Lawmakers in Washington are working to finalize an agreement to keep the government funded through the upcoming election, leaving the future of a second COVID-19 stimulus bill uncertain.
Negotiations over additional stimulus legislation have been stalled since early August as Republicans and Democrats remain divided over the cost of the package. Senate Republicans attempted to force Democrats back to the table by introducing a narrow, targeted package earlier this month. The “skinny” bill failed after Democrats unanimously voted to block it, reaffirming their desire for broader legislation.
There was some hope that the Sept. 30 deadline to fund the government force a breakthrough, with a must-pass spending bill capable of serving as a vehicle for at least some stimulus. But House Speaker Nancy Pelosi (D-Calif.) and Treasury Secretary Steven Mnuchin have agreed to avoid a possible government shut down so close to the election by opting for clean continuing resolution to extend funding at current levels until sometime after Nov. 3.
Congress could pair stimulus with government funding when the continuing resolution expires later this year, but some lawmakers are still pushing for a stimulus bill before the election. The bipartisan Problem Solvers Caucus has outlined a compromise proposal
in an attempt to break the deadlock. President Donald Trump expressed support for the plan, but stopped short of endorsing it.
Pelosi has also indicated stimulus remains a top priority, telling Democrats she would keep the House in session until there is bipartisan agreement. However, it is unclear whether Senate Majority Leader Mitch McConnell (R-Ky.) and the Trump administration share her resolve. Both the House and Senate are currently scheduled to depart Washington in early October for the final stretch of the election and lawmakers will be eager to return home to make their final case to voters.
Washington National Tax Office
+1 202 861 4144
Washington National Tax Office
+1 202 861 4143
Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.