Coronavirus: Why lawmakers can’t agree on an economic rescue package amid pandemic
WASHINGTON – Congressional negotiations over a massive economic rescue package hit a snag on Sunday, as Republicans and Democrats sparred over how best to help laid-off workers and shuttered businesses reeling amid the coronavirus pandemic.
“No deal,” House Speaker Nancy Pelosi, D-Calif., told reporters after meeting with Senate Majority Leader Mitch McConnell, R-Ky., and others on Capitol Hill.
“It’s just about time to take ‘yes’ for an answer,” McConnell shot back. “The American people need an outcome and they need it tomorrow.”
Lawmakers are acutely aware that when financial markets open on Monday morning, Wall Street traders will be looking to Washington for signs of bipartisanship and comity as the country hurtles toward a possible recession. They may also be worried about their ability to stay in session, with three members of Congress now infected with COVID-19 and several others in self-quarantine after possible exposure to the virus.
Although the bill is still being drafted, McConnell and Senate Republicans are hoping to push ahead with a $1-trillion-plus bill that would provide direct payments of $1,200 to most individuals and billions of dollars in aid to small and big businesses that have suffered amid the COVID-19 pandemic.
Pelosi and House Democrats are planning to introduce a competing proposal that would address what they say are serious shortcomings with the GOP plan.
The two sides continued haggling in private Sunday afternoon, after the public finger-pointing.
Here’s what we know about the main sticking points:
Bailouts for businesses
Both sides seem to agree that small and big businesses need a lifeline. Democrats want tough provisions to prevent corporations that receive federal bailouts from later engaging in stock buybacks that enrich their executives.
President Donald Trump has expressed support for that approach, and McConnell said his bill already includes Democrats’ demands for conditions on loans and other aide to major businesses.
But Democrats say the GOP measures are “weak” and could be waived by Treasury Secretary Steven Mnuchin. They also want limits on executive compensation and assurances that any bailouts will help workers, according to a senior Democratic aide who briefed reporters on the condition of anonymity.
Assistance for individuals and families
Democrats have called for provisions that would temporarily block evictions and foreclosures. They also want additional funding for food stamps and an expansion of unemployment benefits.
The GOP proposal currently allows for a three-month expansion of unemployment benefits, and McConnell said the measure provides adequate help for families facing financial distress.
“It puts urgently needed cash in the hands of American workers and families,” McConnell said Sunday of his proposal.
Help for states and hospitals
McConnell said the GOP bill includes $75 billion in a new fund for hospitals and health providers. In all, he said, nearly $200 billion will go to help state and local governments deal with the crisis.
Democrats dispute that, saying the legislation doesn’t include any new money for states and local governments.