Maxine Waters' Coronavirus Pandemic Bill
Today, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, released plans for a legislative package to provide a comprehensive fiscal stimulus and public policy in response to the coronavirus pandemic.
“As the COVID-19 pandemic continues to spread, we have seen the devastating effects on workers, consumers, investors, markets, and the economy,” said Chairwoman Waters. “Low income communities were already struggling before this crisis began and will likely be hit particularly hard by the coming recession. This is an urgent public health crisis that has quickly harmed our entire economy, and it demands swift and bold action. The Financial Services Committee will play a central role in that response.
“Media reports have indicated that the Trump Administration plans to request upwards of $850 billion in aid for certain impacted industries. If true, it is apparent that this Administration is missing the point – families must come first. That is why I am proposing a bold fiscal stimulus package and public policy response that will benefit hardworking and vulnerable Americans who may face financial hardship or even eviction or foreclosure as a result of the coronavirus crisis.
“The circumstances we are facing are unprecedented and will require creative approaches. The response should not include financial deregulation; regulators must not roll back the safeguards that have been put in place to protect the financial system and economy. In fact, this crisis has demonstrated that the safeguards Democrats enacted as part of the Dodd-Frank Act are working. By requiring higher capital and liquidity buffers, banks are well-positioned to continue lending and play an important countercyclical role. However, America’s consumers, small businesses, and vulnerable populations are suffering. It is time for a policy and fiscal response to address their needs.”
The legislative package would:
Protect Consumers and Bolster the Economy
1. At Least $2,000/month for all adults and $1000 for each child. The Federal Reserve would be directed through a money-financed fiscal program, to fund automatic stabilizers in the form of at least $2,000 for every adult and an additional $1000 for every child for each month of the crisis. Adults would be eligible to withdraw these funds from financial institutions or receive them directly in the mail via the IRS. This funding tool would enable the Federal Reserve to more directly stimulate the economy and provide families with the ability to purchase necessities like food and medicines. This provision would also prevent payments from going to millionaires and billionaires.
2. Suspend all consumer and small business credit payments (mortgages, car notes, student loans, credit cards, small business loans, personal loans, etc.) during the pandemic. This bold step would enable consumers and small businesses, including small farms, to weather the crisis by eliminating debt payments for the duration of the crisis at a time when many Americans will be confined to their homes and unable to work or bring in income. Borrowers who make payments during this period, should have their payments applied to their accounts as timely. Borrowers with payment suspensions should not accrue any interest or fees during the payment suspension period, and should be provided with affordable options to repay arrearages.
3. Establish a facility by the Federal Reserve or Treasury to reimburse creditors, and servicers for lost revenue and expenses, including payment advances. This provision would finance the suspension of the credit products listed above to ensure that financial institutions remain solvent as a result of millions of consumers not paying their bills.
4. Suspend all negative consumer credit reporting during the pandemic. There would be a total moratorium on negative reporting during the pandemic and for 120 days thereafter. Afterwards, consumers could add their names to a database for continued protection, similar to Chairwoman Waters’ legislation related to suspending reporting during a government shutdown. In addition, consumer credit reporting agencies would be prohibited from lowering a consumer’s credit score. Rep. Sherman introduced a version of this bill last week, and the House passed similar legislation focused on consumers affected by a government shutdown as part of H.R.3621, Comprehensive CREDIT Act of 2020.
5. Prohibit debt collection, repossession, and garnishment of wages during the pandemic. This provision would ban the collection of all consumer debt, including medical debt, and prohibit the garnishment of wages or repossession of assets during the pandemic, and for 120 days after the pandemic ends.
6. Ensure protections for territories. This provision would ensure that persons residing in U.S. territories receive the same protections and relief of this Act as persons residing in states. . . .
https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=406440
Start calling your Reps. We need to back Democrats that are fighting for us.
= new reply since forum marked as read
