The COVID-19 Omicron variant is causing more disruption to America’s economy. This could potentially prompt the revisiting of early relief strategies from Washington lawmakers.
Capitol Hill conversations have turned the focus to possible aid for those hit the hardest by the pandemic, through performance venues, small businesses, gyms, and restaurants.
“The conversation has not yet been extended to assistance to individuals. But it has gone from something that is not going to happen to something we have to watch.” – Raymond James Washington Policy Analyst Ed Mills
This week, the United States reached the highest single-day record of cases related to COVID-19, with over 1 million new infections being reported. However, several measures of federal relief to assist families and individuals–namely the expanded unemployment benefits with 3 waves of stimulus checks are no longer being implemented.
It has not been discovered whether or not lawmakers will revisit the same strategies due to the changes to both the pandemic and the U.S. economy. Although the early days were marked by record layoffs and high rates of unemployment, it has now begun to shift in the favor of workers.
“With millions of job openings that are going unfilled, Congress is going to be hesitant to provide something that could be seen as being a disincentive to filling those positions.” – Raymond James Washington Policy Analyst Ed Mills
This does not mean the government will provide no help. Localities and state governments are still in possession of the $90 billion as part of the Biden Administration’s American Rescue Plan Act passed just last year. Furthermore, they are slated to receive another $150 billion in the coming season. Despite the fact that schools received $120 billion, it is unlikely that the majority of the budget has been spent.
“We’re not going to fix this pandemic by that ARPA money sitting in a bank account. We’re going to fix the pandemic by that ARPA money getting spent, and there’s a ton of good ways to spend it.” – Economic Policy Institute Senior State Policy Coordinator Dave Kamper
One manner in which state officials can hold is through the provision of paid family and sick leave to workers now that federal measures have seen expiration. While some locations such as New York already do this, many more can step in to help alleviate the pandemic and its burdens, according to Kamper. He went on to continue that paid leave to inspire workers unable to take time off to receive their vaccinations.
States could extend aid by creating one-time resident payments, either as paid time off to receive a vaccine or as an incentive. This could also improve insurance for unemployment, yet larger-scale efforts would still have to be taken care of by the federal.
More help could be in the works through the expanded child tax credit’s proposed extension. Families of eligibility received monthly payments maximizing at $300 per child last year. While the latest payments were sent out in December, they will not continue unless the Build Back Better Act is passed by Congress.
Democrats hope that the bill is passed through what is referred to as reconciliation, a situation in which votes are secured through a simple majority. Unfortunately, these efforts have been halted. It has been requested by several key individuals including Senator Joe Manchin of West Virginia that the extended credit’s requirements for targeting be made significantly stricter.
“The conversation about individuals really does start with what to do with the child tax credit.” – Raymond James Washington Policy Analyst Ed Mills