stimulus update october 12 2020
October 12, 2020

More Dems Call For Pelosi to Take the Deal

COVID-19

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More and More Dems Call For Pelosi to Take the Deal

This is my stimulus update for Monday, October 12.

I know yesterday I said I wouldn’t talk about Larry Kudlow because I kind of think he’s just there to go on camera, talk about how we’re in a beautiful V-shaped recovery, and just juice the markets in general, but I just can’t resist today, Kudlow basically said that Trump may go beyond what the Democrats want on some stimulus items and that if an agreement can be reached with the Democrats, Senate Republicans will go along with it.

Don’t want to read? Watch the video here!

I’d agree that some Senate Republicans will go along with it, probably almost just those who are up for reelection this year and who are in tight races, but generally speaking?

It’s only up from here, it’s only up from $1.8 trillion, and it certainly sounds like Republican senators gave Mnuchin and Meadows an earful last week over $1.8 trillion, so Kudlow’s remark is questionable, just like anything out of his mouth, frankly. Sometimes I just cannot take that man seriously.

Meanwhile, a motley crew of various Democratic and otherwise left-leaning figures have been urging Nancy Pelosi to take the White House’s latest 1.8-trillion-dollar offer. Pelosi reiterated her rejection yesterday in a Dear Colleague letter saying that elements of the latest White House proposal is inadequate and that we remain at an impasse.

But there are some prominent Democrats urging Pelosi to take the deal. 2020 Democratic presidential hopeful Andrew Yang was on CNN and he said, look, Pelosi and Congress, I know you don’t love Trump, but the American people need relief and he called the Republicans’ latest proposal a good deal for millions of Americans.

Democratic Congressman Ro Khanna, he along with Tim Ryan, was the guy behind the $2000 a month Emergency Money for the People Act that YouTubers were clickbaiting about for months, even this Congressman tweeted, “People in need can’t wait until February. 1.8 trillion is significant and more than twice [the] Obama stimulus. It will allow Biden to start with infrastructure … Make a deal and put the ball in McConnell’s court.”

Nevertheless, the House of Representatives’ floor schedule for this week reads as follows: “Members are advised that due to the Trump Administration’s failure to reach an agreement on coronavirus relief, no votes are expected in the House this week.”

So we’re in an interesting position here. We have several prominent Democrats urging Pelosi to accept the White House’s offer, let’s take this thing to vote, while we have many Republicans in the Senate saying they’re not interested in it.

But what are Republicans up to now? Well, yesterday White House Chief of Staff Mark Meadows and Treasury Secretary Steven Mnuchin sent a letter to Congress praising the passing of the CARES Act and other legislation in response to the COVID-19 pandemic and stating that the White House is trying to work with Democrats on more legislation.

And they made a request, they basically just go on and on and don’t really say anything new in four paragraphs, but then in the last paragraph they make a request, here it is: “Now is the time for us to come together and immediately vote on a bill to allow us to spend the unused Paycheck Protection Program funds while we continue to work toward a comprehensive package. The all-or-nothing approach is an unacceptable response to the American people.”

So this is interesting, instead of working on perhaps another proposal to appease these Republican lawmakers or to appease Pelosi, both of whom rejected the 1.8-trillion-dollar proposal, Meadows and Mnuchin are going ultra-targeted here and simply seeking Congress to pass legislation allowing the $130 billion of unspent PPP money to be spent right now for a second round of PPP for businesses that experienced a decline in revenue.

I think that would be a good move to keep some businesses afloat right now, but this is kind of a bad move for stimulus negotiations. This is basically saying, “We are trying, but we’re not getting anywhere with you guys, not really getting anywhere with Pelosi, so maybe for the time being, let’s just do this just so we can do something.” That’s my read on this situation here.

That said, even if the Republican-held Senate passes legislation like this, it would still have to be approved by the House, and Nancy Pelosi would view this as a standalone bill, which she is opposed to.

In terms of the Senate, Judge Amy Coney Barrett’s confirmation hearings began earlier this morning, that is what Senate Republicans are focused on right now, and I’m not sure what would change their mind on stimulus.

Trump did talk to Maria Bartiromo on Fox News yesterday, and he didn’t really have much of anything new to say about stimulus, apparently he’s back on script now, blaming Pelosi for lack of stimulus, blaming China for everything, says we’re ready to go but can’t get Nancy Pelosi to sign the document.

Trump didn’t really clarify what “the document” he was referring to his, but I imagine this is related to when he was talking about reappropriating CARES Act money for stimulus checks a few weeks back, he mentioned something to the effect of, “Yeah, Congress just needs to approve a one-sentence thing,” maybe that’s what he’s referring to, I’m not sure, I kind of wished Maria would have pressed him on that point.

Logan Allec, CPA

Logan is a practicing CPA, Certified Student Loan Professional, and founder of Money Done Right, which he launched in July 2017. After spending nearly a decade in the corporate world helping big businesses save money, he launched his blog with the goal of helping everyday Americans earn, save, and invest more money. Learn more about Logan.

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