Coronavirus Stimulus Efforts Remain Unresolved

Despite last week’s House passage of a pared-down version of the HEROES Act, negotiations remained stalled between the White House and Congressional Democrats. On Tuesday evening, President Trump reversed course after initially signaling the White House would end negotiations until after the election. Following a plunge in the stock market after his first announcement, President Trump tweeted he would immediately approve an additional round of $1,200 stimulus checks for Americans if presented with a standalone bill. Additionally, he pushed Congress to inject $135 billion into the Paycheck Protection Program (PPP) to assist hard hit small business and $25 billion for Airline Payroll Support. Supplemental aid for the PPP and airlines were initiatives included in stimulus negotiations between the White House and Congressional Democrats that fell short earlier this week. On Wednesday, stocks rebounded following the President’s insistence to revive emergency relief. The prognosis for additional state and local fiscal aid remains uncertain. GFOA will monitor the situation as talks continue and report any developments.