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    Sunday, May 12, 2024

    Pelosi: 'Guaranteed income' plan for Americans worth considering

    Speaker of the House Nancy Pelosi, D-Calif., meets with reporters in Washington in May 2019. (AP Photo/J. Scott Applewhite)

    WASHINGTON - House Speaker Nancy Pelosi, D-Calif., said Monday that Congress might need to consider offering guaranteed income to some Americans to help the country recover from the economic impact of the coronavirus pandemic. 

    "We may have to think in terms of some different ways to put money in people's pockets," Pelosi said on MSNBC. "Others have suggested a minimum income, a guaranteed income for people. Is that worthy of attention now? Perhaps so."

    Her comments came as House Democrats push forward to unveil a major new economic rescue bill in coming days. Democrats want to boost aid for cities and states, increase funding for nutrition assistance, and raise financial support for individual Americans. The emerging Democratic bill is certain to run into opposition from most Senate Republicans, and could set off a fierce ideological and partisan battle about how much further the federal government should go in its coronavirus response as the nation's economy reels heading into the election.

    The idea of a universal basic income was popularized by former Democratic presidential candidate Andrew Yang, who advocated giving every adult American $1,000 a month. When he was pitching his idea, however, the unemployment rate was below 4%.

    The idea has gained traction in recent weeks though as a possible response to massive job losses during the pandemic, with even some Republicans warming to it. Political leaders are hunting for ways to address the economic fallout after more than 26 million Americans have filed unemployment claims in less than two months.

    The unemployment rate in February was 3.5%, but it is believed to have skyrocketed to close to 20% in April, and state unemployment assistance programs are overwhelmed.

    Pelosi offered no specifics during her MSNBC interview of how a guaranteed income program might work. Previously, congressional Democrats have focused on sending a second round of direct checks to Americans to build on the $1,200 payments that are being sent out under the $2 trillion Cares Act Congress passed in late March.

    Pelosi also advocated extending the period of loans available under the small-business initiative, known as the Paycheck Protection Program, to longer than the two months in law. She also suggested that the small business program could be expanded to businesses with 1,000 employees instead of the current 500.

    "I think we should extend the time, I really do," she said, acknowledging that the financial challenges of businesses could extend well beyond a two-month window.

    "If they are not being able to get the same kind of small business loan, perhaps in some cases, again as you said, we have to extend the time, but in some cases, we have to also perhaps expand it to a thousand people rather than just 500," Pelosi said.

    Pelosi's comments indicate the fluid and wide-ranging debate under way as House Democrats draft another massive response bill that many expect will rival the $2 trillion Cares Act in size and scope. The centerpiece of the legislation is expected to be a massive infusion of cash to stabilize state and local budgets, which Pelosi has suggested could be around $700 billion.

    Democrats are also weighing multiple other items, including direct assistance for housing, money for election security and vote-by-mail initiatives, hazard pay for front-line workers, child care assistance, and more money for health providers and hospitals.

    The debate is taking shape with many House Democrats eager to take a greater role shaping the federal response to the pandemic. But with Congress already devoting nearly $3 trillion to the federal response to the coronavirus with four bipartisan bills, the debate over the next step in the response is already taking on more partisan overtones.

    Senate Majority Leader Mitch McConnell, R-Ky., has said it's time to hit the "pause" button on spending more money, at least until lawmakers return to the Capitol in person. That's supposed to happen on May 4 though it's unclear if that deadline will be met.

    And Democrats' push to answer governors' call for money to prop up their battered budgets is running into growing resistance from Republicans who say it's not their job to help out states that were mismanaged long before the coronavirus surfaced.

    President Donald Trump has indicated growing sympathy toward that viewpoint, writing on Twitter Monday: "Why should the people and taxpayers of America be bailing out poorly run states (like Illinois, as example) and cities, in all cases Democrat run and managed, when most of the other states are not looking for bailout help? I am open to discussing anything, but just asking?"

    Congress last week passed a nearly $500 bill devoting an additional $320 billion to the small business Paycheck Protection Program. But that money is already in huge demand and could run out by next week.

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