The United States Congress on Monday will likely come to an agreement on a mammoth $2 trillion coronavirus relief package -- the third stimulus package over the last three weeks -- that includes emergency paid leave for employees and free coronavirus testing.
The package is equal to 10% of U.S. economic output, estimates White House Economic Advisor Larry Kudlow. He said small businesses might receive a payroll-tax holiday, but it remains unclear if this critical issue has been agreed upon or is just another item on the agenda.
"We're just trying to cover the right bases," said Kudlow on Saturday.
On the same day, president Donald Trump said the $2 trillion relief plan will likely go before the Senate and House of Representatives on Monday. He feels the federal government is "very close" to agreeing on a common stimulus package. Trump also said his team is working on a "very special" package.
On March 13, House Majority Leader Nancy Pelosi (D-CA) said the House passed an economic stimulus bill aimed at boosting coronavirus testing, which remains scandalously deficient due to Trump's inaction, and protecting Americans from the economic impact of the growing pandemic
Pelosi said the bipartisan package will provide free coronavirus testing for everyone who needs a test -- including the uninsured. The package will also provide secure paid leave; allow two weeks of paid sick leave, and family and medical leave for those affected by the virus.
"The three most important parts of this bill are testing, testing, testing," she said.
The massive size of the $2 trillion package might not now be enough given millions of Americans have lost their jobs over the past few weeks, with millions more expected to do so in the coming months.
On Thursday, the federal government releases initial jobless reports showing claims surged 70,000 to 281,000, the highest level in 2-1/2 years. Goldman Sachs estimated initial claims for the week ending March 21 could skyrocket to a seasonally adjusted 2.25 million -- the highest level in U.S. history.
Bank of America on Saturday issued an equally alarming and similar report. It said unemployment claims this week might hit the even higher total of three million. It noted some workers being fired without severance, paid leave or health insurance. Hospitals are also facing equipment and staff shortages amid the crisis.
On Thursday, Senate Majority Leader Mitch McConnell (R-KY) promised Senate approval of the economic stimulus bill at "warp" speed, which in reality means an approval by late next week at the earliest. Congress' approval by of the consumer bailout package, however, will do nothing to resolve the root cause of the current economic crisis -- COVID-19 and its untrammeled spread across the U.S.
