Trump Pushes for Congress to Approve Funds for Small Businesses as Jobless Claims Increase
President Donald Trump on Friday, 10th of April, has urged Congress to approve a $250 billion funding measure for local businesses. This funding is to go without any addition.
Fellow Republicans are in support of the funding and are looking to push the proposed measure through to the Senate for approval.
Democrats, on the other hand, have strongly opposed this measure. The Democrats insist that the government make additional provisions for food relief, local government assistance, and funds for hospitals.
The Democrats, after rejecting the measure proposed by the Republicans, then went on the offensive and made plain their desires. However, they met strong opposition from the Republicans as well.
President Donald Trump has since then taken to lay blame on Democrats. He came strong on them for the deadlock over the proposed funding measures to help businesses to keep paying their labor force.
Trump then took twitter to reinstate his stand. He insisted that the funds should be for one reason and one reason alone- to help the businesses.
Democrats are blocking a 251 Billion Dollar funding boost for Small Businesses which will help them keep their employees. It should be for only that reason, with no additions. We should have a big Infrastructure Phase Four with Payroll Tax Cuts & more. Big Economic Bounceback!
— Donald J. Trump (@realDonaldTrump) April 10, 2020
The latest reports on the United States Jobless Claims reveal that another 6.6 million people filed for Jobless Claims. This number was a million more than the estimated number. The Jobless claims filed last week were also revised, and now, the Jobless claims in the United States have risen to a staggering 16.7 million. All within the last three weeks!
This rise caused the Fed to pump in about $2.3 billion to support mid-sized businesses. The Fed Chairman, Jerome Powell, stated in his economic update that the second quarter of the year will be very weak, and will see even more job losses. However, he expects that this will be temporary.
Once the COVID-19 pandemic, the unemployment numbers will drop, and the economy will regain its balance.
At the moment, though, things are a lot gloomy, and the small businesses need the $250 billion funds now more than ever.
President Trump implored both the Democrats to make it work. He is hoping that Republicans and Democrats will come together to complete the legislation and hasten the passage of the funding through the Senate. He expressed his optimism that the funding will be approved.
In the long run, this $250 billion loan for small businesses might turn into grants paid by the government. If at all this happens, the grants will be for only with the small businesses that meet certain terms set by the government.
The loan will be in addition to the $349 billion that has already been allocated and disbursed by Congress to relieve the effects of the COVID-19 pandemic. The number of cases in the United States over the last week has doubled and risen to about 500,000.
Senate Majority Leader, and Republican Mitch McConnell, hinted that there would be an additional discussion about the proposed small business funding.
These discussions will involve the top Congress leaders. This discussion will include the Speaker of the Democratic House of Representatives, Nancy Pelosi.