The Pak Banker

McConnell urges new COVID aid in broad funding bill

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The U.S. Congress should include a fresh wave of coronaviru­s stimulus in a must-pass $1.4 trillion spending bill aimed at heading off a government shutdown in the midst of a pandemic, top Senate Republican Mitch McConnell said.

After a monthslong standoff between Republican­s and Democrats that persisted as COVID-19 infections and deaths soared, lawmakers put forth a flurry of proposals in an attempt to pass something this month. Both McConnell and Presidente­lect Joe Biden separately spoke of passing a coronaviru­s aid bill quickly and debating an additional bill early next year to address the worst U.S. health crisis in living memory.

But difficult talks over details remained with little time to spare, as Congress rushes to pass a $1.4 trillion bill by Dec. 11 to keep government agencies funded. Without action, a range of government programs would be interrupte­d and many federal workers would be furloughed. McConnell said he would like to marry the funding bill with a coronaviru­s aid measure.

"We need a targeted relief bill" now, McConnell told reporters after meeting with his fellow Republican senators. For months he has been pushing a $500 billion approach that Democrats rejected as insufficie­nt.

McConnell also said that he consulted with the White House and was circulatin­g to Republican senators the outline of a bill that President Donald Trump would accept. McConnell did not provide details.

McConnell's outline is very close to the legislatio­n that the Senate leader has been touting for months and was rejected by Democrats, according to one Senate Republican source. The plan includes $332.7 billion in new loans or grants to small businesses, according to a document provided to Reuters.

Meanwhile, Senate Democratic Leader Chuck Schumer and House of Representa­tives Speaker Nancy Pelosi delivered to McConnell new ideas for reaching a compromise. Schumer refused to provide details during a press conference. Schumer called it "a private proposal to help us move the ball forward," as he accused McConnell of maneuverin­g to bring a partisan, Republican bill up for a vote instead of incorporat­ing Democratic ideas.

Previously, Schumer and Pelosi sought a $2.2 trillion bill that McConnell rejected. Earlier on Tuesday, yet another plan was floated by a bipartisan group of senators and House members seeking $908 billion in a range of COVID-19 relief measures.

It would set new emergency assistance for small businesses, unemployed people, airlines and other industries during the pandemic. It comes with the backing of a group of conservati­ves and moderates who claim it will appeal to a broad swath of Congress.

Earlier this year, over $3 trillion in coronaviru­s aid was enacted, which included economic stimulus measures and money for medical supplies. Republican Senator Lisa Murkowski urged quick action on the bipartisan plan as she ticked off business closures mushroomin­g in her state of Alaska "during a pretty dark and cold time of year," with many suffering job losses and food insecurity.

This third proposal would provide emergency aid through March 31, including $228 billion in additional Paycheck Protection Program funds for hotels, restaurant­s and other small businesses.

State and local government­s would receive direct aid under the bipartisan bill, a central demand by Pelosi and her fellow Democrats to prevent layoffs of front-line workers.

US airlines would receive $17 billion for four months of payroll support as part of $45 billion for the US transporta­tion sector that also includes airports, buses and the Amtrak passenger railroad, according to two people familiar with the plan.

The measure includes provisions that Republican­s have been pressing for, including new liability protection­s for businesses and schools grappling with the coronaviru­s pandemic.

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