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Hopes that Congress will act quickly after the election to provide more coronavirus relief to Americans are fading as Senate Republicans continue to resist major spending measures and pressure from President Trump to do so. acts decreased.
This means that with new cases of COVID-19 surpassing 130,000 nationwide every day, families and businesses are unlikely to receive another round of stimulus checks or improved unemployment benefits until next year, if at all.
The failure of lawmakers to tackle the health crisis and its economic fallout could portend a difficult path for President-elect Joe Biden as he tries to push his agenda through what should be a divided Congress.
While there is still a chance for a stimulus bill this year, the stalemate means a COVID-19 relief package will almost certainly be a top priority for the new administration in early 2021.
Even so, Republicans could block the bill if they retained tight control over the Senate after two polls in Georgia on January 5.
The GOP’s opposition to spending more money is unlikely to change even if Trump is no longer in power, in part because Republicans suffered no major electoral setbacks in Congress to suggest the public is calling for more stimulus funding.
A day after the election, Senate Majority Leader Mitch McConnell (R-Ky.) Said a new back-up plan was needed and expressed optimism that Congress might be able to ” address it once the political unrest over the elections has been resolved.
But this week he was more austere, noting that “the snag that hung us up for months is still here,” a reference to Senate Republicans’ skepticism about spending billions of dollars on a plan.
“We have to think – if we’re going to come up with a bipartisan package here – what size is appropriate,” McConnell said this week. “I don’t think the current situation demands a multibillion dollar package.”
With only about half of the 22 million jobs lost as a result of the pandemic ending, the recovery still has a long way to go, and growth is now slowing as COVID-19 cases start to hit rock bottom. levels never before seen in the United States.
Trump, who before the election publicly pushed Congress to pass a relief bill even larger than the $ 2.2 trillion Democrats wanted, has largely moved on by digging into unsubstantiated allegations of widespread electoral fraud and refusing to concede.
And Treasury Secretary Steven T. Mnuchin – once the GOP leader for a plan – walked away from stimulus talks shortly before the election.
The Trump administration has indicated that it is ready to resume talks, but for now is leaving it in McConnell’s hands with the understanding that the Senate leader is considering pushing for a more modest measure.
In October, McConnell proposed a roughly $ 500 billion bill that – unlike the Democrats’ version – did not include any new checks for $ 1,200 for individuals. His bill offered help, including improved unemployment payments and forgivable loans for some small businesses.
“While the administration would likely be committed to working with Chief McConnell to tailor some of the details of the skinny package he intends to reintroduce, we’re less likely to take the lead, unless there is have a consensus to drop all existing proposals and start over, ”said a government official familiar with the talks.
Some lawmakers agreed it was time for the Trump administration to step back and leave the negotiations to Congress.
“Without disrespecting Secretary Mnuchin – who I think has worked really hard to try to get a number of deals, and it has been successful – I think the members are better off negotiating with them. members, ”said Sen. Roy Blunt (R-Mo.). “And I’m glad to see [McConnell’s] decision that he will step up and do our negotiations, and try to put a bill on the president’s desk that the president can sign.
But since the election, there have been no new negotiations – or attempts to negotiate – between McConnell and President Nancy Pelosi (D-San Francisco).
Pelosi and Senate Minority Leader Charles E. Schumer (DN.Y.) say they won’t go for a piecemeal bill or anything as small as Republicans have it offers. They say the GOP proposals do not fully address the economic problems caused by the pandemic, let alone what is needed to tackle the virus.
Pelosi said Friday that the GOP’s smaller plan “doesn’t appeal to me at all because they still haven’t agreed to squash the virus.” If you do not crush the virus, we will still have to deal with the consequences of the virus. “
The lame sessions of Congress – the time when lawmakers who have just survived or lost reelection return to Washington to work before the new Congress is sworn in in January – are notoriously difficult. The party that just won the White House generally wants to eliminate the problems of the new administration. But more often than not, no major policy is made.
Even so, there are still opportunities to resume negotiations and pass a bill this year. Government funding runs out on December 11 and neither McConnell nor Pelosi will be motivated to conduct these negotiations to avoid another shutdown. Additionally, COVID-19 rates are rising across the country as the country enters winter.
“You can’t ignore the fact that cases are on the rise and hospitalizations are on the rise,” said Ipsita Smolinski, chief executive of Capitol Street, a health policy consultancy. Still, she predicted that if a deal is struck soon, “it will be restricted.”
Republicans are convinced the economy does not need substantial support, pointing to a better-than-expected October jobs report that found the unemployment rate had fallen to 6.9%.
Senator John Kennedy (R-La.) Said Pelosi was to blame for refusing to compromise and leave Americans with nothing instead. “I hope the speaker will give in and allow us to start serious discussions,” he said.
Democratic leaders could also face pressure from within their ranks. In the House, moderate Democrats suffered surprising losses in the 2020 election and might feel emboldened to demand Pelosi to accept a smaller bill in order to push through something to fight the pandemic.
But Democrats also complain that Republicans have refused to bow, noting that they have already cut the original Democratic plan by $ 3.4 trillion.
“Unfortunately, the Senate and the White House tweaked their thumbs and we basically negotiated against ourselves,” Representative Ted Lieu (D-Torrance) said. “I expect the Senate will be able to work with us to get this package passed. We are not talking about a $ 3 trillion package. “
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