White House economic adviser says additional coronavirus stimulus package might not be necessary

Congress has already passed trillions of dollars in unprecedented legislative relief in response to the pandemic, but the scale of the devastation that the crisis has inflicted has led lawmakers to consider another round of aid. Several states have started lifting their stay-at-home orders and reopening their economies, despite health experts advising otherwise and testing not yet being readily available.

Negotiations are underway over a fourth stimulus package — or “phase four” of the coronavirus response — and Congressional Democratic leaders have made clear that a top priority for them is funding for states and localities.

He argued that Republicans are in a much better negotiating position on funding for states, and if they agree to it, Republicans “have to get something for it.”

On Saturday, Hassett said that aid to states “will be a political issue that will be worked out” between Republicans and Democrats on Capitol Hill. He added that Trump “is absolutely opposed to bailouts.”

On prospects of the US economy reopening, Hassett predicted that “almost every state will be mostly open economically” likely by the end of May.

Hassett said that unemployment might reach 19% and GDP loss for the second quarter could be as high as 40%.

Republicans have stipulated that more money for states must come along with liability protections for businesses and health care professionals from potential lawsuits.