U.S. Senate Republicans released their US$1-trillion COVID-19 relief proposal Monday afternoon, which includes a reduction in federal unemployment benefits, another round of US$1,200 direct payments to individuals, and liability protection for businesses and schools.

As part of the US$2.2-trillion coronavirus relief bill passed in late March, Congress agreed to provide extra US$600 unemployment benefits per week, which are set to expire at the end of this month.

The Senate Republicans’ plan would slash extra weekly unemployment benefits from US$600 to US$200, which could be a key sticking point in negotiations with Democrats, who have wanted to maintain the level of benefits through January.

The White House and Republicans have contended that the US$600 benefits have created a financial disincentive for people to return to work, an argument refuted by some economists, who believe employers were not hiring because businesses were closed by stay-at-home orders or because they lacked demand from customers, and many people are ready to work regardless of how generous unemployment insurance is.

“Americans need to buy food & pay rent. Republicans shouldn’t be quibbling over US$600 for workers on unemployment,” House of Representatives Speaker Nancy Pelosi, a California Democrat, said on Twitter.

The Democrat-controlled House passed a US$3-trillion coronavirus relief package in May, but didn’t gain approval from Republican-held Senate. Pelosi and other Democratic leaders have been blaming the Republicans for delays in rolling out their proposal.

U.S. lawmakers are under immense pressure to craft a new fiscal package as a resurgence of COVID-19 cases across the country threatens to derail the nascent economic recovery.

“Republicans have created a serious framework. The question is whether Democrats will come to the table in good faith,” Senate Majority Leader Mitch McConnell, a Kentucky Republican, said on Twitter.

(Xinhua)