Good morning. With Congress still apparently no closer to agreeing to a package to help those Americans whose finances have been hit by the economic impact of Covid-19, Donald Trump says he intends to step in. Here’s more from my colleague David Smith in Washington DC:
Donald Trump has promised unilateral action to provide economic relief for millions of Americans hit by the coronavirus pandemic, but he offered few specific details and admitted the move is likely to face legal challenges.
The president’s pledge to rescue people from poverty and homelessness took place against the unlikely backdrop of his luxury golf club, where annual fees run to hundreds of thousands of dollars a year, with members in T-shirts not physically distancing as they watched and applauded him.
Trump called the sudden press conference at his club in Bedminster, New Jersey, on Friday evening after the collapse of talks between White House and Democratic negotiators in Washington. “If Democrats continue to hold this critical relief hostage, I will act under my authority as president to get Americans the relief they need,” the president said.
He vowed to suspend payroll tax and extend unemployment benefits until the end of the year, defer student loan payments indefinitely and forgive interest, and extend a moratorium on evictions.
Asked when the executive orders would be ready, Trump said it “could be by the end of the week. They’re being drawn by the lawyers right now.”
Meanwhile, my colleague Dominic Rushe tells the story of one American feeling the effects of the delay in agreeing a new package of benefits:
Karen L, who did not wish to give her last name, was furloughed by American Airlines in April. The resident of Miami has been struggling to get her unemployment checks ever since. Florida and other states have been overwhelmed by the number of claims.
“They owe me 15 weeks,” she said. “I just keep calling but it’s a futile effort. Every day, three or four hours, sending emails. I am losing hope.”
Her partner, who also lost his job, was receiving the extra $600 but is now qualified for just $125 a week. His payments have stopped and the couple have no idea why. “We have maxed out our credit cards,” she said. “I had to tell my landlord we couldn’t pay the rent.”
Rodgers said inaction from Congress was causing “unnecessary strain and stress” and that the money was needed for as long as the pandemic continued. His research shows that the states with higher coronavirus rates have the highest unemployment claims. “I would be more sympathetic to the Republican view if we had stronger job creation,” he said.
Without more aid to states and local government, a new wave of layoffs is likely for federal employees. Those losses would disproportionately affect women and people of color who have already been hit hardest by the recession, said Rodgers. “The public sector is where many women and minorities got their toehold in the middle class. If these jobs aren’t supported, we will see an expansion in gender and racial income inequality.”
