Looking like it was dead in the water, a new compromise Covid-19 bill looks close to completion with 80-year-old House Speaker Nancy Pelosi (D-Calif.) telling House Democrats to stay in session until it gets approved. Pelsoi’s mammoth $3.4 trillion Heroes Act was whittled down to $1.5 trillion in the final offer by Senate Majority Leader Mitch McConnell (R-Ky.), who originally offered only $650 billion. In the end. both parties saw the necessity of completing the legislation less than two months before the Nov. 3 presidential election. Pelosi talked tough but in the end acquiesced to GOP demands for a more moderate bill designed to extend $300 per week in extended unemployment benefits, more Payroll Protection Program [PPP] for small and medium-sized businesses and another round of $1,200 checks to individuals, up to $3,600 per family, welcomed relief to the struggling U.S. economy.
Covid-19 shutdowns around the country caused a slow motion train wreck to the U.S. economy, casting 30 million workers out of their jobs, spiking the U.S. unemployment rate from a record 3.5% to over 12%. With the unemployment rate at $8.4% and coronavirus cases beginning to taper off around the country, except for certain hot spots, GOP and Democrat elected officials believe this will likely be the last Covid-19 relief bill needed before the economy starts to recover on its own. Whether that’s the way in works out is anyone’s guess. Expectations about a vaccine available before the end of the year, if not sooner, Wall Street has reached record highs in the S&P 500 and Nasdaq, with the Dow Jones Industrial Average [DJIA] following close behind. Getting McConnell to cough up $1.5 trillion is more than Pelosi thought possible, after demanding $3.4 trillion in her first bill.
Democrats thought they were controlling the narrative heading into Nov. 3 but have seen a reversal of fortunes recently, with 74-year-old President Donald Trump closing in on the polls. Only a few weeks ago, Biden looked like he had an insurmountable lead, now beginning to evaporate, based largely on a lackluster campaigning by Biden and his running mate, 55-year-old Sen. Kamala Harrsi (D-Calif.). Cutting the deal with McConnell gives Democrat something to crow about, especially if some of the $1.5 trillion is earmarked for cash-strapped cities, counties and states around the country. “We have to stay here until we have a bill,” Pelosi told the House. Agreeing to the $1.5 trillion package, the 50-member Problem Solving Caucus signed onto the bill. Big city mayors, county officials and state governors will be happy to get cash infusions into hemorrhaging budgets.
Pelosi can claim victory for her constituents, squeezing much more cash out of McConnell than expected. She gave 57-tear-old Treasury Secretary Steve Mnuchin and 61-year-old White House Chief of State Mark Meadows fits leading up to the $1.5 trillion compromise. Both sides got something they could take to their constituents before the election. Compromise was in both parties’ interests, especially if it helps the unemployed and struggling families make ends meet. Even with the prospects of a vaccine in the next few months, new polls show that only about 30% of Americans are willing to take the vaccine, though that number could go up quickly especially if it’s shown safe-and-effective. With multiple drug companies coming up with different vaccines, U.S. consumers will have more choice, most likely boosting its use. It doesn’t help when 64-year-old mega-billionaire Bill Gates raises doubts about vaccine safety.
As the presidential race tightens, it’s clear that the Democrat message of invincibility for 77-year-old former Vice President Joe Biden has started to crack. News stories about Biden’s inevitable Nov. 3 victory prompted Sen. Bernie Sanders (I-Vt.), who’s been advising the Biden campaign, to say Biden’s win was “not a slam dunk.” For months Democrat touted Biden’s double-digit lead on Trump, now rapidly disappearing as the vote draws near. No matter how hard the press downplays United Arab Emirates [UAE] and Bahrain’s peace deals with Israel, it’s earned Trump two nominations for Nobel Peace Prizes. Add to that a peace deal brokered between archenemies Serbia and Kosovo, it’s difficult for the press to keep it out of the news. Trump’s foreign policy accomplishments no doubt prompted Pelosi to compromise, to steal back some to the limelight from Trump, entering her decision to compromise with the White House, something that works for everyone.
Congress works best when both parties have aligned incentives to work together, something that brought Pelosi and McConnell back to the table. While Pelosi got less that half of the $3.4 trillion Heroes Act, she managed to get McConnell to offer more than double his original offer. Getting a $1.5 trillion deal was a success for both parties looking to help their cause heading into November’s election. “This is how Congress is supposed to work,” said Rep. Dusty Johnson (D-S.D.), a member of the Problem Solver’s moderate group. House Majority White Steny Hoyer (D-Md.) said the Problem Solvers’ caucus helped get the deal done, when more progressive House members would have held out on principle and never cut a deal with the GOP. “We believe getting to a compromise is absolutely essential,” Hoyer told the press, welcoming the relief especially to cities, counties and states.
