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Senators Edge Closer to Bipartisan Agreement on Economic Rescue Plan Senators Edge Closer to Bipartisan Agreement on Economic Rescue Plan
(about 3 hours later)
WASHINGTON — Senators were hashing out the framework of a bipartisan deal on Friday on a sweeping $1 trillion economic stabilization package to respond to the coronavirus pandemic, as lawmakers and President Trump’s top advisers raced to work through differences and strike crucial compromises on legislation that could be enacted within days. 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 were close to agreement Friday evening on providing expanded unemployment benefits for workers affected by the virus, including self-employed workers and people whose hours have been reduced as large parts of the economy shut down to slow the disease’s spread. 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.
A person familiar with the agreement, speaking on condition of anonymity because it was not yet final, said the benefits would come close to covering the full lost wages for a typical worker. Negotiations remained fluid into Friday evening, and the person cautioned that final terms had not yet been agreed on. 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.
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 near agreement on providing assistance for state and local governments that are set to lose tax revenues amid the crisis. 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.
Senator Mitch McConnell, Republican of Kentucky and the majority leader, said he hoped to strike a deal in principle by midnight on Friday, an ambitious goal given the wide divergence between the two parties over how to structure a government rescue package unlike anything Congress has previously contemplated. “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.”
While there is widespread agreement on the need for the package, Republicans and Democrats began negotiations Friday divided over the details, including which Americans should receive direct payments from the government and how they should receive it, how much paid leave employers should have to cover for workers, and what form of assistance to provide to small and large businesses. 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.
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 minority 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 minority 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 an extraordinary set of 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 an extraordinary set of 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 smooth over divides among themselves over how to deliver aid to families and businesses quickly and fairly. Lawmakers, emerging briefly from ongoing negotiations over the course of 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 smooth over divides among themselves over how to deliver aid to families and businesses quickly and fairly. Lawmakers, emerging briefly from ongoing negotiations over the course of 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 President Trump on Friday to discuss the details of the package, including an idea Senate Democrats are 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 President Trump on Friday to discuss the details of the package, including an idea Senate Democrats are 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, 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, 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 who 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 who 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 virus. 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 virus. 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. Mr. McConnell began laying the groundwork for a vote on the Senate floor by Monday, moving on Friday afternoon to clear procedural hurdles with an eye toward finalizing the text of measure over the weekend. Afterward, the senators divided into smaller bipartisan groups to hash out disagreements over specific subjects with administration officials present.
“We’re very comfortable with this goal,” said Eric Ueland, the White House director of legislative affairs, who attended the meeting. “The need for urgency has been pressed repeatedly by the president and the secretary, and we’re going to work very hard to be incredibly nimble, quite quick, so that we’re in a position for results and relief to be delivered to the American people as fast as possible.” “They’re making progress, but there’s so much to do — I think tonight is hard,” Mr. Schumer told reporters Friday evening. “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, remarked: “The children are playing well with each other. “Mr. Kudlow, asked to assess how negotiations were progressing, remarked: “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 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 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 to weigh in through Mr. Schumer’s aides on key provisions 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 to weigh in through Mr. Schumer’s aides on key provisions 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.”
The package under discussion 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 last week to provide paid leave, jobless aid and food and health care assistance. Mr. Trump has signed both bills into law.The package under discussion 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 last week to provide paid leave, jobless aid and food and health care assistance. Mr. Trump has signed both bills into law.
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.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 toward the lowest earners — not the other way around. Senator Lindsey Graham, Republican of South Carolina and a close ally of Mr. Trump, 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 toward the lowest earners — not the other way around. Senator Lindsey Graham, Republican of South Carolina and a close ally of Mr. Trump, 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 asked for anonymity to disclose ongoing discussions.Republicans had resisted a Democratic proposal to establish a state stabilization fund to address revenue shortfalls, according to a senior Democratic aide who asked for anonymity to disclose ongoing 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 shut the Capitol and leave Washington after two members of the House tested positive for Covid-19, the illness caused by the virus. 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 shut the Capitol and leave Washington after two members of the House tested positive for Covid-19, the illness caused by the virus. 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.