On The Money: GOP senators heed Fed chair’s call for more relief | Rollout of new anti-redlining laws spark confusion in banking industry | Nearly half of American households have lost employment income during pandemic
Happy Wednesday and welcome back to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
See something I missed? Let me know at email@example.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.
THE BIG DEAL — GOP senators heed Fed chair’s call for more relief: Senate Republican support for moving the next coronavirus relief bill as soon as next month is growing after Federal Reserve Chairman Jerome Powell warned lawmakers this week that the economic damage caused by the coronavirus pandemic could last for years.
Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellDemocrats to probe Trump’s replacement of top Transportation Dept. watchdog McConnell: Trump ‘certainly within his authority’ to fire IGs GOP senator predicts a ‘less than 50 percent chance of passing another bill’ MORE (R-Ky.) has put the brakes on further coronavirus relief negotiations, citing the budgetary impact of trillions of dollars in unanticipated spending.
But a growing group of GOP senators, which includes some of the conference’s most vulnerable members in this year’s elections, say they shouldn’t let another month pass without significant progress on another economic relief package.
The calls from vulnerable senators to take action are likely to be heard by McConnell, who is focused on keeping the Senate in GOP hands. The Hill’s Alexander Bolton has more here.
The Hill event
Treasury Secretary Steven MnuchinSteven Terner MnuchinGOP lawmakers call for new sanctions on senior Chinese officials On The Money: Powell, Mnuchin split on benefits of easing COVID-19 restrictions | Warren, Mnuchin spar over Treasury’s 0B bailout fund | Fight emerges over unemployment benefits in next relief bill Senators press Mnuchin, Powell over scope of coronavirus bailouts MORE headlining The Hill’s Advancing America’s Economy Summit tomorrow Thursday, May 21, 2020 [Beginning at 11AM EST/ 8AM PST] … REGISTER NOW!!!
LEADING THE DAY
Rollout of new anti-redlining rules sparks confusion in banking industry: A top federal bank regulator on Wednesday released a sweeping revision of anti-redlining rules Wednesday amid reports about his pending resignation, spurring alarm and confusion among the banking industry and its critics.
- The Office of the Comptroller of the Currency (OCC) unveiled new rules for banks and regulators to follow under the Community Reinvestment Act (CRA), a 1977 law that requires banks to serve low-income communities and finance loans and projects in areas historically neglected by the financial sector.
The OCC and Federal Deposit Insurance Corporation (FDIC) unveiled a joint proposal in December to update CRA regulations, which are widely acknowledged by the industry and consumer advocates as outdated. The CRA regime has not been substantially revised since 1995, well before the internet fundamentally reshaped consumer banking.
But Comptroller of the Currency Joseph Otting released the final version of those rules Wednesday without the FDIC on board, and just hours after several media outlets reported that he planned to resign this week. Otting was also absent from a Wednesday call with reporters about the CRA proposal, a surprise given his intense focus on revamping the law and his history of accessibility with the media.
“He’s spent every waking day of his controllership on this rule but he’s not available,” said OCC chief operating officer Brian Brooks, the agency’s second in charge, when asked why Otting wasn’t on the call. I’ve got more here.
Nearly half of American households have lost employment income during pandemic: Nearly half of Americans say in a new survey that they or someone in their household has lost employment income because of the coronavirus pandemic, a devastating loss that has fallen most heavily on lower income workers.
- The Census Bureau’s survey, meant to track the pandemic’s impact on Americans, shows 47.5 percent of all households reporting job losses.
- More than half of households with incomes under $50,000 say they have seen their incomes slide, as have more than half of households in which no one has attained a bachelor’s degree
- Households headed by people under the age of 55 were more likely than not to have lost income, and almost twice as many people between the ages of 18 and 24 said they had lost income. Both African American and Hispanic households were more likely than not to lose income, the report found.
The Hill’s Reid Wilson breaks down the dismal data here.
States could face $765b shortfall: study: State budgets could face a $765 billion shortfall in the coming three years, according to a study from the left-leaning Center on Budget and Policy Priorities.
- The CBPP report said it will be crucial for the federal government to provide aid to states, which are required to balance their budgets and can’t run up deficits like the federal government.
- Michael Leachman, CBPP’s vice president for state fiscal policy and author if the study, estimated states will face a $600 billion deficit even taking into account various state “rainy day” funds that could be used.
“Without substantial federal help during this crisis, they very likely will deeply cut areas such as education and health care, lay off teachers and other workers in large numbers, and cancel contracts with many businesses,” Leachman wrote. The Hill’s Niv Elis explains why here.
Senators offer bipartisan bill to create tax credit for costs of skills training: A bipartisan group of senators on Wednesday introduced legislation to create a tax credit for skills training costs in an effort to help people who have lost their jobs due to the coronavirus pandemic.
The legislation is being offered by Sens. Amy KlobucharAmy KlobucharFEC regains authorities after Senate confirms Trump nominee as commissioner Democrats call on DHS to allow free calls at ICE detention centers Klobuchar and Harris could bolster Biden in the Midwest MORE (D-Minn.), Ben SasseBenjamin (Ben) Eric SasseWhite House withdraws ATF nominee after GOP pushback School board member demands Sasse apologize for ‘despicable’ graduation speech The Hill’s Morning Report – Presented by Facebook – Trump taking malaria drug; mayor eyes DC reopening MORE (R-Neb.), Cory BookerCory Anthony BookerBipartisan Senate group offers new help to state, local governments Liberals embrace super PACs they once shunned Trump and Biden signal bitter general election with latest attack ads MORE (D-N.J.) and Tim ScottTimothy (Tim) Eugene ScottBottom line Hopes fade for coronavirus relief deal before June Five takeaways as Senate panel hears from Fauci, Trump health officials MORE (R-S.C.).
Under the bill, people who lose their jobs in 2020 due to the pandemic would be eligible to receive a fully refundable tax credit of up to $4,000 to cover the cost of training expenses incurred through the end of 2021.
The Hill’s Naomi Jagoda breaks it down.
GOOD TO KNOW