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Americans Struggle as Congress Stalemates on More COVID Relief

Matt Haines

   NEW ORLEANS, LOUISIANA - An iconic New Orleans eatery, K-Paul's
   Louisiana Kitchen, is no more, one of countless economic casualties of
   a pandemic that has flattened businesses across America.

   "We hung on as long as we could," co-owner Brenda Prudhomme told VOA,
   "but we had no choice but to shut down."

   Closing K-Paul's was no easy choice. The restaurant had been a local
   favorite in the heart of the city's legendary French Quarter since her
   aunt and uncle opened its doors 40 years ago. Her uncle was Paul
   Prudhomme, a nationally recognized celebrity chef credited with
   popularizing Creole and Cajun cuisines through his best-selling
   cookbooks and beloved television shows.

   "K-Paul's means so much to us, and to the customers who have been
   dining here for decades," Prudhomme said. "But when something like a
   global pandemic happens and the government doesn't do enough to help
   small businesses, we're only left with horrible choices."

   Months of negotiations in Congress have stalemated on a new round of
   economic stimulus that would provide additional relief to struggling
   Americans. The most recent attempt failed in the Senate earlier this
   month as Democrats pushed for more expansive benefits while Republicans
   sought a more limited package. Both sides have blamed each other for
   the impasse. Many view Congress as unlikely to pass anything before the
   November election.

   Congress' inability to forge an agreement is having far-reaching
   consequences for tens of millions of Americans who received federal
   help earlier this year that has run out.

   Round 1 not enough

   When the coronavirus pandemic took hold in the United States in
   February and March, the nation's economy appeared headed toward an
   unprecedented collapse. By April, the U.S. unemployment rate had
   reached 14.7%, the highest rate since the Great Depression.

   In late March, Congress passed the $2.2 trillion Coronavirus Aid,
   Relief, and Economic Security Act, also known as the CARES Act. The
   massive expenditure provided a substantial financial boost for many
   struggling Americans, including a $600 weekly supplement of
   unemployment benefits and one-time stimulus checks of up to $1,200 for
   middle- and lower-income earners.

   Those payments ceased in July, severing an important economic lifeline
   for New Orleans, where the hospitality and tourism industries, both hit
   hard by the pandemic, employ about 20% of the local workforce.

   Kevin Caldwell found that initial infusion of revenue a lifesaver for
   his family. Before COVID-19, he bartended at a popular music club while
   his wife worked at a well-known restaurant.

   "I've been in the service industry for decades," Caldwell said, "and I
   know live music is going to be one of the last things allowed back at
   the end of this crisis. It's beyond our control, so we just have to
   wait and hope we get some support."

   In the first few months of the pandemic, Caldwell said he and his wife
   were both receiving $847 in unemployment insurance per week thanks to
   the CARES Act. When the supplement expired, their weekly unemployment
   insurance checks dropped to $247.

   "We're not in a personal crisis yet, but we're getting close," Caldwell
   said. "Pretty soon we're not going to be able to afford our health
   insurance, and that's not ideal during a pandemic."

   Waiting for Round 2

   The CARES Act wasn't meant to help only struggling individuals.
   Initiatives like the Paycheck Protection Program (PPP) and the Economic
   Injury Disaster Loans (EIDL) were funded to assist businesses affected
   by the pandemic by helping them retain and pay employees, and to
   survive revenue losses.

   Businesses that qualified for a PPP loan, for example, were awarded
   enough funding to pay their workforce their salary for about 10 weeks.
   Many economists believe it could be 2022 or even 2023 before the U.S.
   economy fully recovers.

   "We received help from those programs," Prudhomme said, "but it's
   really just a shot in the arm. Spring revenue is huge in New Orleans,
   because the summers get pretty dead here. Now we lost spring, summer
   and were going to miss the fall, too. The funding we got wasn't enough
   to sustain us. We were hoping for a second round, but it never came."

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