As a result of the #COVID19 pandemic, a very sharp economic decline now seems virtually inevitable — unless policymakers act much more boldly than they’re talking about. Many economists think that the economy is already in recession & that it’s going to get much, much worse. 1/
Given the shock to the economy, an aggressive federal policy response that helps families pay the bills, fills gaps in state budgets, and shores up consumer demand, is essential. 2/
Here are some key policy areas @CenterOnBudget is focusing on as critical to help the economy and families. This isn’t a comprehensive list, but concentrates on areas in which CBPP works: 3/
We must strengthen health access and coverage through Medicaid and the health insurance marketplaces, and provide states with substantial fiscal relief. 4/
States tax revenues will shrink even as states face higher Medicaid and other health costs due both to COVID-19 and an influx to Medicaid of people losing job-based coverage. 5/
Without fiscal relief, states will feel pressure to cut health and other basic services at the worst possible time, deepening hardship and making the economic downturn worse. 6/
Policymakers should do everything they can to help more people access health coverage by improving access and enrollment in Medicaid. For those who can’t access affordable coverage, the federal government should cover pandemic-related health care costs. 7/
It’s also vitally important to improve Unemployment Insurance. Many workers who lose their jobs do not qualify for UI at all, qualify for low benefits, or will exhaust their benefits before they can find a job, especially w/ many businesses shuttered. 8/
Congress should immediately expand access to Unemployment Insurance and increase the maximum number of weeks of benefits available. 9/
We must boost food assistance through SNAP. Benefit amounts should be raised, and the three-month limit on SNAP benefits for unemployed adults not raising children should be suspended for as long as the economy is weak. 10/
Congress should halt implementation of new Trump Administration regulations that would cut SNAP benefits and take SNAP benefits away from 4 million people. 11/
To help mitigate evictions, housing instability & homelessness, policymakers should provide add'l income assistance to households receiving SNAP, protect rental assistance programs from cuts, & provide resources to house people who are on the streets or crowded into shelters. 12/
Policymakers must boost families' incomes to cushion the blow from the downturn & bolster consumer demand. They can do this in part through stimulus payments that don’t leave out poor households w/out earnings. And they can improve working family tax credits like EITC & CTC. 13/
While the House’s Families First bill provides new paid sick leave and longer periods of paid family and medical leave to many workers, it leaves out important groups. 14/
Policymakers should expand paid leave to include low-wage workers in large companies & caregivers for older adults and people w/ disabilities; also should help cover companies’ costs for this during the emergency, to prevent costs from causing more layoffs & business closures 15/
Swift and adequate action in these areas will help in addressing the health crisis & limit the severity and duration of the economic downturn. Even more is likely to be needed in the months ahead. It’s vitally important that policymakers act as rapidly as they possibly can. 16/
Check back here and with @CenterOnBudget in coming days and weeks as we continue to work on how to address the crisis, including a major report on these issues we’ll issue tomorrow. 17/ 17
