2nd round of stimulus checks: leaders struggle to finalize COVID-19 relief deal

WASHINGTON – It’s a rushed and waiting time on Capitol Hill as congressional negotiators on a choke point, nearly $ 1 trillion in COVID-19 economic relief battled a handful of remaining issues. The lockdowns mean that a weekend session now seems virtually certain, and a high-level lawmaker has warned that a government shutdown this weekend cannot be ruled out.

All parties appeared to be hopeful the bickering wouldn’t derail the legislation, even as the odds of announcing a deal on Thursday have slipped away. After getting bogged down for much of the day, negotiators reported behind-the-scenes progress on Thursday night.

The core elements of a fierce compromise have emerged in place: over $ 300 billion in business aid; a federal unemployment premium of $ 300 per week and the renewal of state benefits which will expire soon; $ 600 in direct payments to individuals; vaccine distribution fund and cash for tenants, schools, postal service and people in need of food assistance.

But a temporary funding bill expires at midnight Friday, and Senate Republican No. 2 Senator John Thune has said if there is no deal by then some Republicans may block a temporary funding bill – causing a low impact partial shutdown on weekends – as a way to keep the pressure on.

SEE ALSO: White House Offer Adds $ 600 Checks to COVID-19 Relief

Lawmakers have been told to expect to be in session and vote this weekend.

“We must not slip into treating these discussions as routine negotiations to be carried out at the routine pace of Congress,” Senate Majority Leader Mitch McConnell, R-Ky, said. “The Senate is not going anywhere until we receive COVID relief.”

The lockdowns involved an effort by GOP conservatives to curb the Treasury Department and Federal Reserve emergency loan programs, a Democratic demand to eliminate local government matching requirements for grants in the event of COVID-19 disaster and a myriad of small disagreements over non-pandemic supplements. , said lawmakers and aides.

Delays were not unusual for legislation of this size and importance, but lawmakers are eager to leave Washington for the holidays and are anxious.

The pending bill is the first major legislative response to the pandemic since the landmark CARES law was passed virtually unanimously in March, providing $ 1.8 trillion in aid and more than $ 600 a week , jobless benefits and $ 1,200 in direct payments to individuals.

The CARES legislation was passed at a time of great uncertainty and unprecedented closures in an unsuccessful attempt to thwart the coronavirus, but after that, many Republicans became more focused on easing social and economic restrictions as a key to the recovery rather than more taxpayer-funded aid.

Now, Republicans are primarily motivated to expand business grants and some unemployment benefits, and to provide money for schools and vaccines. Democrats have focused on bigger economic stimulus and more aid for those struggling economically during the pandemic. The urgency was underscored Thursday by weekly unemployment figures, which revealed 885,000 people applied for unemployment benefits last week, the highest weekly total since September.

The emerging package is well short of the more than $ 2 trillion Democrats demanded this fall ahead of the election, but President-elect Joe Biden is eager to receive an aid package to support the economy and help the unemployed and the unemployed. hungry. While Biden says more economic stimulus will be needed early next year, some Republicans say the current package may be the last.

“If we meet critical needs now, and things get better next year with the vaccine coming in and the economy picking up, you know the needs may be less,” said Money.

MORE: 10,000 restaurants set to close in next 3 weeks due to COVID-19

Details were still being worked out, but the measure includes a second round of “paycheck protection” payments to particularly affected businesses, $ 25 billion to help troubled tenants with their payments, $ 45 billion. dollars for airlines and transit systems, 15% temporary. or increased food stamp benefits, additional farm subsidies and a $ 10 billion postal service bailout.

Some Democrats have also lamented the exclusion of a $ 500 million aid package to help states run their elections. Money was seen as urgent this summer to help states run their elections more securely amid the pandemic. But with the election over, the momentum for money has vanished.

The emerging offer served as a magnet to add more items, and the two sides continued to exchange offers. It was obvious that another temporary spending bill would be needed to prevent the government shutting down. It was probably going to pass easily, but maybe not until the last minute.

The emerging package would combine the $ 900 billion in COVID-19 relief with a government-wide funding bill of $ 1.4 trillion. Then there are plenty of indie add-ons that catch a ride known as “ash and trash” in the credit panel shorthand.

One of the main contenders is a nearly 400-page water resources bill that targets $ 10 billion for 46 flood control, environment and coastal protection projects from the Corps of Engineers of the Land Force. Another potential addition would extend a bundle of tax breaks that will soon expire, including one for craft brewers, wineries and distillers.

The end-of-session rush also promises relief for victims of shocking surprise medical bills, a phenomenon that often occurs when providers leave insurance company networks.

“It has been very carefully vetted,” Sen. Lamar Alexander, R-Tenn., Retired, said of the surprise medical billing measure. This measure, combined with an assortment of other health policy provisions, generates savings for federal funding of community health centers.

A major breakthrough came earlier this week when Democrats agreed to abandon their much-needed $ 160 billion state and local government aid package in exchange for McConnell’s abandonment of a key priority – a liability shield for companies and other institutions like universities fearing COVID-19 lawsuits.

The addition of the $ 600 direct payments came after recent endorsements from President Donald Trump and progressives like Sen. Bernie Sanders, I-Vt., And Rep. Alexandra Ocasio-Cortez, DN.Y., as well as the ambitious GOP Senator Josh Hawley. from Missouri. The idea is not very popular in other corners as it is extremely expensive and would give money to millions of people who may not need it, but it has huge political appeal and s proved difficult to stop.