Legislative Update

Legislative Update, October 19, 2020
 
Initial jobless claims increase
For the week ending October 9, jobless claims increased slightly to 898,000. Claims have come in between 800,000 and 900,000 for more than a month, after falling below 1 million in late August for the first time since April. The pre-pandemic record for unemployment claims was 695,000 in a week during the 1982 recession. That record was shattered by an initial unemployment claims number of 7 million reached this past April. 

Senate Majority Leader McConnell indicates that the Senate will not consider large stimulus package should White House and Democratic negotiations end in a bill
Senate Majority Leader Mitch McConnell (R-Kentucky) has gone on the record with local reporters in Kentucky indicating that, should the White House and Democratic leadership reach a deal to bridge the gap between the administration’s 1.8 trillion proposal and the Democrat’s $2.2. trillion plan, he will not bring it up in the Senate for consideration. Instead, he plans to bring a more modest $500 billion package to the floor which will include an additional round of Paycheck Protection Program funding, money for hospitals and for testing, and liability protections for businesses where coronavirus lawsuits are concerned. A recent attempt on the leader’s part to bring a $500 billion plan to the floor failed to gain the 60 votes necessary for cloture in a 53-47 Republican majority Senate.

There is no indication that there are sufficient votes for cloture in this instance either. Senator McConnell’s proposal runs contrary to efforts by the White House and Democrats to reach consensus, it also contains liability protections that the Democrats will not support. Hence, it is doubtful that the leader’s action will meet with any parliamentary success. This comes amid continued calls for a substantial new round of stimulus by business leaders, economists, and the chairman of the Federal Reserve Jerome Powell. Chairman Powell has warned of dire economic consequences should new stimulus be withheld.