Happy Wednesday and welcome back to On The Money, where we’re eagerly anticipating the Janet Yellen musical. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
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THE BIG DEAL—Funding bill hits snag as shutdown deadline looms: A top Senate Republican on Wednesday said that Congress will likely need a stopgap bill amid a myriad of last-minute snags that are threatening quick passage of a mammoth spending bill to fund the government.
Congress has until Dec. 11 to pass an omnibus, which would wrap all 12 fiscal 2021 bills into one, but Senate Appropriations Committee Chairman Richard Shelby (R-Ala.) says he doesn’t think negotiators will make their deadline.
“Will we do it by the ninth? I’d like so but probably not. There’s some challenges that have got to be dealt with,” Shelby said, regarding the mammoth government funding deal. “That’s ticking away fast now.”
- Shelby said Congress will need to make a decision on whether or not they need a continuing resolution (CR) by Dec. 9, so that they can pass it by Dec. 11.
- If negotiators are close they could pass a CR for a matter of days or a week to give themselves time to finalize a deal.
- If they aren’t close, they would likely use a CR to fund the government until early next year and kick the can on the larger bill.
The Hill’s Jordain Carney tells us where things stand here.
An abundance of obstacles: The rising chances of a CR come as omnibus negotiations have gotten bogged down over a fight over Veterans Affairs healthcare funding, the border wall and money for Immigration and Customs Enforcement (ICE) detention beds.
LEADING THE DAY
Pelosi, Schumer endorse $908 billion plan as basis for stimulus talks: House Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Charles Schumer (D-N.Y.) on Wednesday threw their support behind using a bipartisan, compromise plan as the basis for COVID-19 relief talks.
“In the spirit of compromise we believe the bipartisan framework introduced by Senators yesterday should be used as the basis for immediate bipartisan, bicameral negotiations,” the Democratic leaders said in a joint statement.
The Hill’s Niv Elis gives us the latest here.
A major shift:
- The move to put a $908 billion compromise bill at the center of talks is a significant retreat from the $2.2 trillion measure that Democrats have been pushing in recent months, and will add pressure on McConnell to respond in kind.
- Prior to November’s election, Pelosi turned down a $1.8 trillion offer from Treasury Secretary Steven Mnuchin, who was negotiating on behalf of the Trump administration, citing major differences on policy details
- Senate Majority Leader Mitch McConnell (R-Ky.), however has insisted on a “targeted,” $500 billion approach.
High stakes: The stakes for passing a relief bill during the lame-duck session are monumental.
- Two crucial unemployment programs are set to expire on Dec. 31, which would leave an estimated 12 million people with no income during the worst phase of the pandemic so far.
- Other key programs, such as $600 in supplemental unemployment insurance and a forgivable loan program for small businesses called the Paycheck Protection Program (PPP) expired in the summer.
- S&P Global is forecasting that the economy will already shrink in the fourth quarter of this year, and may fall into a full double-dip recession if Congress fails to pass a relief bill, kneecapping the economic recovery.
Poll: Most Americans support raising taxes on those making at least $400,000: Most Americans, including nearly half of Republicans, support raising taxes on people making at least $400,000 while keeping the current tax rates for everyone else, according to a new poll from The New York Times and SurveyMonkey.
- About two-thirds of respondents said they supported higher taxes on those making $400,000 or more and maintaining tax rates for others.
- Eighty-eight percent of Democrats, 70 percent of independents and 45 percent of Republicans said they backed this idea.
The survey comes in the wake of the 2020 presidential election, during which President-elect Joe Biden pledged to not raise taxes on anyone making under $400,000. The Hill’s Naomi Jagoda breaks it down here.
GOOD TO KNOW
- Businesses at properties owned by the Trump Organization and President Trump’s son-in-law Jared Kushner’s family reportedly received more than two dozen Paycheck Protection Program (PPP) loans worth more than $3.65 million.
- Mortgage applications for home purchases surged 9 percent in the final week of November, according to an analysis from the Mortgage Bankers Association (MBA).
- Private-sector job growth in November slowed to its weakest pace since July, with employers adding 307,000 new jobs, according to estimates from ADP.
- President-elect Joe Biden says he won’t immediately remove the tariffs that President Trump imposed on Chinese goods.
ODDS AND ENDS
- Amazon’s refusal to sell e-books published in-house to libraries is sparking backlash as demand for digital content spikes during the coronavirus pandemic.
- Norwegian Cruise Lines on Wednesday announced that it is extending its suspension of all cruises until at least the beginning of March 2021 amid the ongoing coronavirus pandemic.