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Administration, congressional negotiators near deal on coronavirus economic relief package Administration, congressional negotiators near deal on coronavirus economic relief package
(about 4 hours later)
The House prepared to vote Friday on a bipartisan economic relief package to help people impacted by the coronavirus. With both sides under enormous pressure to act to address the spiraling crisis, House Democrats were ready to move forward pending final sign-off from the Trump administration. . The Trump administration and House Democrats appeared to have clinched a deal on a coronavirus rescue package Friday, but top Democrats signaled they were unsure if Republicans would come on board, creating uncertainty over the outcome.
Addressing reporters Thursday night after a day of intense negotiations with Treasury Secretary Steven Mnuchin, Speaker Nancy Pelosi (D-Calif.) said she expected a vote Friday ”one way or another” to approve the package, which is expected to amount to several tens of billions of dollars. House Minority Leader Kevin McCarthy (R-Calif.) was at the White House Friday morning to discuss the matter, according to two officials with knowledge of the visit, who spoke on condition of anonymity to disclose it. President Trump announced he would be holding a mid-afternoon news conference on the coronavirus.
“We’ve resolved most of our differences, and those we haven’t we’ll continue to have a conversation — because there will obviously be other bills,” Pelosi said. House Democrats hoped to press forward with a vote Friday on the deal negotiated between Speaker Nancy Pelosi (D-Calif.) and Treasury Secretary Steven Mnuchin. With both sides under enormous pressure to act to address the spiraling crisis, the legislation includes provisions to boost sick leave, unemployment insurance, and food security programs like food stamps.
The legislation will include measures to boost paid family leave and unemployment insurance, ensure free coronavirus testing, and strengthen nutritional aid like food stamps. The emerging agreement builds upon a bill House Democrats released late Wednesday that included a number of provisions Republicans opposed, setting off hours of frenzied negotiations on Capitol Hill to reach bipartisan consensus. “I think we’re very close to getting this done,” Mnuchin said Friday morning on CNBC. “The president is absolutely committed that this will be an entire government effort.”
Lawmakers of both parties were determined to deliver an economic relief package before a congressional recess that had been scheduled for next week. “Let’s try to accomplish something that we can agree on and get it done,” said Sen. Rob Portman (R-Ohio), summing up the sentiments of many. "We're at a place where we need to act," said House Democratic Caucus Chairman Hakeem Jeffries (D-N.Y.).
A final hang-up was over a paid family and medical leave provision, with Republicans pushing to structure it in a way that it could be implemented quickly and avoid undue burdens on employers. By Friday morning that issue was resolved. But House Republicans appeared uneasy about some provisions in the package, which expands federal spending on Medicaid and provides for federal reimbursement for paid sick leave as well as family and medical leave.
“There were some differences of opinion, but we felt that putting together something that the American people could see cooperation on between the two parties in this difficult moment, would be a confidence builder,” said House Ways and Means Chairman Richard E. Neal (D-Mass.). “And I think that we approached it that way.” House GOP leaders were not involved in the negotiations and their offices were silent Friday morning on the state of play. McCarthy’s unannounced visit to the White House suggested eleventh-hour efforts to reach an accord.
While House approval of the package was expected on Friday, clearing lawmakers to begin a secheduled recess, the Senate is not expected to take it up until next week. Majority Leader Mitch McConnell (R-Ky.) canceled his chamber’s planned recess next week but allowed senators to leave Washington for the weekend. Rank-and-file House Republicans were in the dark, and had just gotten text of the deal late Friday morning.
As originally introduced, the House bill included a $2 billion boost to state unemployment insurance programs, more than $1 billion in nutritional aid, a new paid-leave benefit for employees affected by the outbreak and an increase in federal Medicaid spending, as well as a guarantee of free coronavirus testing. Republicans viewed the initial legislation as overly broad, and President Trump criticized it as full of “the goodies that they haven’t been able to get for the last 25 years.” “I’m not gonna vote for something just because we need to vote for a coronavirus bill,” said Rep. Bradley Byrne (R-Ala.). “If it’s got things in there I don’t think are appropriate, I’ll vote against it. But I gotta read it, see what it is.”
Through hours of phone calls and staff-level negotiations, Pelosi and Mnuchin agreed to narrow the legislation to focus more squarely on impacts from the coronavirus and those hurt by it. The final legislative text was still being reviewed, but Pelosi saidthat Mnuchin’s suggestions had been “all very reasonable.” Rep. Buddy Carter (R-Ga.), a deputy whip, told reporters: "At this point I just don't know." "I suspect for a lot of Republican members its going to be very important" to have Trump’s blessing, Carter said.
The deal being teed up for passage Friday represented a dramatic turn-around from the state of play Thursday morning, when the White House and congressional Republicans panned House Democrats’ bill and suggested that chances for a quick deal were remote. Text of the legislation had not been publicly released Friday amid the uncertainty. Democrats had been prepared to move forward to a vote with or without GOP support, and they could pass the legislation on their own. But if the bill lacks GOP support in the House, and does not have the full backing of the administration, its passage could be imperiled in the Senate.
But as the hours progressed and the scale of the crisis mounted, it became clear there was no appetite among lawmakers to leave Washington for a week or more without acting. Rep. Cheri Bustos (D-Ill.), exiting a leadership meeting in Pelosi’s office, said that the last issue was support from House Republicans.
Only last week Congress passed an $8.3 billion emergency spending plan to address public health needs arising from the crisis. But with the stock market plunging, lay-offs beginning, schools around the country shutting down, and entire sports leagues shuttering their seasons, the need for a robust economic response became glaring. Lawmakers watched as the Dow Jones industrial average suffered its largest one-day point loss in history, dropping more than 2,000 points. “We have a bill we know that will pass. We have enough Democrats to pass it. I hope that they’ll get on board with us,” Bustos said.
“As the day wore on it became an unteanable position for Republicans not to take the lifelline we were giving them, and so I think there was a real effort to get a deal done,” said a House Democratic aide involved in the talks, speaking on condition of anonymity to discuss the private negotiations. The Senate had been expected to take up the legislation next week, after Senate Majority Leader Mitch McConnell (R-Ky.) canceled a recesss planned for next week so his members could act on a coronavirus package.
Only last week Congress passed an $8.3 billion emergency spending plan to address public health needs arising from the crisis. But with the stock market plunging, lay-offs beginning, schools around the country shutting down, and entire sports leagues shuttering their seasons, the need for a robust economic response became glaring. Lawmakers watched as the Dow Jones industrial average suffered its largest one-day point loss in history, dropping more than 2,000 points, although stocks began to recover on Friday.
There are now well over 1,000 confirmed coronavirus cases in the U.S. and more than three dozen deaths, numbers that are expected to exponentially rise. And increasing numbers of lawmakers are announcing plans to shut down their offices and self-quarantine following brushes with infected individuals.There are now well over 1,000 confirmed coronavirus cases in the U.S. and more than three dozen deaths, numbers that are expected to exponentially rise. And increasing numbers of lawmakers are announcing plans to shut down their offices and self-quarantine following brushes with infected individuals.
“This is such a serious issue,” said Sen. Joni Ernst (R-Iowa), who is up for reelection in November. “We need to be continually monitoring this as a group, not having us all out to the four winds.”
Trump is advancing costly ideas of his own — including a payroll-tax holiday that could drain tens of billions of dollars from Social Security. That idea has gotten limited traction among both parties on Capitol Hill, and congressional leaders decided to pursue a narrower package that could win GOP support, leaving broader measures, such as the payroll-tax cut, for another day.
“Time is of the essence, and this bill must be passed and sent to the Senate,” Pelosi wrote in a letter to fellow Democrats Thursday night. “The House will then get to work on a third emergency response package that will take further effective action that protects the health, economic security and well-being of the American people.”“Time is of the essence, and this bill must be passed and sent to the Senate,” Pelosi wrote in a letter to fellow Democrats Thursday night. “The House will then get to work on a third emergency response package that will take further effective action that protects the health, economic security and well-being of the American people.”
The emerging agreement builds upon a bill House Democrats released late Wednesday that included a number of provisions Republicans opposed, setting off hours of frenzied negotiations on Capitol Hill to reach bipartisan consensus.
A final hang-up was over a paid family and medical leave provision, with Republicans pushing to structure it in a way that it could be implemented quickly and avoid undue burdens on employers. By Friday morning that issue had appeared largely resolved with the administration, but there seemed to be lingering concerns among House Republicans.
A senior administration official, speaking on condition of anonymity Friday to describe internal thinking, said they were at an “uncomfortable moment.”
As originally introduced, the House bill included a $2 billion boost to state unemployment insurance programs, more than $1 billion in nutritional aid, a new paid-leave benefit for employees affected by the outbreak and an increase in federal Medicaid spending, as well as a guarantee of free coronavirus testing. Republicans viewed the initial legislation as overly broad, and Trump criticized it as full of “the goodies that they haven’t been able to get for the last 25 years.”
Through hours of phone calls and staff-level negotiations Thursday, Pelosi and Mnuchin agreed to narrow the legislation to focus more squarely on impacts from the coronavirus and those hurt by it.
Lawmakers of both parties were determined to deliver an economic relief package before leaving for recess. “Let’s try to accomplish something that we can agree on and get it done,” said Sen. Rob Portman (R-Ohio), summing up the sentiments of many.
Trump is advancing costly ideas of his own — including a payroll-tax holiday that could drain tens of billions of dollars from Social Security. That idea has gotten limited traction among both parties on Capitol Hill, and congressional leaders decided to pursue a narrower package that could win GOP support, leaving broader measures, such as the payroll-tax cut, for another day.
House moves toward quick vote on Democratic coronavirus packageHouse moves toward quick vote on Democratic coronavirus package
The White House was also moving to assemble its own relief plan, one that included requests for congressional action as well as administrative actions that the Trump administration could take unilaterally.The White House was also moving to assemble its own relief plan, one that included requests for congressional action as well as administrative actions that the Trump administration could take unilaterally.
White House officials held meetings Thursday to hammer out details of the administration’s economic response package as promised by Trump in his national address Wednesday night, including some kind of paid-sick-leave plan that could be enacted administratively. Critical details remained unresolved, however.White House officials held meetings Thursday to hammer out details of the administration’s economic response package as promised by Trump in his national address Wednesday night, including some kind of paid-sick-leave plan that could be enacted administratively. Critical details remained unresolved, however.
Besieged Trump announces Europe travel ban in effort to stem coronavirus pandemicBesieged Trump announces Europe travel ban in effort to stem coronavirus pandemic
As originally written, the House paid-leave plan relied on a two-pronged approach, combining a temporary program that would be administered by the Social Security Administration that would provide up to $4,000 a month to affected households, with a new permanent sick-leave mandate for U.S. employers. Only firms employing fewer than 50 people would be eligible for federal assistance in meeting that mandate, which was strongly opposed by the administration.As originally written, the House paid-leave plan relied on a two-pronged approach, combining a temporary program that would be administered by the Social Security Administration that would provide up to $4,000 a month to affected households, with a new permanent sick-leave mandate for U.S. employers. Only firms employing fewer than 50 people would be eligible for federal assistance in meeting that mandate, which was strongly opposed by the administration.
Those plans underwent significant changes over the day of talks, and in the final hours negotiators were haggling over a less ambitious family and medical leave expansion proposal from Rep. Robert C. “Bobby” Scott (D-Va.), which would expand the number of workers who can take up to 12 weeks of job-protected leave under the Family and Medical Leave Act while drawing down wage replacement. Employees would get two-thirds of their salary replaced up to $4,000 a month, and employees would be reimbuirsed by the federal government. Separately, employees would also be able to take 14 days of paid sick leave, with the government reimbursing employers for part of the cost.Those plans underwent significant changes over the day of talks, and in the final hours negotiators were haggling over a less ambitious family and medical leave expansion proposal from Rep. Robert C. “Bobby” Scott (D-Va.), which would expand the number of workers who can take up to 12 weeks of job-protected leave under the Family and Medical Leave Act while drawing down wage replacement. Employees would get two-thirds of their salary replaced up to $4,000 a month, and employees would be reimbuirsed by the federal government. Separately, employees would also be able to take 14 days of paid sick leave, with the government reimbursing employers for part of the cost.
“It’s about paid sick leave. It’s about family and medical leave. It’s about unemployment insurance. It’s about our children who are out of school and need to be fed. It’s about seniors and peopel with disabilities,” Pelosi said. “This goes to the actual heart of what our purpose is.”“It’s about paid sick leave. It’s about family and medical leave. It’s about unemployment insurance. It’s about our children who are out of school and need to be fed. It’s about seniors and peopel with disabilities,” Pelosi said. “This goes to the actual heart of what our purpose is.”
Another controversial provision in the original bill would have increased the percentage of Medicaid spending borne by the federal government by 8 percentage points through Sept. 30, 2021. That would be a welcome relief to states, which could see an influx of Medicaid enrollees in a time of economic crisis. But the price tag for the federal government could have been vast — stretching easily into the tens of billions of dollars.Another controversial provision in the original bill would have increased the percentage of Medicaid spending borne by the federal government by 8 percentage points through Sept. 30, 2021. That would be a welcome relief to states, which could see an influx of Medicaid enrollees in a time of economic crisis. But the price tag for the federal government could have been vast — stretching easily into the tens of billions of dollars.
Seung Min Kim and Paul Kane contributed to this report.Seung Min Kim and Paul Kane contributed to this report.
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