A dysfunctional Congress is about to go careening off yet another fiscal cliff — but this will hurt a hell of a lot more than most.
Tens of millions of unemployed Americans are about to lose their economic lifeline during the worst recession in 80 years, with eviction protections set to expire at the same time.
As the final unemployment checks are set to be processed this weekend, Capitol Hill has begun to feel some urgency. Still, it’s likely too late, with the two parties far apart on coronavirus relief legislation. House Democrats passed their plan two months ago, which would have extended those benefits. But Senate Republicans just began drafting their bill this week and face real divisions within their own ranks.
Without quick action from Congress, the still-growing ranks of America’s unemployed will receive their final round of an extra $600 benefit within days, with no certainty about when more help might arrive. And that’s led to finger-pointing and frustration on Capitol Hill.
Senate GOP leaders on Wednesday presented their rank-and-file members with a draft of their latest relief proposal. That plan is expected to include a temporary flat payment of some total for unemployment insurance for two months, intended to give states time to adjust their own systems.
McConnell has said he doesn’t expect a bipartisan deal to make it through Congress for at least two weeks — a time frame that would mean at least one federal unemployment check, and possibly more, would be delayed.
People on unemployment would still be able to receive state benefits, though those average weekly benefits are roughly $300 per week.
The imminent threat to the more generous federal benefits program prompted several GOP senators on Wednesday to begin discussing how to get Congress to do what it does best — punt the problem.
Sens. Rob Portman (R-Ohio) and John Barrasso (R-Wyo.) confirmed earlier Wednesday that initial discussions were underway on a temporary extension of the jobless aid program, which would prevent a lapse in benefits and buy more time to negotiate.
“If we can’t get it all done by next week, we cannot allow there to be a cliff in the unemployment insurance,” Portman said, rattling off dire statistics like the 11 percent unemployment rate.
Oregon Sen. Ron Wyden, the top Democrat on the Senate Finance Committee, dismissed the idea of a short-term patch on Wednesday, effectively halting the idea in its tracks.
“They stalled and stalled and stalled, and now when people are going to be hurting this weekend, they’re deflecting attention,” Wyden said.
Many rank-and-file Democrats say they are willing to compromise on the extra $600 per week, saying they would be open to less money as long as there is no lapse in benefits. Others say they won’t back down on that number.
“We cannot let it lapse entirely. We’re already in an economic free fall. We will be in the worst economic free fall ever if we let this lapse,” said Rep. Susan Wild (D-Pa.), noting that many in her hard-scrabble Pennsylvania district are calling her office to ask about what will happen.
“I’m terrified about it,” she said. “The bottom could fall out because of this.”
John Bresnahan contributed to this report.