US $1 Trillion Stimulus Package Prepared... Trump Anxious as Negotiations Near Agreement (Summary)

Conflict Expected Between Democrats Over $600 Weekly Unemployment Benefits
No State Support Budget for COVID-19 Damage
With 100 Days Until the Election, Economic Recovery Is Urgent but Agreement Is Unlikely

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Baek Jong-min] The Donald Trump administration and the ruling Republican Party in the United States have virtually finalized an additional $1 trillion (1,200 trillion won) economic stimulus package, including direct cash payments to individuals, to respond to the novel coronavirus disease (COVID-19).

However, the Democratic Party is pushing to increase the stimulus support to $3 trillion, making it difficult to reach an agreement in negotiations.

On the 26th (local time), with exactly 100 days left until the presidential election, President Trump's approval rating still lagged behind Democratic presidential candidate Joe Biden by more than 7 percentage points.

According to U.S. media including CNN on the same day, the Trump administration and the Republican Party plan to prepare the fifth stimulus bill since the COVID-19 outbreak and announce it on the 27th. The government and ruling party will begin full-scale negotiations with the opposition Democratic Party.

According to CNN, the bill is reported to include $105 billion in support for school normalization, additional COVID-19 testing support, new loans and tax cuts for businesses.

The Republican Party also prepared a plan to provide an additional $1,200 in cash per adult based on income level. This was reflected again considering that the previous $1,200 cash payment policy helped boost consumption.

However, the key issue in negotiations with the Democratic Party is expected to be the unemployment support measure that guarantees 70% of pre-unemployment wages. The additional $600 weekly unemployment benefit, which has been in effect for the past three months, is set to expire on the 31st, and the White House and Republicans believe it should no longer be paid. On the other hand, the Democrats insist that the current payment level should be maintained.

Mark Meadows, White House Chief of Staff, appeared on ABC News on the same day and said, "The existing expanded unemployment benefit program that provides an additional $600 per week actually made people stay home," adding that the administration and Republicans will never do such a thing again. The Wall Street Journal (WSJ) evaluated that the extension of unemployment benefits is the biggest point of conflict.

Support for state governments is also a controversial issue. The Republican plan did not include any budget for state government support, which is facing a financial crisis due to the COVID-19 situation. The Democrats argue that $1 trillion should be allocated for local government support. Democratic governors from states such as New York and New Jersey, which have been reluctant to resume economic activities, have repeatedly emphasized the need for federal financial support, but the White House and Republicans are ignoring this, making conflict between the two parties inevitable.

Larry Kudlow, Chairman of the White House National Economic Council (NEC), appeared on a broadcast on the same day and said, "The U.S. economy is heading north, not south," expressing confidence in economic recovery and reiterating the claim that the U.S. economy will achieve a 'V-shaped' recovery in the third quarter. This was a statement that large-scale support as demanded by the Democrats is not necessary.

The White House and Treasury Department pressured Congress to reach an agreement quickly before negotiations began. Treasury Secretary Steven Mnuchin appeared on Fox News and said, "We are ready to act quickly," adding, "We want to make sure it passes quickly to address unemployment and all other issues."

In response, House Speaker Nancy Pelosi, a Democrat, appeared on CBS and said, "President Trump is Mr. Make Matters Worse," clearly stating that she cannot agree with the Republican plan. She emphasized, "The reason unemployment benefits must be maintained is very obvious."

President Trump's situation, who is in a hurry, is worsening. According to a CNN poll released on the same day, Biden leads President Trump in key battleground states such as Florida, Arizona, and Michigan. These three states were all won by President Trump in the 2016 election. According to the political website 'RealClearPolitics,' President Trump's average approval rating is 40.9%, trailing former Vice President Biden (49.6%) by 8.7 percentage points.

The conflicts triggered by President Trump are expanding further. As federal agents were deployed to crack down harshly on racial discrimination protests, violent incidents occurred again over the weekend in Seattle, Portland, Austin, Richmond, Oakland, and other cities. The Washington Post evaluated that the clashes over the deployment of federal agents in the U.S. Northwest region have injected new energy into the protests.

This content was produced with the assistance of AI translation services.