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Senators Edge Closer to Bipartisan Agreement on Economic Rescue Plan Senators Edge Closer to Bipartisan Agreement on Economic Rescue Plan
(5 days later)
WASHINGTON — Senators plan to work through the weekend hashing out a bipartisan deal on a sweeping $1 trillion economic stabilization package that could be enacted within days to respond to the coronavirus pandemic.WASHINGTON — Senators plan to work through the weekend hashing out a bipartisan deal on a sweeping $1 trillion economic stabilization package that could be enacted within days to respond to the coronavirus pandemic.
Democratic and Republican negotiators, who huddled with top administration officials throughout the day and into the evening Friday, said they had made significant progress on a number of issues. After nearly 12 hours, they fell short of the ambitious goal set by Senator Mitch McConnell, Republican of Kentucky and the majority leader, who had pushed to strike a deal in principle by midnight Friday.Democratic and Republican negotiators, who huddled with top administration officials throughout the day and into the evening Friday, said they had made significant progress on a number of issues. After nearly 12 hours, they fell short of the ambitious goal set by Senator Mitch McConnell, Republican of Kentucky and the majority leader, who had pushed to strike a deal in principle by midnight Friday.
Mr. McConnell has begun clearing procedural hurdles on the Senate floor in order to vote on the Senate package on Monday, leaving senators and President Trump’s top economic advisers until Saturday afternoon to draft legislative text, said Eric Ueland, the White House director of legislative affairs.Mr. McConnell has begun clearing procedural hurdles on the Senate floor in order to vote on the Senate package on Monday, leaving senators and President Trump’s top economic advisers until Saturday afternoon to draft legislative text, said Eric Ueland, the White House director of legislative affairs.
Senators will reconvene Saturday morning, negotiators said. Mr. Ueland said that there was “a lot of near consensus” on how to provide aid to industries seeking relief from the effects of the pandemic, how to assist small businesses, how to bolster health care facilities and how to send direct aid to the American people.Senators will reconvene Saturday morning, negotiators said. Mr. Ueland said that there was “a lot of near consensus” on how to provide aid to industries seeking relief from the effects of the pandemic, how to assist small businesses, how to bolster health care facilities and how to send direct aid to the American people.
“There are just a number of balls still in the air,” said Senator Ron Wyden, Democrat of Oregon, as he left Friday evening, adding that both sides “have some issues that are important priorities, and it takes some time to check.”“There are just a number of balls still in the air,” said Senator Ron Wyden, Democrat of Oregon, as he left Friday evening, adding that both sides “have some issues that are important priorities, and it takes some time to check.”
Democratic and Republican negotiators also seemed close to an agreement on Friday evening on providing expanded unemployment benefits for workers affected by the coronavirus — one of the major sticking points in the legislation — including those who are self-employed and people whose hours have been reduced as large parts of the economy shut down to slow the spread.Democratic and Republican negotiators also seemed close to an agreement on Friday evening on providing expanded unemployment benefits for workers affected by the coronavirus — one of the major sticking points in the legislation — including those who are self-employed and people whose hours have been reduced as large parts of the economy shut down to slow the spread.
Democrats were prepared to drop their opposition to several large corporate tax cuts as part of the compromise. And Republicans were ready to agree to a direct payment that would apply equally to workers with incomes up to $75,000 per year before phasing out and ending altogether for those earning more than $99,000. The two sides were also working to reach an agreement on a proposal to allocate stabilization funds for states.Democrats were prepared to drop their opposition to several large corporate tax cuts as part of the compromise. And Republicans were ready to agree to a direct payment that would apply equally to workers with incomes up to $75,000 per year before phasing out and ending altogether for those earning more than $99,000. The two sides were also working to reach an agreement on a proposal to allocate stabilization funds for states.
While there is widespread agreement on the need for the package, Republicans and Democrats began negotiations on Friday divided over the details of how to structure an unprecedented government rescue package. Negotiators were debating which Americans should receive direct payments from the government and how they should receive them, how much paid leave employers should have to cover for workers and what form of assistance to provide to small and large businesses.While there is widespread agreement on the need for the package, Republicans and Democrats began negotiations on Friday divided over the details of how to structure an unprecedented government rescue package. Negotiators were debating which Americans should receive direct payments from the government and how they should receive them, how much paid leave employers should have to cover for workers and what form of assistance to provide to small and large businesses.
“Senator McConnell’s bill is not pro-worker at all — it puts corporations ahead of people,” Senator Chuck Schumer of New York, the Democratic leader, said early in the day. “Democrats have a good plan that puts people and workers first.”“Senator McConnell’s bill is not pro-worker at all — it puts corporations ahead of people,” Senator Chuck Schumer of New York, the Democratic leader, said early in the day. “Democrats have a good plan that puts people and workers first.”
But as the talks unfolded — both in a marathon set of meetings on Capitol Hill and in a series of telephone calls between the White House and congressional leaders — all sides appeared optimistic about reaching a swift agreement in the face of extraordinary circumstances.But as the talks unfolded — both in a marathon set of meetings on Capitol Hill and in a series of telephone calls between the White House and congressional leaders — all sides appeared optimistic about reaching a swift agreement in the face of extraordinary circumstances.
“The nation’s needs and expectations are perfectly clear,” Mr. McConnell said. “Workers, families, small businesses and the foundations of our economy itself need swift action and in the Senate, swift means bipartisan.”“The nation’s needs and expectations are perfectly clear,” Mr. McConnell said. “Workers, families, small businesses and the foundations of our economy itself need swift action and in the Senate, swift means bipartisan.”
As negotiations continued into the evening, Mr. Schumer told reporters, “I think tonight is hard.”As negotiations continued into the evening, Mr. Schumer told reporters, “I think tonight is hard.”
Cementing the deal will require both Republicans and Democrats to smooth out divides among themselves over how to deliver aid to families and businesses quickly and fairly. Lawmakers, emerging briefly from the negotiations throughout the day, acknowledged that the pressure to act under remarkable circumstances would help ease the sting of policy disagreements and a price tag that could eclipse the $1 trillion proposed by the administration.Cementing the deal will require both Republicans and Democrats to smooth out divides among themselves over how to deliver aid to families and businesses quickly and fairly. Lawmakers, emerging briefly from the negotiations throughout the day, acknowledged that the pressure to act under remarkable circumstances would help ease the sting of policy disagreements and a price tag that could eclipse the $1 trillion proposed by the administration.
Mr. McConnell introduced a bill on Thursday that would send checks of up to $1,200 to taxpayers who earn up to $99,000; deliver large corporate tax cuts; and put into place loans for businesses and industries. It would also curb an emergency paid leave program enacted this week. But elements of that package are facing opposition from Democrats — and even some Republicans.Mr. McConnell introduced a bill on Thursday that would send checks of up to $1,200 to taxpayers who earn up to $99,000; deliver large corporate tax cuts; and put into place loans for businesses and industries. It would also curb an emergency paid leave program enacted this week. But elements of that package are facing opposition from Democrats — and even some Republicans.
Mr. Schumer spoke twice by phone with Mr. Trump on Friday to discuss the details of the package, including an idea Senate Democrats were calling a “Marshall Plan” to send substantial federal funds to hospitals, particularly small and rural institutions, increasing unemployment insurance and expanding paid leave.Mr. Schumer spoke twice by phone with Mr. Trump on Friday to discuss the details of the package, including an idea Senate Democrats were calling a “Marshall Plan” to send substantial federal funds to hospitals, particularly small and rural institutions, increasing unemployment insurance and expanding paid leave.
At the White House shortly after the calls, Mr. Trump appeared optimistic about the prospects for a quick agreement, saying, “We’re not so far away, we’re not very far away.”At the White House shortly after the calls, Mr. Trump appeared optimistic about the prospects for a quick agreement, saying, “We’re not so far away, we’re not very far away.”
The president, speaking at a news conference, also endorsed the idea of preventing companies that use government aid from buying back shares, saying he discussed the limitations with Mr. Schumer.The president, speaking at a news conference, also endorsed the idea of preventing companies that use government aid from buying back shares, saying he discussed the limitations with Mr. Schumer.
“I don’t want some executive saying we’re going to buy 200,000 shares of stock,” Mr. Trump said. “I want that money to be used for the workers and also for the company to keep the company going.”“I don’t want some executive saying we’re going to buy 200,000 shares of stock,” Mr. Trump said. “I want that money to be used for the workers and also for the company to keep the company going.”
On Capitol Hill, Mr. McConnell and Mr. Schumer met with more than a dozen top Democratic and Republican senators as well as administration officials, led by Steven Mnuchin, the Treasury secretary, and Larry Kudlow, the top White House economic adviser. In a cavernous hearing room across from the Capitol, they sat at long tables several feet apart from one another, in line with public health guidelines that advise social distancing to curb the spread of the coronavirus. At least one negotiator, Senator Sherrod Brown, Democrat of Ohio, went a step further and joined the meeting by phone.On Capitol Hill, Mr. McConnell and Mr. Schumer met with more than a dozen top Democratic and Republican senators as well as administration officials, led by Steven Mnuchin, the Treasury secretary, and Larry Kudlow, the top White House economic adviser. In a cavernous hearing room across from the Capitol, they sat at long tables several feet apart from one another, in line with public health guidelines that advise social distancing to curb the spread of the coronavirus. At least one negotiator, Senator Sherrod Brown, Democrat of Ohio, went a step further and joined the meeting by phone.
Afterward, the senators divided into smaller bipartisan groups to hash out disagreements over specific subjects with administration officials present.Afterward, the senators divided into smaller bipartisan groups to hash out disagreements over specific subjects with administration officials present.
“They’re making progress, but there’s so much to do,” Mr. Schumer told reporters on Friday evening, adding, “There’s still some significant outstanding issues, very significant to our side, that they haven’t agreed to.”“They’re making progress, but there’s so much to do,” Mr. Schumer told reporters on Friday evening, adding, “There’s still some significant outstanding issues, very significant to our side, that they haven’t agreed to.”
Mr. Kudlow, asked to assess how negotiations were progressing, said, “The children are playing well with each other.”Mr. Kudlow, asked to assess how negotiations were progressing, said, “The children are playing well with each other.”
Any legislation would need to win the approval of Democrats in both chambers to be signed into law. Speaker Nancy Pelosi of California was keeping close tabs on the discussions by phone from San Francisco, speaking with Mr. Mnuchin and Mr. Schumer both individually and as a group. The trio spoke for a second time on Friday evening.Any legislation would need to win the approval of Democrats in both chambers to be signed into law. Speaker Nancy Pelosi of California was keeping close tabs on the discussions by phone from San Francisco, speaking with Mr. Mnuchin and Mr. Schumer both individually and as a group. The trio spoke for a second time on Friday evening.
Members of the House remain scattered across the country in their districts, on a recess that is likely to last at least until they take up the economic relief package. But Ms. Pelosi instructed House committee staff members to weigh in through Mr. Schumer’s aides on key provisions that Democrats want to see included in the final legislation, according to a senior Democratic aide.Members of the House remain scattered across the country in their districts, on a recess that is likely to last at least until they take up the economic relief package. But Ms. Pelosi instructed House committee staff members to weigh in through Mr. Schumer’s aides on key provisions that Democrats want to see included in the final legislation, according to a senior Democratic aide.
“We are going to have to flex some muscles that may have atrophied,” Mr. Schumer said in a speech on the Senate floor. “We are going to have to cooperate in ways that we may not be accustomed to.”“We are going to have to flex some muscles that may have atrophied,” Mr. Schumer said in a speech on the Senate floor. “We are going to have to cooperate in ways that we may not be accustomed to.”
Updated July 23, 2020 Updated July 27, 2020
The package under discussion on Friday would be the third round of emergency aid Congress has considered this month to confront the coronavirus crisis. Lawmakers first approved $8.3 billion in emergency funding for government health agencies and then completed a second measure to provide paid leave, jobless aid and food and health care assistance. Mr. Trump has signed both bills into law.The package under discussion on Friday would be the third round of emergency aid Congress has considered this month to confront the coronavirus crisis. Lawmakers first approved $8.3 billion in emergency funding for government health agencies and then completed a second measure to provide paid leave, jobless aid and food and health care assistance. Mr. Trump has signed both bills into law.
The Republicans’ proposal would offer bridge loans of up to $10 million each to small businesses, extend hundreds of billions of dollars in loans to large corporations in distressed industries and send checks as large as $1,200 per adult to individuals earning less than $99,000 a year. Their proposal would phase in the payments for earners up to $75,000 — meaning lower earners would get smaller checks — and then phase out again at $99,000.The Republicans’ proposal would offer bridge loans of up to $10 million each to small businesses, extend hundreds of billions of dollars in loans to large corporations in distressed industries and send checks as large as $1,200 per adult to individuals earning less than $99,000 a year. Their proposal would phase in the payments for earners up to $75,000 — meaning lower earners would get smaller checks — and then phase out again at $99,000.
But the emerging compromise would send the same amount to anyone earning up to $75,000, reducing the payment as income rose and eliminating it entirely for those earning more than $99,000.But the emerging compromise would send the same amount to anyone earning up to $75,000, reducing the payment as income rose and eliminating it entirely for those earning more than $99,000.
Under the Republican bill, those who did not earn enough to pay income tax would receive much less, $600, but those limits were likely to shift as well, with lawmakers in both parties fighting to expand the benefit. Senator Josh Hawley, Republican of Missouri, moved on Friday to try to alter the bill so that low-income individuals and families would get the full benefit.Under the Republican bill, those who did not earn enough to pay income tax would receive much less, $600, but those limits were likely to shift as well, with lawmakers in both parties fighting to expand the benefit. Senator Josh Hawley, Republican of Missouri, moved on Friday to try to alter the bill so that low-income individuals and families would get the full benefit.
Republicans are particularly divided over the direct payment program, with some, including Mr. Hawley, saying it should be targeted toward getting the most money to the lowest earners — not the other way around. Senator Lindsey Graham, Republican of South Carolina and a close ally of Mr. Trump’s, is pushing to distribute the money through unemployment insurance, an idea he has shared with the White House.Republicans are particularly divided over the direct payment program, with some, including Mr. Hawley, saying it should be targeted toward getting the most money to the lowest earners — not the other way around. Senator Lindsey Graham, Republican of South Carolina and a close ally of Mr. Trump’s, is pushing to distribute the money through unemployment insurance, an idea he has shared with the White House.
Some top Democrats also want to use unemployment insurance as the mechanism for providing direct aid, said Senator Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee and one of the senators involved in the talks.Some top Democrats also want to use unemployment insurance as the mechanism for providing direct aid, said Senator Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee and one of the senators involved in the talks.
Republicans had resisted a Democratic proposal to establish a state stabilization fund to address revenue shortfalls, according to a senior Democratic aide, who spoke on the condition of anonymity to disclose continuing discussions.Republicans had resisted a Democratic proposal to establish a state stabilization fund to address revenue shortfalls, according to a senior Democratic aide, who spoke on the condition of anonymity to disclose continuing discussions.
Democrats were vehemently opposed to a provision in the Republicans’ bill that would curtail a paid leave program signed into law this week as part of the second emergency coronavirus relief package.Democrats were vehemently opposed to a provision in the Republicans’ bill that would curtail a paid leave program signed into law this week as part of the second emergency coronavirus relief package.
Lawmakers were racing to complete the package as pressure builds for them to close the Capitol and leave Washington after two members of the House tested positive for Covid-19, the illness caused by the coronavirus. House leaders have reluctantly begun to consider the possibility of instituting remote voting, to adhere to federal guidelines to avoid travel and congregating in large groups.Lawmakers were racing to complete the package as pressure builds for them to close the Capitol and leave Washington after two members of the House tested positive for Covid-19, the illness caused by the coronavirus. House leaders have reluctantly begun to consider the possibility of instituting remote voting, to adhere to federal guidelines to avoid travel and congregating in large groups.
But lawmakers in both chambers have acknowledged that the huge economic stabilization measure — which they are calling Phase 3 — is unlikely to be the last legislation Congress must consider to respond to the pandemic.But lawmakers in both chambers have acknowledged that the huge economic stabilization measure — which they are calling Phase 3 — is unlikely to be the last legislation Congress must consider to respond to the pandemic.
Catie Edmondson contributed reporting.Catie Edmondson contributed reporting.