White House, Senate reach deal for US$2 trillion stimulus package
25 March 2020, Written by Business News Australia
The wheels are now in motion for the largest economic stimulus package in US history, after the Trump Administration and the Senate reached a deal to pump US$2 trillion (AUD$3.3 trillion) into the economy.
The Washington Post reports the breakthrough was announced at 1:30am on the Senate floor by Senate Majority Leader and Mitch McConnell (Republican), and Minority Leader Charles E. Schumer (Democrat).
"After days of intense discussion, the Senate has reached a bipartisan agreement on a historic relief package for this pandemic. ... I'm thrilled that we're finally going to deliver for the country that has been waiting for us to step up," McConnell was quoted as saying.
The agreement follows five days of negotiations with officials from the Administration, and now the legislation is expected to pass both chambers of Congress.
The LA Times reports a Senate vote could occur by midday on Wednesday in the US, with the House potentially following soon after.
The publication reports negotiators close to the stimulus bill claim it includes US$300 billion for small businesses, US$150 billion for local and state governments, and US$130 billion for hospitals.
The proposal equates to more than 9 per cent of US annual gross domestic product (GDP). In comparison, Australia's $189 billion stimulus package is worth around 10 per cent of our country's GDP last year.
This proposed stimulus compares to an US$831 billion stimulus package implemented by the Obama Administration in response to the global financial crisis (GFC), more commonly known as the Great Recession in the United States.
Author: Business News Australia