Senators unveil relief bill

Biparty lawmakers plan to unveil a coronavirus stimulus package on Tuesday after months of congressional inaction to limit the economic damage caused by the outbreak.

Senator Mark Warner, a Democrat from Virginia and a member of a congressional group that has discussed a new relief plan, told CNBC the proposal would be in price between $ 2.2 trillion and $ 500 billion. dollars sought by Democratic and Republican leaders, respectively. He called for an “interim package” to provide support until President-elect Joe Biden takes office in January.

“If there’s one thing I hear consistently it’s Congress, don’t leave town for the holidays leaving the country and the economy adrift with all those initial CARES [Act] programs are running out, ”Warner told CNBC’s“ Squawk Box ”.

The Washington Post reported the plan would cost $ 908 billion in total and likely include an improved unemployment benefit of $ 300 per week, $ 300 billion for paycheck protection program small business loans, $ 240 billion dollars for state and local governments, temporary corporate liability protection and $ 50 billion. for health care support and vaccine distribution. It would not include a second round of direct payments. The newspaper noted that the details were not necessarily final.

It’s unclear whether congressional leaders will pass the proposal or if it will lead to a breakthrough before the end of the year. Democrats opposed liability protections and pushed for an additional unemployment benefit of $ 600 per week, while the GOP pushed against further state and local aid.

The pandemic has swept across the country, straining hospitals and forcing national and local authorities to implement new restrictions to slow infections. At the same time, lifelines put in place by Congress earlier this year will expire at the end of the year, hitting Americans who are already struggling to cover costs.

Programs that expire at the end of December include an extension of unemployment insurance, a federal moratorium on student loan repayments, and some eviction protections.

House Speaker Nancy Pelosi, D-Calif., And Senate Majority Leader Mitch McConnell, R-Ky., Have not backed down with their $ 2.2 trillion aid bills and $ 500 billion, respectively. Leaders of the Democratic-led House and the GOP-controlled Senate have not held formal stimulus talks since the 2020 election on November 3.

During the standoff, members of both sides called for a compromise to alleviate some of the pressure on the economy and the healthcare system. In addition to economic programs, the federal government will likely need to approve funds to streamline the distribution of Covid-19 vaccines in the coming months.

Senators who have joined discussions on the aid proposal include Warner, Sen. Joe Manchin, DW.V., Sen. Lisa Murkowski, R-Alaska and Sen. Mitt Romney, R-Utah. Some members of the House were also involved.

If unemployment programs expire at the end of the year, about 12 million Americans could lose benefits. Both policies allow people to have insurance for longer than they normally would and ensure that self-employed workers, contractors and others who would not normally be eligible for benefits are eligible to receive them.

Warner on Tuesday led a letter from around 30 Democratic senators to the House leadership calling for an extension of the two policies. They wrote that the loss of profits around Christmas would be “particularly cruel”, especially as the epidemic is expected to worsen during the winter months.

Some lawmakers could push to tie the coronavirus aid provisions to a spending bill that Congress must pass by December 11 to avoid a government shutdown.

This story is developing. Please come back for updates.

– CNBC’s Ylan Mui contributed to this report

Subscribe to CNBC on YouTube.