Legislative Update

Legislative Update, December 7, 2020
 
Initial Jobless Claims Fall:  After rising for two consecutive weeks, initial unemployment insurance claims fell by 75,000 to a seasonally adjusted 712,000 for the week ending November 28. The fact that claims continue to remain higher than the pre-pandemic record of 695,000set in 1982 is an indication that the economy has some distance to go in recovery. 22 million jobs were lost at the outset of the pandemic. Roughly 12.5 million have been added since April. The current national unemployment rate is 6.9%.


Compromise Stimulus Package Gaining Support: A bipartisan $908 billion stimulus package is gaining support among members of Congress. The plan, developed by a bipartisan group of U.S. senators, which included Delaware’s Senator Chris Coons, and backed by the bipartisan House Problem Solvers Caucus, would act as a stopgap measure through March, when the Biden Administration is expected to pursue a larger package. Among the key elements of the plan are the following: 

• $160 billion in aid to state and local governments;
• A short-term suspension of liability related to Covid-19 at the state and federal levels:

• $288 billion in small business relief, to include another round of PPP funding;

• $16 billion for vaccine distribution;

• $82 billion in assistance to schools;

• $25 billion for rental assistance;

• $180 billion for additional UI, to include an additional $300 per week through March on top of existing benefits and an extension of federal unemployment benefit programs for the same period;

• $26 billion in agricultural and nutritional/food assistance;

• $17 billion in relief for airlines; 

• $45 billion for transit agencies, including airlines, airports, buses and Amtrak;
• $10 billion for the U.S. Postal Service; and 
• $10 billion for child care.