Trump Administration Examining Idea of Back-to-Work Bonuses -- 3rd Update
May 26 2020 - 5:39PM
Dow Jones News
By Andrew Restuccia
WASHINGTON -- The Trump administration is examining proposals to
provide cash incentives to encourage unemployed Americans to return
to work, according to a top economic adviser, as the White House
looks to revive the economy.
The-back to-work bonus is "something we're looking at very
carefully," Larry Kudlow, the director of the White House National
Economic Council, said during an interview on Fox News.
Mr. Kudlow made the comments after he was asked about a proposal
by Sen. Rob Portman (R., Ohio) to provide a temporary $450-a-week
bonus for unemployed workers returning to work, on top of their
wages. Rep. Kevin Brady (R., Texas), the top Republican on the
House Ways and Means Committee, has also discussed the idea and has
spoken to Mr. Kudlow about it, according to a congressional
aide.
Republicans joined with Democrats in March to pass an
economic-aid bill that included enhanced unemployment payments of
$600 a week through July. Democrats want to extend that funding
into next year. The White House and top GOP lawmakers have rejected
that plan but have said they are open to other ideas.
"The trouble with the $600 plus-up -- and maybe we needed it in
that emergency period -- but frankly it's a major disincentive to
go back to work," said Mr. Kudlow. He predicted that provision
won't be included in the next coronavirus-response package. He also
said President Trump remains interested in a payroll-tax cut, an
idea that has gained little traction among Democratic or Republican
lawmakers.
House Democrats earlier this month passed a $3 trillion aid bill
that includes extending the enhanced jobless benefits as well as an
additional round of direct payments to most U.S. households and $1
trillion in aid to states and cities. They argue Congress needs to
approve more aid now, to tide people over into next year.
"Sen. [Mitch] McConnell ought to take it up, ought to consider
it, and let the Senate work its will," said House Majority Leader
Steny Hoyer (D., Md.) on Tuesday.
Senate Republicans have taken a go-slow approach on further aid
as they bet on the economy reopening, and they have emphasized
protecting businesses from coronavirus-related lawsuits.
"There's still a likelihood that more will be needed," said
Senate Majority Leader McConnell (R., Ky.) at an appearance Tuesday
in his home state, while reiterating that the House bill was a
nonstarter. He called short-term liability shields "absolutely
essential" for health-care providers and other businesses.
The Trump administration in April released guidelines that said
states should move to the first phase of reopening after exhibiting
a downward trend of documented cases of Covid-19 or positive tests
over a two-week period.
All 50 states have begun taking steps to reopen, even though
many of them have yet to meet the administration's recommendations
for reopening. Asked whether the president is concerned about
states not following the guidelines, a White House official said,
"The guidelines are just that -- they are guidelines to maintain
public health. They are not mandatory."
White House press secretary Kayleigh McEnany encouraged
Americans to follow the administration's social-distancing
guidelines following a Memorial Day weekend in which large groups
gathered in some states in violation of the recommendations.
"There are ways to do this and the president would underscore to
everyone that we should be taking into account these measures," she
said during a Tuesday White House briefing.
The president and his advisers believe a speedy reopening will
boost the U.S. economy, potentially beginning to reverse the
negative trends ahead of November's election. They have predicted
that the U.S. will see strong growth in the third quarter of the
year.
President Trump on Tuesday defended his administration's
response to the coronavirus as the U.S. death toll neared 100,000.
He argued that the number of deaths would be much higher if he
hadn't limited travel from China in January.
The president has come under repeated criticism from
public-health officials, lawmakers and others for his response to
the outbreak, with experts faulting the administration for not
doing more to set up a robust testing system earlier. Experts have
also said many early cases in New York came from European nations,
not China.
Meanwhile, a senior White House official who tested positive for
the Covid-19 returned to work on Tuesday following a
self-quarantine. Katie Miller, Vice President Mike Pence's press
secretary, said she tested negative for the virus three times
before returning.
Ms. McEnany told reporters that she didn't know if other White
House staffers had tested positive for the virus and might not be
able to get that information for privacy reasons.
Write to Andrew Restuccia at Andrew.Restuccia@wsj.com
(END) Dow Jones Newswires
May 26, 2020 17:24 ET (21:24 GMT)
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