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President Donald Trump has announced plans to unveil on Tuesday evening a major plan to soften the financial blow of the coronavirus, which has sparked recession concerns in the largest economy.
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"We'll explain what we're doing on an economic standpoint and from an economic standpoint. But they will be very - very dramatic," Trump said Monday. "And we have a great economy, we have a very strong economy, but this came - this blindsided the world."
But details of the proposal remained uncertain just hours before the expected announcement, according to a White House official who spoke to Markets Insider on the condition of anonymity. Trump advisers planned to meet with Senate Republicans around noon on Tuesday to discuss the proposal.
Here are some of the key measures that have been floated in the White House and on Capitol Hill.
Democratic leaders have pressed the White House on a temporary expansion of paid sick leave and other protections for hourly workers. Trump and key advisers on the White House coronavirus task force have expressed support for a policy that would ensure Americans stuck at home amid the COVID-19 outbreak would not miss out on paychecks.
In a National Bureau of Economic Research paper published Monday, economists found that about 20% more employers in states with mandated paid sick leave offered it after the laws took effect. Employees took about two more days off a year, with the average cost to employers at about 20 cents per hour.
Payroll-tax cuts
Trump has repeatedly teased the prospect of a payroll-tax cut in recent days. There have been signs of bipartisan support for such a policy, though Democratic leaders said Monday they had not yet been in touch with the White House.
But with the federal budget deficit set to top $1 trillion this year, there is some debate among White House officials about what size any package should be. And because payroll-tax cuts directly aid only those who are employed, their reach would be limited in a downturn.
Targeted relief for airlines and other travel industries
Both the White House and key members of Congress have raised the possibility of federal aid for the cruise, travel, and airline industries in recent days. Those industries have been hit particularly hard by COVID-19, which has led to international restrictions on travel and commerce.
The aid could happen through tax deferments, the White House official told Markets Insider, but other proposals remained under consideration early Tuesday.
Small business loans
The proposal could also seek to extend credit to the small businesses that tend to have some of the slimmest margins. The White House has indicated Small Business Administration loans could be expanded even further during the COVID-19 outbreak. In an emergency funding package passed last week, lawmakers included billions in low-interest SBA loans.
The White House plans to announce a 'very dramatic' economic plan as the coronavirus raises recession fears. Here are the 4 steps it could take.
