Republicans ready the CARES 2 Act. Republican leaders in the Senate, White House Chief of Staff Mark Meadows, and U.S. Treasury Secretary Steven Mnuchin spent the weekend putting the "finishing touches" on the next round of coronavirus-related spending, Meadows told reporters on Sunday night. Senate Majority Leader Mitch McConnell is slated to introduce it this afternoon.
At a cost of $1 trillion, the new GOP spending package is expected to include checks for all Americans, the continued provision of federal unemployment benefits (albeit at a reduced rate of around $200 per week, down from the current $600), and more Paycheck Protection Program loans, as well as initiatives to reopen schools and to test and trace for COVID-19. It will also include business tax credits.
About $105 billion in spending is slated for schools and $16 billion for test-and-trace efforts, reports ABC News.
The latter program was one of several that divided Republicans:
President Donald Trump had insisted on a payroll tax cut, which caused some delay, but after the pitch met with opposition from many Republicans and Democrats alike, the proposal was dropped. Mnuchin acknowledged over the weekend that the tax incentive did not provide immediate relief, unlike the planned second round of direct payments to Americans with modest incomes. Likewise, the administration caved on an effort to zero out any new funding for testing, tracing, and the major federal health agencies involved in fighting the pandemic.
The bill, being called CARES 2, is an extension of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act that Congress passed back in March. CARES part one is set to expire on July 31.
