Business & Economy

On The Money: Sides tiptoe towards a COVID deal, but breakthrough appears distant | Expiring benefits raise stakes of stimulus talks | Stocks fade with eyes on Capitol

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THE BIG DEAL—Sides tiptoe towards a COVID deal, but breakthrough appears distant:

Party leaders seeking an elusive deal on a coronavirus stimulus package claimed more progress on Monday, but the slow headway appeared far short of the breakthrough needed to get more emergency relief to President Trump’s desk before Election Day.

The sheer number of outstanding disagreements has lengthened the odds that the sides can forge an agreement that can pass into law before the Nov. 3 elections. The Hill’s Mike Lillis explains here.

LEADING THE DAY

Expiring benefits raise economic stakes of stalled stimulus talks: Washington’s inability to pass a much-needed stimulus bill ahead of November’s election is expected to inflict further damage on the economy, potentially kneecapping its recovery as the expiration of key benefits looms.

Haggling between House Speaker Nancy Pelosi (D-Calif.) and Treasury Secretary Steven Mnuchin has progressed, with Mnuchin saying he is willing to sign on to a $1.8 trillion deal. But the sides say they remain far apart on key issues.

The extended wait for expanded unemployment benefits, aid to small businesses, health efforts to fight the virus, and funding for state and local government is expected to leave lasting scars.

“The consequences could be pretty severe,” said Shai Akabas, director of economic policy for the Bipartisan Policy Center. “It is critical for the economy to get support now, and each day, week, month that passes by is damage that can’t be undone.”

The Hill’s Niv Elis explains here.

Read more: Clock ticks on chance for coronavirus deal

Democrat urges IRS to quickly process Gold Star families’ refund requests: A Democratic lawmaker is urging the IRS to quickly process amended tax returns filed by the families of deceased military members after Congress enacted legislation last year to provide these families with tax relief.

“Gold Star Families are counting on prompt receipt of their refunds to help make ends meet in this time of economic uncertainty,” Rep. Elaine Luria (D-Va.) wrote in a letter late last week to IRS Commissioner Charles Rettig.

The background: 

Luria wrote in her letter that many eligible families filed amended 2018 tax returns in January or February but that most of them have yet to receive their refunds.

“These delays would create hardships for taxpayers in the best of times, but they are especially damaging in this current economic crisis,” Luria wrote.

The Hill’s Naomi Jagoda has more here.

More than 7 million households lacked bank, credit union accounts in 2019: Roughly 7.1 million U.S. households did not have an account with a bank or credit union in 2019, according to a report released Monday by the Federal Deposit Insurance Corp. (FDIC).

“It is encouraging that a record number of households had bank accounts in 2019, though we continue to pursue actions to create a more inclusive banking system,” FDIC Chairman Jelena McWilliams said in a statement.

I break down the survey here.

GOOD TO KNOW

ODDS AND ENDS