American lawmakers agree on $1.2 trillion relief plan

Deal includes aid for vaccine distribution, extra jobless benefits and stimulus cheques

As the pandemic takes a record toll in US cases and deaths, the economy has been gravely battered. PHOTO: AFP

WASHINGTON • United States lawmakers on Sunday agreed on a nearly US$900 billion (S$1.2 trillion) Covid-19 relief package for millions of Americans, in a deal that follows months of wrangling and comes as the nation battles the world's largest coronavirus outbreak.

The package includes aid for vaccine distribution and logistics, extra jobless benefits of US$300 per week and a new round of US$600 stimulus cheques - half the amount provided in cheques distributed in March under the Cares Act.

Months of partisan debate and finger-pointing, as well as last-minute negotiations, culminated in a deal that lawmakers said they hoped to formally approve by yesterday US time.

Talks had taken place amid a highly contentious campaign for the US presidency and President Donald Trump's subsequent refusal to concede defeat to Democrat Joe Biden.

"We've agreed to a package of nearly US$900 billion. It is packed with targeted policies to help struggling Americans who have already waited too long," Republican Senate Majority Leader Mitch McConnell said in a statement.

Democratic House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer confirmed that an agreement had been reached with Republicans and the White House on a deal that "delivers urgently needed funds to save the lives and livelihoods of the American people as the virus accelerates".

The deal also contains US$25 billion in housing aid to prevent evictions and nearly US$100 billion to help schools and childcare facilities reopen, a statement from Ms Pelosi and Mr Schumer said.

Congress was working under a deadline of midnight on Sunday, needing to reach consensus to avoid a government shutdown.

No. 2 House Democrat Steny Hoyer said he expected the deal to pass by yesterday US time and then head to the Senate.

That meant it required passage of a stopgap measure - which was signed by Mr Trump late on Sunday - to keep the federal government funded an extra 24 hours and avert a shutdown.

The House and Senate approved the stopgap measure earlier on Sunday.

"The House will move swiftly to pass this legislation immediately, so it can quickly be sent to the Senate and then to the President's desk for his signature," Mr Schumer and Ms Pelosi said in the statement. "With the horrifying acceleration of daily infections and deaths, there is no time to waste."

In the wake of the deal, President-elect Biden - who has promised to pass another cash injection when he takes office next month - welcomed the agreement but said more will need to be done.

"Immediately, starting in the new year, Congress will need to get to work on support for our Covid-19 plan, for support to struggling families and investments in jobs and economic recovery," he said in a statement.

Democrats and Republicans have traded blame for months over the failure to reach a deal on this second relief plan - and continued to do so even after the deal was agreed on Sunday.

As the pandemic takes a record toll in US cases and deaths, the economy has been gravely battered, with jobless numbers rising in the past two weeks.

AGENCE FRANCE-PRESSE

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A version of this article appeared in the print edition of The Straits Times on December 22, 2020, with the headline American lawmakers agree on $1.2 trillion relief plan. Subscribe