Pandemic relief bill introduced
Negotiations are underway in the U.S. Senate after a new pandemic relief package was introduced by Republican leadership Monday.
The Senate GOP's bill proposes a new round of $1,200 stimulus checks to taxpayers and $105 billion to help schools and childcare centers reopen, among other provisions, according to CNBC. In a contentious move, it reduces the weekly $600 in extra federal unemployment benefits to $200 per week. For Vermonters, that $600 benefit expired on Saturday. In October, the enhanced unemployment insurance would be set at 70 percent of a worker's wages, at a maximum of up to $500 per week.
The legislation also has more funding for national vaccine development, the Paycheck Protection Program and state aid for COVID-19 testing. However, it doesn't include a provision state leaders had pushed hard for: direct aid to state governments, at a time when revenue gaps loom very large.
When Vermont lawmakers return to the State House on Aug. 25 to complete the fiscal-year 2021 budget, they face a revenue gap of over $300 million. In a recent interview, Vermont Senate President Pro Tem Tim Ashe said federal assistance was essential.
"It’s a huge difference-maker," Ashe said. "At the beginning of the COVID crisis, I was publicly saying, 'This is why we have a federal government to step up and support states in times like this.'"
Ashe noted the state has reserves which help position it well, but the state would still face revenue gaps even with tapping those funds. Currently, those reserves stand at $230.2 million, according to the Legislative Joint Fiscal Office.
Ashe, who is currently running for lieutenant governor, said schools reopening safely, monitoring cross-state travel and economic impact on employers are among Vermonters' main concerns.
"This has been excruciating for employers," Ashe said. "There’s a lot of that wait-and-see anxiety about how safe it’s going to be from a business point of view to kind of resume some semblance of normal."
Clearly, the new round of direct payments to individuals and new funding for the Paycheck Protection Program for employers will be welcome news. But states will face some very challenging decisions if Congress is unable to agree on a way to provide emergency aid to state and local governments, which provide many important services to their communities. Hopefully, negotiations in Washington will help make that funding a reality as lawmakers look to lead their states forward.
— Gareth Henderson
