US COVID-19 unemployment payments were too large, White House says

The US Administration and the Republican senators believe that the measure package for stimulation of economy amid the coronavirus pandemic, adopted in March, implied too large payments to the people, and that was taken into account in the new plan, White House Chief of Staff Mark Meadows said Sunday.

"The original unemployment benefits actually paid people to stay home, and actually a lot of people got more money staying at home than they would go back to work," Meadows said. "The president has been very clear, our Republican senators have been very clear, we aren't going to extend that provision."

In late March, US President Donald Trump signed a bill on economy stimulation measures worth over $2 billion, aimed at mitigation of consequences of the coronavirus spread. This initiative involved single payment of about $1,200 per person. Besides, additional funding was provided that allowed the states to increase the weekly unemployment benefits by $600. The current measure package expires in late July. The Republicans are expected to provide a new plan, negotiated with the Trump Administration, on Monday.

According to Meadows, the US Administration decided that the $600 weekly boost to the unemployment payments is inappropriate. Instead, under the new plan, the Americans will be paid about 70% of what they received prior to getting unemployed due to the pandemic/

White House Economic Advisor Larry Kudlow said in an interview for CNN that too large payments obstruct restoration of the business.

"We have had a flood of inquiries and phone calls and complaints that small stores and businesses, restaurants can't hire people back," Kudlow said.

"Maybe last March it was necessary for that, but really the consequence of people not returning to work," he noted. "we want to pay folks to go back to work."

According to Kudlow, the new plan will include a single-time payment of $1,200 and a number of other measures.

On Sunday, US Secretary of the Treasury announced that the Republicans will present its new package of measures worth approximately $1 trillion Monday. He noted that the views of the Administration and the Senate on this initiative coincide completely.

He noted that some debatable issues must be negotiated with the Democrats.