Relief talks near finish
Compromise deal does not include direct aid to states
After months of delay and disagreement, a deal to approve another coronavirus relief package appears imminent in Congress as top lawmakers are negotiating furiously to avoid going home empty-handed at the end of the year.
The compromise proposal that is coming together would give billions of dollars though another round of direct stimulus checks to small businesses, schools, hospitals, the unemployed and everyday Americans. It also includes more money for vaccine distribution, which started this week.
The deal apparently does not include direct aid to states and local government agencies — the top priority of Democrats for months — but instead hands tens of billions of dollars to the Federal Emergency Management Agency so that it can reimburse states for COVID -19 related expenses. Republicans opposed providing grants to states and local governments because they believed states would use the money to paper over economic problems that preceded the pandemic.
New York is facing a $15 billion deficit that Gov. Andrew M. Cuomo warned Wednesday will be “devastating ” if federal aid does not save the state from making cuts to education, health care and other services. The state had already faced a multibillion dollar deficit before the pandemic struck.
“Congress’ failure has placed local governments in the direct line of fire from an economic triple treat: losses in sales tax revenue to the tune of $2 billion; cuts in state reimbursement which total more than $600 million and will grow as the state closes its $14 billion budget deficit; increases in the demand for social services like home heating, food stamps and meals on wheels,” state Association of Counties President Jack Marren and New York State Council of Education Associations President Marc Molinaro, both Republicans, said Wednesday.
The bill is expected to include some liability protections for businesses from coronavirusrelated lawsuits, a red line for Senate Majority Leader Mitch Mcconnell, R-KY.
Top congressional leaders met late into the night Tuesday and planned to gather again late Wednesday. It was the first time the four leaders of the caucuses have gathered for months — a positive sign for breaking through the stalemate. Leaders hope to pass the deal with legislation to fund the government before they adjourn for the holidays. Congress has not passed a major coronavirus package since April.
Some lawmakers hope the new deal will be followed by another legislative response after President-elect Joe Biden takes office. Governors, including Cuomo, met with Biden Wednesday afternoon in an online Zoom conference.
Biden told the governors he will spend his first 100 days focusing on vaccine distribution, encouraging mask use across the country — including mandating it on federal property — and opening up schools.
“This road is going to be long and it’s going to be tough, but I want you to know, this is not a one off meeting,” Biden said.