump Jr. to some of the properties flagged by claiming investigators found evidence he “was consulted” on the Statements of Financial Condition.

Response

Citing these connections, James argued in a series of tweets Tuesday that it is necessary for her inquiry to question Trump and his two children on their alleged involvement.

“We are taking legal action to force Donald Trump, Donald Trump, Jr., and Ivanka Trump to comply with our investigation into the Trump Organization’s financial dealings,” she wrote. “No one in this country can pick and choose if and how the law applies to them.”

The former president has not yet addressed the matter, but a Trump Organization attorney representing Donald Trump Jr. and Ivanka Trump responded by arguing the subpoenas violate the constitutional rights of the family and that the filing “never addresses the fundamental contentions of our motion to quash or stay the subpoenas.”

In a statement Wednesday, the Trump Organization denied James’ allegations as “baseless” and accused her of trying to “mislead the public yet again.”

As far as what happens next, James’ office has said it “has not yet reached a final decision regarding whether this evidence merits legal action.”

Because James’s investigation is civil, she can sue Trump, his company, and his children, but she cannot file criminal charges. However, her probe is running parallel to a criminal investigation into the same conduct led by the Manhattan district attorney, who does have that power.

See what others are saying: (The Washington Post) (The New York Times) (The Wall Street Journal)

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Judges Uphold North Carolina’s Congressional Map in Major GOP Win

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The judges agreed that the congressional map was “a result of intentional, pro-Republican partisan redistricting” but said they did not have the power to intervene in legislative matters.


New Maps Upheld

A three-judge panel in North Carolina upheld the state’s new congressional and legislative maps on Tuesday, deciding it did not have the power to respond to arguments that Republicans had illegally gerrymandered it to benefit them.

Voting rights groups and Democrats sued over the new maps, which were drawn by the state’s Republican legislature following the 2020 census.

The maps left Democrats with just three of North Carolina’s 14 congressional seats in a battleground state that is more evenly split between Republicans and Democrats. Previously, Democrats held five of the 13 districts the state had before the last census, during which North Carolina was allocated an additional seat.

The challengers argued that the blatantly partisan maps had been drawn in a way that went against longstanding rules, violated the state’s Constitution, and intentionally disenfranchised Black voters.

In their unanimous ruling, the panel — composed of one Democrat and two Republicans — agreed that both the legislative and congressional maps were “a result of intentional, pro-Republican partisan redistricting.”

The judges added that they had “disdain for having to deal with issues that potentially lead to results incompatible with democratic principles and subject our state to ridicule.”

Despite their beliefs, the panel said they did not have a legal basis for intervening in political matters and constraining the legislature. They additionally ruled that the challengers did not prove their claims that the maps were discriminatory based on race.

Notably, the judges also stated that partisan gerrymandering does not actually violate the state’s Constitution. 

The Path Ahead

While the decision marks a setback to the plaintiffs, the groups have already said they will appeal the decision to the North Carolina Supreme Court.

The state’s highest court has a slim Democratic majority and has already signaled they may be open to tossing the map.

There are also past precedents for voting maps to be thrown out in North Carolina. The state has an extensive history of legal battles over gerrymandering, and Republican leaders have been forced to redraw maps twice in recent years.

A forthcoming decision is highly anticipated, as North Carolina’s congressional map could play a major role in the control of the House in the 2022 midterm elections if they are as close as expected. 

See what others are saying: (Politico) (The New York Times) (The Wall Street Journal)

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Biden Administration Says Private Insurers Will Have to Cover 8 At-Home Tests a Month

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The policy will apply to all the nearly 150 million Americans who have private insurance.


New At-Home Testing Policy

The Biden administration announced Monday that private health insurers will now be required to pay for up to eight at-home rapid tests per plan member each month.

Under the new policy, starting Saturday, private insurance holders will be able to purchase any at-home test approved by the FDA at a pharmacy or online. They will either not be asked to pay any upfront costs or be reimbursed for their purchase through their provider.

The move is expected to significantly expand access to rapid tests that other countries have been distributing to their citizens free of charge for months. 

According to reports, nearly 150 million Americans — about 45% of the population — have private insurance. 

Each dependent enrolled on the primary insurance holder’s account is counted as a member. That means a family of four enrolled on a single plan would be eligible for 32 free at-home rapid tests a month.

Potential Exemptions

All tests may not be fully covered depending on where they are purchased. 

In order to help offset costs, the Biden administration is incentivizing insurance providers to establish a network of “preferred” pharmacies and stores where people in the plan can get tests without paying out of pocket.

As a result, health plans that do create those networks will only be required to reimburse up to $12 per test if they are purchased out of that network, meaning people could be on the hook for the rest of the cost.

If an insurer does not set up a preferred network, they will have to cover all at-home tests in full regardless of the place of purchase.

During a briefing Monday, Press Secretary Jen Psaki said tests should be “out the door in the coming weeks.”

“The contracts [for testing companies] are structured in a way to require that significant amounts are delivered on an aggressive timeline, the first of which should be arriving early next week,” she added.

See what others are saying: (The New York Times) (NPR) (The Washington Post)

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