America's elected representatives have failed America.
Why it matters: The bipartisan inability to deliver economic stimulus could impede economic growth for months to come. It will create widespread damage across America — from small businesses to large industries to schools and day cares — and leave many Americans without jobs or homes.
<p><strong>State of play:</strong> The initial economic stimulus, called the CARES Act, was only designed <a href="https://www.axios.com/coronavirus-america-blew-it-b3d84ea3-78b3-4fe0-8dce-1c4ed0ec0a4c.html" target="_blank">to last through the summer</a>. Since then, congressional leaders have become too entrenched in their partisan positions to reach a deal on anything else.</p><ul class="ee-ul"><li>The House passed a large package <a href="https://www.axios.com/coronavirus-package-relief-f0bee5ba-73da-4deb-8c07-3977e62a1724.html" target="_blank">in May</a> that went nowhere. Senate Republicans tried, but <a href="https://www.axios.com/senate-democrats-block-republicans-skinny-stimulus-bill-207a9ff2-1b09-4efa-a9ef-66bbe937d560.html" target="_blank">failed</a>, to pass a skinnier bill earlier this month. A <a href="https://www.axios.com/problem-solvers-caucus-coronavirus-bill-ab2a287e-33d2-4d69-97ef-f0d00611aa52.html" target="_blank">bipartisan effort</a> by the Problem Solver Caucus seems unlikely to reach the floor.</li></ul><p>Before Supreme Court Justice Ruth Bader Ginsburg's death Friday, most lawmakers and Hill staff believed there was little chance of passing a new stimulus package before the election. Now, they privately admit there’s virtually no shot. </p><ul class="ee-ul"><li>We turned to Axios' subject matter experts to examine the damage created by Washington's inaction.</li></ul><h2>The unemployed</h2><p>Under the CARES Act, unemployed Americans received an extra $600 per week in enhanced benefits. But those benefits expired at the end of July. </p><ul class="ee-ul"><li>Democrats assert the extra money is necessary to keep working Americans afloat, while Republicans largely think it's a disincentive to work.</li></ul><p>Last month, President Trump signed an executive order supplementing unemployment benefits at $400 per week. But it stated that the federal government would only pay $300, while cash-strapped states must pitch in the rest. Last week, <a href="https://www.axios.com/desantis-trump-unemployment-florida-b31761d9-6c35-4b39-bd3b-c0c8b3c458a7.html" target="_blank">Florida announced</a> it was dropping the program due to the cost.</p><p><strong>Why it matters:</strong> 30 million Americans are still receiving unemployment benefits.</p><h2>Small businesses</h2><p>Both Democrats and Republicans agree there's urgent need for a second round of stimulus loans for small businesses, which employ nearly half of all Americans. Yet there's been no movement to reauthorize the Paycheck Protection Program as a standalone, nor to pass a <a href="https://www.axios.com/saving-americas-independent-restaurants-d3fb7fa3-59f1-4077-8e9b-220715be9fe9.html" target="_blank">separate proposal</a> aimed at restaurants and bars.</p><ul class="ee-ul"><li>The National Federation of Independent Businesses reports that its "uncertainty index" in August hit its second-highest reading since 2017. </li><li>The original PPP lent over $500 billion to nearly 4.9 million small businesses, including independent contractors. </li><li>At this point, however, almost all of those PPP loans have been exhausted, even though many businesses remain closed.</li></ul><p><strong>What to watch: </strong>A renewed PPP, were it to happen, likely would be more targeted at even smaller businesses than was the initial effort.</p><ul class="ee-ul"><li>The overall restaurant industry is on track to lose $240 billion in sales this year, with nearly one in six having already closed permanently or long-term, per the National Restaurant Association. </li><li>Nearly 3 million restaurant workers remain out of work, long after expanded unemployment benefits expired.</li><li>A group representing America's 500,000 independent restaurants <a href="https://media-cdn.getbento.com/accounts/cf190ba55959ba5052ae23ba6d98e6de/media/EmH1JsVMRNylmKAeF2FJ_Report.pdf" target="_blank">estimates</a> that more than 80% of them could go out of business without some sort of direct aid from Congress.</li></ul><h2>Elections</h2><p>State election officials of both parties from across the country have begged Congress for stimulus funds to help ensure the November elections run efficiently and fairly, <em>Stef Kight reports. </em></p><ul class="ee-ul"><li>Some states have extra costs related to the pandemic, and many will need to manage unprecedented numbers of mail-in votes.</li><li>In the face of Congress' failure, charities have stepped in to donate hundreds of millions of dollars to state and local election officials, <a href="https://apnews.com/92257bbc1fefd9ed0e18861e5b5913f6" target="_blank">according to the AP.</a></li></ul><h2>Airlines</h2><p>The clock is ticking for tens of thousands of anxious airline employees, who face mass reductions when the government's current payroll support program expires on Sept. 30, <em>Joann Mueller reports.</em></p><ul class="ee-ul"><li>Airline CEOs met last Thursday with White House Chief of Staff Mark Meadows, who said President Trump would support $25 billion in new stimulus. </li><li>There isn't large congressional appetite for a standalone airline bailout. The last standalone stimulus bill, $25 billion for the U.S. Postal Service, passed the House but wasn't even brought up for a vote in the Senate.</li></ul><h2>Schools</h2><p>Schools and day cares are bleeding out without much-needed federal dollars. A generation of kids could get left behind, particularly those in economically disadvantaged neighborhoods, and many parents will struggle to work.</p><ul class="ee-ul"><li>Between hiring more staff to allow for socially distant classes, getting PPE for teachers, and adding tech tools for remote learning, schools face around $100 billion in additional costs this year, the American Federation of Teachers <a href="https://www.aft.org/sites/default/files/wysiwyg/reopen-schools-financial-implications.pdf" target="_blank">estimates</a>. That’s close to $2,000 per public school students, <em>Erica Pandey writes.</em></li><li><a href="https://www.axios.com/coronavirus-child-care-business-crisis-035a9fe2-0f8a-4563-bc34-9016f65c6c66.html" target="_blank">Economists say</a> the child care industry needs around $10 billion a month to survive. Without the aid, some 50% of centers could shutter.</li></ul><h2>Health care </h2><p>The hospital industry is pushing Congress for more relief, even though some health systems are <a href="https://www.axios.com/health-care-industry-coronavirus-pandemic-second-quarter-78f19a89-e7d8-4c91-927b-e6b49f7ee60a.html?from=samsung_news_daily_card" target="_blank">reporting huge profits</a>, <em>Caitlin Owens reports.</em></p><ul class="ee-ul"><li>Safety net hospitals, which provide services regardless of a patient's ability to pay, are struggling to stay afloat just when they’re needed most. </li><li>Consumer spending impacts health service providers, including hospitals. It is likely that more Americans would visit doctors if they had another $1,200 check in their pockets.</li><li>Others will forgo health care, or following public health recommendations, in favor of paying rent or grocery bills. </li></ul></div>
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