A top White House adviser says that President Donald Trump wants “at least $2 trillion” for the next stimulus bill.
Here’s what you need to know — and what it means for you.
Stimulus Bill Could Be At Least $2 Trillion
According to White House trade advisor Peter Navarro, the president wants the next stimulus to bill “at least $2 trillion.” This is nearly double the $1 trillion amount that Senate Majority Leader Mitch McConnell said he would target and two-thirds the size of the $3 trillion Heroes Act that House Democrats passed. Navarro made the comments about the fourth stimulus package in an interview with Maria Bartiromo on Fox Business.
Navarro said the focus of the next stimulus bill could be manufacturing jobs. This is somewhat a different narrative than previous chatter around a return-to-work bonus and a payroll tax cut (both of which could still be included). Navarro said:
- COVID-19 has hit major metropolitan areas, specifically impacting “high rise density” and “mass transit.” If those are not working, “then you can’t have a city.”
- A “key thrust” of any Phase 4 stimulus has to be more manufacturing jobs.
- The focus should be “Buy American,” “Hire American” and “Make it in the USA.”
- When you support more manufacturing jobs, you can create a ripple effect for to create more service-sector jobs that have been dislocated [from the COVID-19 pandemic].
“The president is very interested in something on the order of least $2 trillion, with the bulk of that focused on bringing home our manufacturing base.” Navarro cited pharmaceuticals and medical supplies and equipment as two sectors that House Minority Leader Kevin McCarthy believes there should be an incentive in the next stimulus bill to bring manufacturing jobs to the U.S. from abroad.
What are some incentives that could be available?
Navarro said that the U.S. should bring home more manufacturing jobs to produce high-quality American-made products. Bartiromo asked what types of incentives Congress can provide to companies to bring manufacturing job back to America. Navarro said that:
- [The next stimulus bill] needs to create demand, supply and investment signals to bring manufacturing to the U.S.
- A payroll tax cut is “critical” to “create the appropriate incentives for employers to keep workers working” and is “an implicit pay raise for the workers”
- Medicine, medical supplies and equipment should be bought from America
“First-time tax cuts, deregulation, cheap energy and above all fair trade deals,” Navarro said. “We’re going to do all of that, but we’ve got to do more. We’ve got to focus on this buy American, hire American, make it here so that all around this great country we’re going to have Americans making stuff with high technology.”
Don’t expect a second stimulus check
While a second stimulus check is possible, Navarro did not discuss the idea of a second stimulus check as a focus of the next stimulus bill. Treasury Secretary Steven Mnuchin said on Capitol Hill this week that the Trump administration is “seriously considering” more stimulus. That stimulus could come in several forms of “direct money,” but primarily would be focused on helping to get people back to work. His reference to direct money could refer to a second stimulus check or could refer to funding for businesses in specific sectors of the economy that have been disproportionately impacted by Coronavirus. However, don’t expect a second stimulus check. The House approved the Heroes Act, a $3 trillion stimulus bill that includes a second stimulus check of up to $1,200 for each individual and $1,200 for each dependent (up to three dependents). However, the Senate will not approve the Heroes Act in its current form and McConnell doesn’t support a second stimulus check.
What’s Next
Senate Republicans and White House advisers will collaborate to draft the next bill. However, there may be differences over size ($1 trillion vs. $2 trillion) and priorities ranging from return-to-work bonus, a payroll tax cut and financial incentives to bring manufacturing jobs from abroad. The Senate won’t vote on the fourth stimulus package until July at the earliest.