A new slimmed-down COVID-19 relief package would temporarily reimburse parents for state-based scholarship funds, increase the deduction for charitable contributions, and continue the small business loan program.
The new bill, introduced by Senate Majority Leader Mitch McConnell, R-Ky., is expected to receive a vote in the Senate on September 10.
Democrats were quick to criticize the measure for falling short of their demands. “Republicans call this a skinny or targeted proposal, but it would be more appropriate to call it emaciated,” Senate Minority Leader Charles E. Schumer, D-N.Y., said on the Senate floor.
The bill is not expected to pass since it will need at least 60 votes in the Senate, with Democrats accusing McConnell of trying to help vulnerable Republicans with a “check the box” bill.
Instead, Democrats called on Republicans and the administration to return to the negotiating table and provide taxpayers with more relief. Schumer said the skinny bill being pushed by Republicans is laden with poison pills, including a provision based on the School Choice Now Act (S. 4284), which was introduced by Senate Finance Committee member Tim Scott, R-S.C. That provision would give individuals two years of tax credits for contributions to scholarship-granting organizations, allowing them to enroll children in private schools.
The bill would also expand section 529 savings plans to allow for home-schooling and elementary and secondary school expenses. Sen. Ted Cruz, R-Texas, has been an advocate of that program and has blocked legislation in the past because it failed to include the expansion.
Those provisions are new to the discussion and were not included in a “skinny package” released by Republicans last month. Republicans also agreed to double the $300 above-the-line deduction for charitable contributions that taxpayers can claim for 2020 that was enacted under the Coronavirus Aid, Relief, and Economic Security Act (P.L. 116-136).
No Change to PPP, Checks
Senate Republicans are still willing to fund the Paycheck Protection Program, giving businesses another opportunity to apply for loans if they qualify.
A business would have to see a 35 percent year-over-year drop in quarterly receipts and have fewer than 300 employees to apply. The forgiveness process would also be eased for current and future PPP borrowers receiving loans of $150,000 or less.
The PPP expansion is expected to cost $257.7 billion. Republicans are looking to use $146 billion left over from the first package in the new one. Similar to the last skinny bill, this one also leaves out further economic stimulus payments of $1,200 to taxpayers making under $75,000.