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Updated August 11th, 2020 at 07:28 IST

Donald Trump tries bypassing Congress for virus relief

President Donald Trump's end run around Congress on coronavirus relief is raising questions about whether it would give Americans the economic lifeline he claims and appears certain to face legal challenges. Democrats called it a pre-election ploy that would burden cash-strapped states.

Donald Trump tries bypassing Congress for virus relief
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President Donald Trump's end run around Congress on coronavirus relief is raising questions about whether it would give Americans the economic lifeline he claims and appears certain to face legal challenges. Democrats called it a pre-election ploy that would burden cash-strapped states.

After negotiations with lawmakers on the next package of pandemic economic assistance hit a wall, Trump used what he said were the inherent powers of the presidency to forge ahead on tax and spending policy that Congress says it is granted by the Constitution.

Trump asserted he had the authority to defer payroll taxes and extend an expired unemployment benefit, although at a lower amount than what the jobless had been getting during the crisis. His reelection chances imperiled by the pandemic, the Republican president contends his orders will help millions of Americans.

Lisa Mascaro, congressional correspondent for The Associated Press, says the move is ironic considering the president has blasted political opponents for using similar action.

"President Trump himself campaigned against on the campaign trail, talking about how he would be a deal maker and come in to Washington and make deals and be able to work with Congress in ways that that President Obama couldn't," Mascaro says.

But the orders appear to carry less weight than Trump promoted and cut federal relief spending by shifting more onto the shoulders of struggling states. Critics said the actions crossed a legal line and fell well short of what is needed to help right the fragile economy.

Though certain to further strain relations with Congress, the moves were framed by the White House as the president breaking through the Washington gridlock in order to directly distribute aid. Advisers hope it will sustain an economic recovery that Trump likely needs to defeat Democrat Joe Biden in November.

The president wants to continue paying a supplemental federal unemployment benefit for millions of Americans put out of work during the outbreak. But his order called for up to $400 payments each week, compared with the $600 that people had been receiving. Trump said states would cover 25% of this money even as many are dealing with major budget shortfalls.

With an eye on reversing his slide in the polls, Trump took full credit for the measures, which he signed at his New Jersey golf club on Saturday after congressional talks broke down this past week. Democrats initially sought a $3.4 trillion package but said they lowered their demand to $2 trillion. Republicans had proposed a $1 trillion plan.

Trump also acted to defer payment of the payroll tax, a long-pushed goal that had little support from either party on Capitol Hill, and federal student loans. His order on housing is not a guarantee against eviction, as he claimed, but instead directs the departments of the Treasury and Housing and Urban Development to identify money that could help those struggling to pay their monthly rent.

Trump said the employee portion of the payroll tax would be deferred from Aug. 1 through the end of the year, and he raised the possibility of making it permanent, though experts said he lacked that authority. The temporary deferral would not directly aid unemployed workers, who do not pay the tax when they are jobless. Employees would need to repay the federal government eventually without an act of Congress.

 

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Published August 11th, 2020 at 07:28 IST

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