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Democrats Reject $916 Billion White House Stimulus Proposal That Trades Weekly Unemployment Benefits for One-Time Checks

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  • Treasury Secretary Steven Mnuchin submitted a $916 billion White House COVID-19 relief proposal Tuesday that trades $300 in weekly unemployment benefits for a one-time $600 payout to Americans.
  • Top Democrats swiftly rejected the proposal as “unacceptable.” Meanwhile, top Republicans have suggested a willingness to accept the deal.
  • Without Democratic support, the White House proposal is likely dead on arrival. 
  • That means the last hope for Americans to receive some form of stimulus relief before the end of the year rests with a $908 billion bipartisan proposal, which has not yet been finalized.
  • The lack of a deal comes as eviction moratoriums are set to expire on Jan. 1, potentially resulting in millions of Americans losing their homes amid the pandemic and during winter.

One Time Payment VS. Additional Unemployment Benefits

Treasury Secretary Steven Mnuchin proposed a $916 billion COVID-19 relief package on Tuesday that would swap $300 weekly unemployment benefits for a one-time $600 payout to Americans. 

The deal would also give Americans $600 per child, but by largely not incorporating weekly unemployment benefits, it chops unemployment spending to $40 billion as opposed to the $180 billion that has been proposed in a bipartisan relief bill totaling $908 billion. 

Top Democrats quickly denounced the White House-backed package. Speaker of the House Nancy Pelosi (Ca.) and Senate Minority Leader Chuck Schumer (NY) described it as “unacceptable” in a joint statement.

“The president’s proposal must not be allowed to obstruct the bipartisan congressional talks that are underway,” they said. 

Top Republicans like Senate Majority Leader Mitch McConnell (Ky.) and House Minority Leader Kevin McCarthy (Ca.) have reportedly been much more receptive to Mnuchin’s proposal.

“It’s a very good offer,” McCarthy told reporters. “It focuses on the things that need to be there.”

While the final details of the bipartisan $908 billion plan have still yet to be published, it does include a provision that guarantees an additional $300 a week in expanded unemployment benefits. It also currently includes provisions for $288 billion in loans to small businesses through the Paycheck Protection Program and other similar programs, $25 billion in housing assistance, $160 billion for state and local governments, and short-term federal protections for businesses from coronavirus-related lawsuits.

What’s not included? The one-time, direct payments.

In March, the government sent Americans  $1,200 through the CARES Act.

Lawmakers on both sides of the aisle have criticized the $908 billion bipartisan bill for not including the direct payments. In fact, Sen. Bernie Sanders (I-Vt.) said he would vote against any relief bill that doesn’t include a direct payment.

Meanwhile, Sen. Josh Hawley (R-Mo.) said Tuesday that he doesn’t understand why other lawmakers are “pretty dug in on the idea of not including checks.”

“I see them saying things like, ‘This is an emergency relief bill,’” he added. “I don’t know what’s more of an emergency than working people and families who are having to get into food lines… I don’t understand that logic at all.”

Where Does McConnell Stand?

While Pelosi and Schumer have both agreed to that bipartisan $908 billion package as a basis for negotiations, McConnell has refused to embrace it.

In fact, Tuesday was the first time that McConnell has offered any real concessions in months. That happened when McConnell offered to drop two controversial provisions that have left Democrats and Republicans at odds and stalled a final package.

The first involves passing liability protections for businesses that reopen during the pandemic. Republicans have argued that such a provision is necessary to protect small businesses from lawsuits; however, Democrats have rejected that idea, arguing that protections would potentially allow employers to endanger their employees.

The second involves Democrats’ demand that the federal government allocate funding for state and local governments. Some Republicans have labeled this provision a “blue-state bailout,” arguing that the federal government shouldn’t swoop in to save states with bad budgeting.

McCarthy said Tuesday that a final bill should include either both of these provisions or neither. Mnuchin’s proposal, as well as the $908 billion bipartisan plan, includes both provisions.

“We know the new administration is going to be asking for another package,” McConnell said Tuesday before Mnuchin’s proposal went public. “What I recommend is we set aside liability, and set aside state and local, and pass those things that we agree on, knowing full well we’ll be back at this after the first of the year.”

Democrats have largely written off that concession. In fact, Schumer argued the state and local government funding proposal has had much more bipartisan support than the business liability provision. 

With Democrats also refusing to budge by giving up the provision to provide additional unemployment benefits, it seems like this White House proposal is likely dead on arrival. 

That means the last hope for government relief before the end of the rests on the bipartisan $908 billion stimulus bill, but the problem is that it still hasn’t been finalized. 

It was originally thought that the bill might be published Monday. When that didn’t come, many believed it would come Tuesday, but as of now, it’s still being negotiated.

The delay comes as the House voted Wednesday to stave off a scheduled government shutdown from this Friday to next week. Amid COVID-19 relief, Congress is also trying to negotiate a massive funding bill for the new fiscal year. 

Eviction Moratoriums Up On Jan. 1

Time is running out, and it is unclear how McConnell will respond to the bipartisan bill once it’s finalized. 

Tens of millions of people are still out of work. Eviction moratoriums are scheduled to expire at the end of this month. According to Moody’s Analytics, on average, about 12 million Americans are nearly $6,000 behind on payments. Some estimates even report that as many as 20 million tenets are at risk of eviction. 

While President-elect Joe Biden has promised to sign executive orders extending eviction moratoriums and even advocated for rent forgiveness on the campaign trail, he doesn’t take office until Jan. 20. 

Some states like California have moratoriums past Jan. 1 and have now introduced proposals to extend their moratoriums even further. Along with some other states, it has also instituted grace periods for tenets to pay back rent. 

Even if that 20 million number ends up being much more conservative in reality, it could still mean millions of people facing eviction filings at the beginning of next month.

“The economic damage created by this pandemic will be many times more severe if we lose faith that the government has our back,” Moody Chief Economist, Mark Zandi, told The Washington Post. “The reality on the ground is going to be very dark, with people losing homes in the dead of winter during a pandemic.” 

According to an August analysis by the centrist think tank Urban Institute, another round of stimulus checks could keep up to 6.3 million people out of poverty.

See what others are saying: (The New York Times) (Business Insider) (CNN)

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Matt Gaetz Reportedly Venmo’d Accused Sex Trafficker, Who Then Sent Money To Teen

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  • A report published by The Daily Beast Thursday alleges that Rep. Matt Gaetz (R-Fl.) sent $900 through Venmo to accused sex trafficker Joel Greenberg, who then used the funds to pay three young women, including one teenager.
  • Gaetz is currently under federal investigation as part of a broader inquiry into Greenberg, a former politician who has been charged with 33 counts, including sex trafficking an underage girl.
  • Investigators are reportedly looking into the involvement of politicians with women who were recruited online for sex and paid in cash, as well as whether Gaetz had sex with a 17-year-old girl and violated sex trafficking laws by paying for her to travel with him.
  • Greenberg’s lawyer did not comment on the new allegations but said Thursday his client would soon enter a plea deal and implied that Greenberg would testify as a witness against Gaetz. Meanwhile, Gaetz has accused The Daily Beast of spreading “rumors, gossip and self-serving misstatements.”

Gaetz’s Alleged Venmo Payments 

Rep. Matt Gaetz (R-Fl.) allegedly sent money via Venmo to accused sex trafficker Joel Greenberg, who then used the money to pay three young women, including at least one teenage girl, according to a new report from The Daily Beast.

Greenberg, a former local Flordia politician and an associate of Gaetz, was indicted last summer on 33 counts, including sex trafficking a 17-year-old girl. He initially pleaded not guilty to the charges, but his lawyers said in court Thursday that he would plead guilty as part of a plea deal.

Legal experts say the move almost certainly indicates that Greenberg plans to cooperate as a witness against Gaetz, who is currently under investigation by the Justice Department as part of a broader probe into Greenberg.

According to The New York Times, among other things, the DOJ inquiry is looking into their involvement with multiple women who were recruited online for sex and paid cash, as well as whether Gaetz had a sexual relationship with a 17-year-old girl and paid for her to travel with him in violation of sex trafficking laws.

Investigators reportedly believe that Greenberg met the women through a website for people willing to go on dates in exchange for gifts and money, and then arranged for them to meet with himself and associates including Gaetz, The Times reported.

The new report from The Daily Beast, published Thursday, appears to support this narrative. According to the outlet, which viewed the transactions before they were made private this week, Gaetz sent Greenberg two late-night Venmo payments totaling $900 in May 2018. 

In the text field of the first payment, Gaetz wrote “Test.” In the second, he asked Greenberg to “hit up” a teenager who he allegedly referred to by her nickname. The Daily Beast did not publish the name of the girl “because the teenager had only turned 18 less than six months before.”

The next morning, Greenberg transferred a total of $900 to three different young women using the same app.

One of the transfers was titled “Tuition,” and the other two were both listed as “School.” The Daily Beast also said it was able to obtain “partial records” of Greenbergs Venmo, which is not publicly available.

Those records, the outlet reported, show that the two men are connected through Venmo to at least one other woman who Greenberg paid with a government-funded credit card, and at least two other women who received payments from Greenberg.

Ongoing Investigation

Gaetz, for his part, has not directly addressed the latest allegations. A representative from the Logan Circle Group, an outside PR firm, provided The Daily Beast with a statement from the congressman.

“The rumors, gossip and self-serving misstatements of others will be addressed in due course by my legal team,” the statement said, with the firm also informing the outlet that their lawyers would be “closely monitoring your coverage.”

Greenberg’s defense attorney, Fritz Scheller, also declined requests to comment, but during a press conference Thursday, he implied that the plea deal his client is expected to accept spelled trouble for Gaetz.

“I’m sure Matt Gaetz is not feeling very comfortable today,” Scheller said.

The Daily Beast story also comes amid reports that that the FBI has widened its probe of Gaetz. According to The Times, sources familiar with the inquiry have said investigators are also looking into a trip he took to the Bahamas with other Florida Republicans and several women.

Sources said the trip took place shortly after Gaetz was elected to Congress in 2016, and that the FBI has already questioned witnesses about whether the women had sex with the men in exchange for money and free travel.

It is illegal to trade sex for something of value if prosecutors can provide the exchange involved force, fraud, or coercion.

The Times also reported that investigators are now additionally looking into Gaetz’s alleged involvement in discussions to run a third-party candidate in a State Senate race to make it easier for an associate of his who was running for the seat to win.

The act of recruiting so-called “ghost candidates” who run for office purely to divert votes from one candidate is not usually illegal. However, paying a ghost candidate is normally considered a violation of campaign finance laws.

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

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Biden Announces Executive Actions on Gun Violence

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  • President Biden unveiled several executive actions on Thursday to address gun violence in America, which he described as “an epidemic” and “an international embarrassment.”
  • Biden’s measures include new limits on “ghost guns,” which are built from separate parts and usually do not have traceable serial numbers, as well as stabilizing braces, which functionally turn pistols into more lethal weapons.
  • Biden also said he would direct the Justice Department to publish a model for states to use in implementing “red flag” laws that allow law enforcement or family to petition a court to temporarily block a person in crisis from accessing firearms. 
  • The president characterized these actions as first steps, noting that congressional approval will be needed for his agenda and urging the chambers to take action.

Biden’s Plan for Gun Violence

President Joe Biden announced a series of executive actions on Thursday aimed at addressing gun violence in America.

“Gun violence in this country is an epidemic, and it’s an international embarrassment,” he said in remarks from the Rose Garden. “The idea that we have so many people dying every single day from gun violence in America is a blemish on our character as a nation.”

Among other measures outlined, the president said he will tighten restrictions on so-called “ghost guns,” which are firearms built at home by buying individual parts or kits to assemble guns that often lack serial numbers, making them hard to identify and trace.

Another rule will require devices to meet the requirements of the National Firearms Act if they are marketed as a stabilizing brace that can functionally turn a pistol into a short-barreled rifle. The alleged shooter who killed 10 people in Boulder last month appeared to have used a pistol with an arm brace, which Biden said made the weapon more stable and accurate.

Additionally, Biden will also direct the Justice Department to publish a model for states to use to enact “red flag” laws, which allow family members or law enforcement officials to petition a court to temporarily ban a person in crisis from accessing firearms. He will also as require the agency to publish an annual report on firearms trafficking.

In addition to those actions, the president said that he will nominate gun control advocate David Chipman to head the Bureau of Alcohol, Tobacco, Firearms and Explosives, which has not had a permanent director since 2015. 

Finally, Biden also emphasized that his administration will invest in community violence intervention programs. That includes proposing $5 billion for the initiatives over the course of eight years as part of his infrastructure plan.

Mounting Press and Continued Gridlock

Biden’s announcement comes as he is facing pressure from gun control activists and Democrats to act on gun violence following the mass shootings in Atlanta and Boulder.

Many have also condemned the president for not making gun control a top priority for his first days in office, as he promised during his campaign.

According to a recent ABC News/Ipsos poll, 57% of Americans disapprove of the way Biden has handled gun violence so far, and two-thirds “believe reducing gun violence should be a higher priority than protecting the right to own a wide variety of guns.”

Biden, for his part, has repeatedly pressured Congress to take action on gun violence, specifically pointing to two bills passed by the House last month. Both were dead on arrival in the divided Senate. In his remarks Thursday, the president characterized the actions he outlined as the first steps.

“This is just a start, we have a lot of work to do,” he said. “We’ve got a long way to go, it seems like we always have a long way to go.”

However, he also acknowledged that further, substantial action will require the approval of Congress, which he urged to close background check loopholes, ban assault weapons, and narrow protections for gun manufacturers from litigation. 

See what others are saying: (The Washington Post) (NBC News) (USA Today)

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Matt Gaetz Reportedly Asked Trump’s White House for Blanket Preemptive Pardons

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  • The New York Times reported Tuesday that Rep. Matt Gaetz (R-Fl.) allegedly asked former President Trump to preemptively pardon him and unknown congressional allies for any possible crimes they might have committed.
  • The request reportedly happened the same time federal investigators started looking into whether Gaetz had a sexual relationship with a 17-year-old girl in violation of sex trafficking laws, though it is unclear if either Gaetz or the White House were aware of the inquiry at the time.
  • Gaetz denied that he privately asked for a pardon in connection with the investigation, and Trump said the congressman had “never asked [him] for a pardon.”

Gaetz Scandal Deepens

U.S. Rep. Matt Gaetz (R-Fl.) allegedly asked former President Donald Trump to grant blanket preemptive pardons for any crimes he or his other allies in Congress may have committed, according to a report from The New York Times published Tuesday.

Four people familiar with the matter told the outlet that the ask came around the same time Gaetz was publicly calling for broad pardons. About two weeks after Trump lost the election, the congressman publicly said that he should “pardon everyone” before he left office, or they would be targeted by the “radical left.”

At the time, federal investigators from the Justice Department had already begun looking into whether he had a previous sexual relationship with a 17-year-old and paid for her to travel with him in violation of sex trafficking laws — revelations that surfaced last week — which Gaetz denied.

According to The Times, it is unclear if either Gaetz or the White House knew he was under investigation at the time he allegedly made the request. The sources said he did not tell White House aides.

It is also unclear who else he sought a pardon for, though, as the outlet notes, “In recent days, some Trump associates have speculated that Mr. Gaetz’s request for a group pardon was an attempt to camouflage his own potential criminal exposure.”

The sources also said that aides told Trump about the request, though Trump himself released a statement Wednesday claiming he had not discussed the matter directly with Gaetz.

“Congressman Matt Gaetz has never asked me for a pardon,” he said. “It must also be remembered that he has totally denied the accusations against him.”

A spokesperson for Gaetz also denied that he privately asked for a pardon in connection with the DOJ investigation.

“Entry-level political operatives have conflated a pardon call from Representative Gaetz — where he called for President Trump to pardon ‘everyone from himself, to his administration, to Joe Exotic’ — with these false and increasingly bizarre, partisan allegations against him,” the spokesperson said. “Those comments have been on the record for some time, and President Trump even retweeted the congressman, who tweeted them out himself.”

Gaetz and Allies Ramp Up Rhetoric

Meanwhile, Gaetz has continued to go on the offensive in the last week since news of the sex trafficking investigation broke — a story The Times also first published.

Also on Tuesday, Talking Points Memo reported that Gaetz is now using allegations that he sex-trafficked a minor to raise money. In a screenshot of a campaign fundraising email published by the outlet, Gaetz accused The Times of publishing the allegations in an attempt to end his career, and accusing “the Left” of trying to drag his “dating life into their political attacks.”

Source: Talking Points Memo

So far, the growing scandal does not appear to be hurting the congressman’s image among Trump allies. While many have remained silent, Trump’s statement Wednesday about the pardon — his first public comment on any of the allegations — clearly implies that he still backs the congressman who has been one of his biggest allies.

The Flordia representative has also been asked to speak at a conservative women’s conference at Trump’s Miami golf course this Friday. In a tweet Tuesday, the organization said they were “honored” to have Gaetz speak at the event, despite the ongoing investigation.

See what others are saying: (The New York Times) (Talking Points Memo) (Axios)

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