Senate races to finish negotiations on massive coronavirus stimulus package – POLITICO, Politico

Senate negotiations and the White House on Saturday are scrambling to reach an accord on a stimulus package that’s likely to exceed $ 1 trillion, staring down an aggressive timeline to deliver relief amid the increasing worsening coronavirus outbreak.

Senate Majority Leader Mitch McConnell has set a deadline of Saturday afternoon for both sides to settle on the terms of the legislation, after failing to do so after more hours of talks on Friday, splitting on key issues such as how to get financial help directly to Americans hurt by the crisis .

“We’re getting closer and closer to an agreement,” McConnell told reporters Saturday. “I think we’re clearly going to get there.”

Senate Republicans tried to break the impasse on Saturday morning, delivering their latest bid to Democrats on the biggest remaining sticking point: Unemployment insurance. The two sides huddled separately as Republicans and White House officials await the next steps from Democrats, who are seeking longer-term benefits for furlored workers, rather than direct payments as GOP leaders have pushed.

“I had a very good conversation with [Treasury Secretary Steven] Mnuchin and we are making good progress on many of the issues Democrats care about,” Senate Minority Leader Chuck Schumer (DN.Y.) said Saturday.

Mnuchin declined to comment on the talks, but told reporters that he’s also spoken with President Donald Trump and Vice President Mike Pence, and plans to speak with Speaker Nancy Pelosi later in the day.

Democrats would not disclose details of the GOP’s latest proposal, but said it would get the Senate closer to a deal.

“I would say it’s a pretty good faith offer, but it’s not one that we can finally accept, we have to move it a little more, but we’re pretty close,” Sen. Bob Menendez (D-N.J.), Who is among the negotiators, told reporters.

But the New Jersey Democrat wouldn’t commit to meeting the afternoon deadline to reaching a final agreement and producing legislative text.

“This is going to be the largest – when it’s all connected – relief package in history. So yes, speed is necessary, but getting this done right, so it actually has the effect that we want, is equally important, ”Menendez said.

As negotiations progress, the size and scope of the package appeared to steadily increase. The price tag of the legislation is now expected to exceed $ 1.3 trillion, according to the National Economic Council Director Larry Kudlow. The total size of the package, including loans from the federal government, would likely exceed 21 percent of GDP – roughly $ 2 trillion, he said. That would include a payroll tax holiday for small businesses.

McConnell is pushing hard for a deal, and GOP lawmakers and White House officials warn they will start drafting their own bill if no accord is reached with Democrats by Saturday afternoon. McConnell wants the normally slow-moving Senate to complete work on the rescue package by Monday.

Among the outstanding issues are assistance for hospitals, a “State Stabilization Fund,” which would assist state governments with looming revenue shortfalls during the pandemic, and unemployment insurance. Democrats are pushing for workers to see their full wages compensated, while Republicans argue that the state agencies do not have the capacity to meet this demand.

White House Legislative Affairs Director Eric Ueland said Saturday that there has been a “lot of great.” progress on a bipartisan basis between Republicans and Democrats “but acknowledging the differences on unemployment insurance.

“We’ve discussed some of the technical challenges,” Ueland said. “I’m hopeful we understand more on the unemployment piece today.”

Democrats are also calling for expanded paid sick leave. But so far there does not appear to be much appetite among Republicans for the idea.

The Senate pushed through the House’s package earlier this week which included new paid sick leave provisions. While the Senate approved the measure in a – 8 vote, McConnell had to convince his caucus to support it and vowed to address shortcomings in this new, third stimulus package.

The discussions come after Senate Republicans introduced a $ 1 trillion package Thursday to salvage the economy by providing assistance to individuals, small businesses and industries. Under the GOP proposal, individuals and families would receive $ 1, and $ 2, 400 in direct cash payments based on their income. But some Republicans, including Sens. Josh Hawley (Mo.) and Mitt Romney (Utah), say the proposal’s structure – as written – penalizes lower income Americans who do not have a taxable income. Hawley has an amendment to address the issue and Senate Republican aides appear open to negotiating.

In addition to the direct cash payments, Republicans are pushing for $ billion in federally guaranteed loans to small businesses and $ billion for loans to hard-hit industries . Aides are also discussing adding more money for eligible industries to the package.

Senate Democrats are also calling for a “Marshall Plan” for hospitals to help prepare for a surge in cases due to the pandemic. Schumer and Pelosi (D-Calif.), Who are working in lockstep on the negotiations, argue that the Republican proposal prioritizes businesses over workers.

Republicans and the White House appear open to more hospital assistance.