Stimulating optimism grows as GOP lawmakers warm to bipartisan plan

Photographer: David Swanson / Bloomberg

Prospects for a pandemic relief package before year-end have grown dramatically as senior Republicans warmed to the idea of ​​using a $ 908 billion proposal from a bipartisan group legislators as the basis for an agreement.

The plan sketched out by Republican and Democratic lawmakers in the House and Senate appeared to be the first real chance for a compromise that eluded party leaders and the White House for months.

Still, Senate Majority Leader Mitch McConnell has not publicly supported the plan, having won President Donald Trump’s backing for his own narrower proposal. This stance risks leaving him increasingly isolated as support shifts among Republicans keen to secure some sort of deal.

House Speaker Nancy Pelosi and Senate Democratic Leader Chuck Schumer have already endorsed the use of the bipartisan proposal in negotiations. Several Republican senators, including Lindsey Graham of South Carolina, a close ally of Trump, said Thursday it contained elements for a deal.

Graham said he introduced him to the president, whose support would be crucial in getting more Republicans on board.

Trump’s role

“The president is of the opinion that we need relief as soon as possible and that the package in question is in the right direction of what he would support if he had the right political dispositions,” Graham said. , who was at the White House for an event Thursday. “If the president voted for this, a lot of Republicans and Democrats would vote for it.”

Earlier today, Trump had backed McConnell’s efforts, saying “they were very close to a deal,” but did not directly mention the bipartisan proposal.

How the bipartisan stimulus and McConnell’s plans stack up: side by side

That plan has yet to be turned into legislation – which won’t be completed until next week – and a deal will depend on details that have suspended a deal in the past. These include the scale of aid to states and local governments, which many Republicans have opposed, and a Covid-19-related liability shield for employers, which Democrats have called a poison pill.

The four GOP senators behind the bipartisan proposal met with McConnell on Thursday. Alaska Senator Lisa Murkowski said it was a chance to “explain” the plan to her and provide more details. She said they left the meeting without any commitment from the GOP leader.

Support growth

“We are getting more and more support from Republicans and Democrats,” said another member of the group, Utah Senator Mitt Romney after the session.

“We are continuing to negotiate a full package that includes the full $ 908 billion – which deals with state and local coverage and civil liability and the extension of the PPP program,” he said, referencing the Paycheque Protection Program that supports small businesses. “There is transportation funding for the airlines, for the bus companies, for the transit systems.”

McConnell and Pelosi also spoke on Thursday. That discussion has focused on a broader measure of financing government operations, which lawmakers are working to complete before money runs out on December 11, as well as pandemic relief.

“We had a good conversation,” said the Kentucky Republican, without addressing the compromise proposal. “I think we’re both interested in getting a result on both the omnibus and a coronavirus package.”

Read more: Decline in jobless claims in the United States, offering Ray of Hope for the labor market

Republican North Carolina Senator Thom Tillis, who is not part of the bipartisan group, expressed concern about how state aid would be distributed, but said the proposal could be a “bridge” for to restore the American population and the economy to health.

“I think it’s about working on the details,” he said.

Pelosi and Schumer said that while they will seek changes in the bipartisan plan as stated, there are enough areas for them to pull out of a pre-election position in favor of a 2.4 trillion dollar stimulus. dollars.

Compromise ground covers a shorter period than the leaders’ earlier proposal – to provide aid during the winter – with Democrats hoping they can get another major relief bill after President-elect Joe Biden takes office in January .

Schumer said on Thursday that the United States risked a “double-dip recession” without a stimulus package.

Although the government reported on Thursday that claims for unemployment benefits in the United States had fallen the most in nearly two months, many analysts are increasingly warning that the economy will slow further or even contract within months. ahead, with the pandemic still causing closures and inconvenience consumers. Friday’s November jobs report is expected to show a further slowdown in payroll gains.

– With the help of Jordan Fabian and Jarrell Dillard