| Updated December 22, 2020
For states and thousands of local governments, Congress’ $900 billion stimulus package is about to pass with a gigantic hole in the middle.
The bill contains no new aid for state and city governments as they face down yawning deficits and the prospect of having to slash services the public needs more desperately than ever. Virtually every state has laid off thousands of employees or slashed tens of millions of dollars in crucial services. Cities large and small are on the brink and clamoring to avoid cuts to services as basic as firefighting.
Democrats have proposed up to $1 trillion in state and local aid to stanch the bleeding. But Republicans, under pressure from Senate Majority Leader Mitch McConnell, opposed a new round of state and local aid unless Democrats agreed to sweeping liability protections for businesses. The two sides tabled the question in order to pass a new package before the end of the year.
Absent Federal Aid, How Bad Are State Budgets? The new congressional stimulus package does not include direct aid for states and localities. Only a few states have seen revenues increase from last year, meaning cutbacks are coming due to COVID spending pressures. Alan Greenblatt, Senior Staff Writer | December 22, 2020 | Analysis
Last week, Virginia Gov. Ralph Northam revealed a two-year budget package that included no tax increases and substantial new spending. It would restore nearly half the nearly $3 billion in spending that Northam froze earlier this year, while increasing education spending by $500 million, mostly to help schools retrofit for the coronavirus pandemic. Northam’s budget even allows for more savings, devoting $650 million to Virginia’s rainy-day fund.
Stimulus check calculator: How much will I get from the second coronavirus relief bill? :: WRAL com wral.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from wral.com Daily Mail and Mail on Sunday newspapers.
President Trump signs stopgap spending bill to keep government open until Dec. 28
From CNN’s Daniel Allman and Manu Raju
US President Donald Trump gives a thumbs up as he departs on the South Lawn of the White House, on December 12. Al Drago/Getty Images
US President Donald Trump signed a stopgap spending bill to keep the government open until December 28.
Just after midnight, Trump signed the bill, H.R. 1520, known as the “Further Extension of Continuing Appropriations Act, 2021,” which provides fiscal year 2021 appropriations to “Federal agencies through Monday, December 28, 2020, for continuing projects and activities of the Federal Government,” a statement from the White House read.
9:52 a.m. ET, December 21, 2020
It will take at least 2 weeks for money to hit peoples bank accounts after stimulus bill passes, experts say
From CNN s Katie Lobosco
A second round of stimulus payments is included in a coronavirus relief package struck by congressional leaders late Sunday.
Lawmakers are expected to vote on the deal later today. It would provide direct payment checks of up to $600 per adult and child, but experts say it will take at least two weeks for the Treasury to get cash into individuals bank accounts after legislation is signed. The timing could be more challenging this time, but the IRS could likely begin to get the money out in January, said Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center.