The Next Coronavirus Bill will not Include Enhanced Unemployment Benefits says, Mitch McConnell

Senate Majority Leader Mitch McConnell on Wednesday said the next coronavirus bill will not include enhanced unemployment insurance as the pandemic continues to ravage the US economy.

In a call with GOP lawmakers, the Kentucky Republican Senator discussed the priorities for the next phase of the pandemic response. He said that by the end of July the additional $600 weekly payments offered by the federal government as unemployment benefit will expire. This is in contrast to the Democrats’ voted $3 trillion Heroes Act which states that a six months unemployment benefits extension will be granted to the unemployed.

The Democrats intend that the unemployment benefit lasts till January 2021, seeing that almost 38 million Americans have filed jobless claims since the start of the outbreak in March. On the contrary, the Republicans see this increased number as a more reason to cut off the unemployment benefits extension. Already, some states are struggling to keep up with unemployment insurance payments as more people file jobless claims weekly. Some states may soon depend on the federal government for assistance.

According to House Speaker Nancy Pelosi the new legislation has to be all-inclusive as many Americans are “suffering” and all the House Democrats seek is to “lessen their pain.” However, Rep. Tom Cole (R-Okla.) believes that the legislation is simply outrageous and merely “a Democratic agenda parading as a response to the coronavirus pandemic.”

In reaction to the new bill, McConnell questioned the urgency to inject more federal spending into the economy. He further said that he would first like to see the performance of the other three stimulus packages worth almost $3 trillion. In his defense and the concerns of the Republicans, he said there was a need to first observe how effective the previous programs were in combating the crisis.

Regarding cutting the unemployment benefits extension, some Republicans have argued that some individuals receive less than the unemployment benefit at their regular jobs, as a result of that the enhanced unemployment benefit insurance could discourage many people from work. While this is a good argument, Demetra Nightingale, an institute fellow at the Urban Institute is of the opinion that cutting off the unemployment benefits extension could also render millions of Americans helpless as some employers may still be unable to hire workers by August.

“The added benefit is an important source of income for many workers and families in this difficult time, with a few job options. It may be too soon to end the $600 enhancement,” Nightingale said in an email.

The clash of interests and priorities between Republicans and Democrats may keep the fourth stimulus package in drag as Republicans question Democrats over the $3 trillion Heroes Act, and are rooting for the reopening of businesses more than Democrats have.