Congress to vote on $900B stimulus deal
Yahoo Finance's Rick Newman joins the Yahoo Finance Live panel with the latest information on a stimulus deal.
- We want to get the latest from DC because we are still waiting here for the text of the new invoice for suggestions. At the weekend, $ 900 billion was agreed. We'd like to bring Rick Newman in to take a closer look. And Rick, I know when we spoke on Friday we were a bit skeptical about whether or not we were going to do anything before the vacation, but this is certainly a big step in the right direction. Now, of course, we're just waiting for the vote to begin.
RICK NEWMAN: I would say that. We finally got it. You know, they actually started negotiating this - this is the fourth stimulus package - they started working on it in April. So it took eight months to get to that point, and we've talked about it all autumn and now into winter. So they finally got a $ 900 billion deal. It sounds like you were hoping for that $ 2.2 trillion deal that the House passed ahead of the fall elections. That would never happen. So this seems like a disappointment by comparison.
But $ 900 billion is still a huge incentive. Most adult Americans on less than $ 100,000 have $ 600 checks. There will be another round of unemployment benefits, $ 300 a week for people who are unemployed. That goes until March. And a few other things. This package does not include any state or local aid. Democrats say we'll work on it in 2021. I think that remains to be seen. But at the moment we have a pretty big stimulus package.
BRIAN CHEUNG: Rick, it seemed like the story over the weekend was really concessions, concessions, concessions between the Senate Democrats and the Republicans in particular. For a while, it looked like the bigger issues, besides state and local state aid, also concerned liability protection, but also other kinds of small concessions that people may have missed out on, like a business lunch tax break.
But then, on the democratic side, some concessions in financing education for the municipalities. At least they understand. What do you see as the side that won this type of negotiation and do you think that this bill as proposed today is fundamentally different from what we proposed earlier last week?
RICK NEWMAN: You took out those two poison pills. I mean, that's how they came up with a deal. And we kept talking about what they are. You just mentioned them. Mitch McConnell and the Senate Republicans insisted that corporate liability protection existed. And the Democrats insisted there was hundreds of billions of dollars in direct aid to states and cities that Republicans spoke out against.
So they just took those two packages out and that’s how you got a deal here, Brian. And we should point out to people that this is actually a huge law that includes not only all of this stimulus spending, but also any additional funds to keep the government going. What Congress has been doing here in the past few days is to include everything in that bill. Anything that isn't a poison pill that someone prefers is in this bill.
We have not yet seen the text of this legislation, and it is literally thousands of pages. So this is going to be one of those deals that has things here that we won't discover until next month or the following month. But it includes stimulus. That is what the markets were looking for. So this is what the market wants now.
- Two quick questions here. First, just the timing of these votes. Do we have any idea how long these normally take if we can expect a result from the House of Representatives and then of course the Senate? And then two, just in terms of when this money will go to the Americans, do we know when this will happen?
RICK NEWMAN: I mean, the Congressional press corps is fixated on the vote today, tomorrow, when is Trump going to sign it? I think for ordinary people, the checks are likely to run out next week, those stimulus checks. And this will basically be in effect by the end of the year.
So that's what we hoped for. I mean, you can go home for the vacation knowing this is a bargain if you stay up that night. We will have other problems in 2021. But that will be done by the end of the week.
- At least one topic that we can leave behind for 2020. As always, thanks Rick Newman for breaking down the latest economic negotiations for us.
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