House Rep. Maxine Waters (D-CA), is proposing a bill allocating $2,000 a month per person with an additional $1,000 a month for each child as part of a stimulus relief package for those affected by the coronavirus.
As the chairwoman of the House Committee on Financial Services, Waters shared a memorandum with considerably the most generous proposal to date — continuous and direct cash payments of $2,000 or more to each American adult during each month of the coronavirus pandemic.
Waters' proposal not only provides money, but it also suggests suspending credit card payments for consumers and small businesses without increasing interest rates on loans, including mortgages, auto loans, student loans and credit cards. The congresswoman suggested spending a combination of $20 billion on the State Small Business Credit Initiative and HUD's Community Development Block Grant (CDBG) program.
The credit initiative was created under the Small Business Jobs Act of 2010 to "support the financing of small businesses," according to the U.S. Department of the Treasury. The CDBG program has offered financial support for communities since 1974, making it one of the longest-running programs at HUD.
The proposal also takes into consideration those who are experiencing homelessness. It suggests that $5 billion go to emergency homeless assistance, with state and local agencies paying for individuals to stay indoors at hotels and motels during the pandemic.
The proposal designates $100 billion for building new public and affordable housing. Waters already accomplished this goal, but she's trying to match the Housing Is Infrastructure Act that she and fellow committee members passed on February 28. The act reinvests $100 billion into America's affordable housing infrastructure, authorizing federal spending on public housing, supportive housing for seniors and people with disabilities and rural and Native American housing.
Waters, however, doesn't want to be generous with Wall Street. The proposal "would require large corporate beneficiaries of government assistance to comply with restrictions on executive compensation, golden parachutes, stock buybacks, and dividend payments."
It seems that Republicans and Democrats both agree that a stimulus package is in order, but the real debate will be about how relief measures will be implemented.
During a press conference, Sen. Bernie Sanders (D-VT) similarly proposed a monthly payment of $2,000 to every household in the duration of the coronavirus pandemic, CNBC reported.
On Thursday, Majority Leader Mitch McConnell (R-KY) said he suggested $1,200 direct checks per taxpayer and $2,400 for married couples, ABC News reported. Treasury Secretary Steven Mnuchin wants each adult to receive $1,000 a month and each child to receive $500.
The Senate also proposed $1 trillion in spending, which includes aid to airlines and direct payments to American households, The Wall Street Journal reported.
