Alexandria Ocasio-Cortez says Democrats should look past the 'sugar high' of another $1,200 stimulus check — and urges them to hold out for a bigger package that includes state aid and health funding

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Alexandria Ocasio-Cortez says Democrats should look past the 'sugar high' of another $1,200 stimulus check — and urges them to hold out for a bigger package that includes state aid and health funding
REUTERS/Erin Scott
  • Rep. Alexandria Ocasio-Cortez of New York said Democrats should continue holding out for a sizable coronavirus relief deal.
  • "That $1,200 is a nice little sugar high, and I support giving another stimulus check, but a second check in and of itself alone — if we're not going to support state and local funding, if it's not going to include significant investments in testing, tracing capacity and infrastructure — all it is is a little sugar high," she told Politico.
  • Her comments channeled the mounting anxiety among many House Democrats about the lack of an economic aid package.
  • Democrats have insisted on at least $2.2 trillion in new spending, an amount the White House rejected last month during negotiations that ultimately went nowhere.
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Democratic Rep. Alexandria Ocasio-Cortez urged members of her own party to hold out for a bigger coronavirus relief package that includes their key priorities like a second stimulus check, state aid, and health funding.

In a Politico interview, the New York congresswoman said it would take a large stimulus plan to confront the twin economic and health crises stemming from the pandemic.

"This administration, it seems what they want to do is cut another $1,200 check, but they don't want to actually provide state and local [aid]," Ocasio-Cortez said. "That $1,200 is a nice little sugar high, and I support giving another stimulus check, but a second check in and of itself alone — if we're not going to support state and local funding, if it's not going to include significant investments in testing, tracing capacity and infrastructure — all it is is a little sugar high."

She added that "it's not going to solve the critical issues of the pandemic."

Ocasio-Cortez's comments reflect the growing anxiety among many Democratic lawmakers about the lack of progress on a fifth stimulus package. An increasing number of House Democrats have urged Speaker Nancy Pelosi to roll out another plan separate from the $3.4 trillion spending measure they approved in May.

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The mounting frustration in both parties prompted a group of 50 bipartisan House lawmakers to introduce another $1.5 trillion spending plan that included another round of stimulus checks, state aid, and federal unemployment benefits. But top Democrats said it was inadequate, further shrinking the prospect of a deal before Election Day.

Read more: Morgan Stanley says the stock market's future is 'unusually dependent' on another stimulus package — and recommends 5 portfolio moves to make if Congress passes another round

Senior Democratic lawmakers told their caucus on Tuesday that they would be kept on standby in case a deal is struck after they head back to their districts on October 2, the start of the recess.

Republicans have called for designing and implementing a "targeted" proposal that's much smaller than what Democrats are seeking. Democrats have insisted on at least $2.2 trillion in additional government spending on state aid, stimulus checks, and health funding.

The GOP recently unveiled another plan with roughly $300 billion in new spending that Democrats blocked on Thursday, assailing it as "emaciated."

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The Trump administration has not appeared to insist on swift action to prop up the economy. During an ABC News town-hall event on Tuesday evening, President Donald Trump said he would seek a compromise with Democrats "at the right time."

Talks between the White House and congressional Democrats collapsed in August amid fierce disagreements on federal spending levels and competing priorities. Much of the conflict centered on state aid and unemployment benefits.

Meanwhile, critical components of the package that Congress approved in March expired over the summer.

Nearly 30 million Americans are drawing some form of unemployment benefits. A federal program that the Trump administration put in place with executive action early last month is already exhausted of funding, with states capped at providing only six weeks of new jobless payouts.

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