- Senate Majority Leader Mitch McConnell says he believes further economic stimulus will be necessary but that it won’t be approved until early next year
- House Majority Leader Nancy Pelosi and President Donald Trump voice preferences for stimulus in lame duck period
- Election results may influence what actions Congress takes before the end of the year
House Speaker Nancy Pelosi and President Donald Trump may not agree on much, but they share the expectation that an economic stimulus bill can be approved before the end of the year. Senate Majority Leader Mitch McConnell, by contrast, doesn’t believe this relief will be passed until early next year.
McConnell recently said that while he thinks further stimulus will be necessary, any package will be more modest than Democratic proposals. House Democrats passed the $2.2 trillion HEROES Act to provide further stimulus, but McConnell rejected it as “outlandish.” He said he thinks any new relief should prioritize aid to small businesses, hospitals, and schools.
Despite broad support for several measures, disagreements over issues like liability protections for businesses and assistance to state and local governments have led to a months-long impasse between Democrats and Republicans to address the economic impact of the COVID-19 pandemic. Pelosi and Treasury Secretary Steven Mnuchin have been trying to craft a compromise bill, though their communications recently grew more terse as Pelosi accused the White House of failing to respond to an inquiry on several points of contention and Mnuchin accused Pelosi of pulling a “political stunt.”
The U.S. GDP posted a historic 33.1 percent boost for the third quarter, though it remained 3.5 percent below pre-pandemic levels. A third wave of increasing COVID-19 cases has also raised concerns of further lockdowns and business restrictions.
The results of Tuesday’s election could influence what actions Congress takes. Democrats are widely expected to retain control of the House of Representatives, and would likely work to pass a larger stimulus package early next year if they take the Senate and White House as well. Even with a Democratic sweep, Congress could decide to take short-term relief measures rather than delaying aid for three more months.
McConnell and other Republican senators have generally aligned behind smaller relief proposals, most recently trying to pass a standalone PPP funding bill and a “skinny” economic stimulus package, neither of which succeeded before the Senate adjourned before Election Day. Trump has favored a larger stimulus package and said he expects one will pass “immediately” after the election.
