Evolving aid package offers billions for hospitals, testing
WASHINGTON » The Trump administration and Congress are nearing an agreement as early as Sunday on an aid package of up to $450 billion to boost a small-business loan program that has run out of money and add funds for hospitals and COVID-19 testing.
With small-business owners reeling during a coronavirus outbreak that has shuttered much economic activity, Treasury Secretary Steven Mnuchin said he was hopeful of a deal that could pass Congress quickly and get the Small Business Administration program back up by midweek.
“I think we’re very close to a deal today. I’m hopeful that we can get that done,” he said.
Senate Minority Leader Chuck Schumer, D-N.Y., said he believed a deal could be reached late Sunday or early Monday. “We still have a few more details to deal with,” he said.
On a conference call Sunday afternoon that included President Donald Trump, Mnuchin and Republican senators, Senate Majority Leader Mitch McConnell, R-Ky., indicated the only remaining item for discussion involved the money for testing, according to a Senate GOP leadership aide who spoke on condition of anonymity to discuss a private call.
Under the proposed deal, the government’s Paycheck Protection Program for small businesses would get roughly $300 billion, according to Mnuchin. The program has been swamped by businesses applying for loans and reached its appropriations limit last Thursday after approving nearly 1.7 million loans. That left thousands of small businesses in limbo as they sought help. An additional $50 billion in the evolving deal would go for disaster loans.
About $75 billion would go to U.S. hospitals, for those straining under a ballooning coronavirus caseload as well as those struggling to stay financially afloat after suspending elective surgeries during the pandemic. About $25 billion would be added for COVID-19 testing, something states have said was urgently needed. The money for hospitals and testing were priorities sought by congressional Democrats.
But additional aid to state and local governments would be left out, Mnuchin said. Democrats have been keen to boost funding to cash-strapped states and local governments whose revenues have cratered, but the issue threatened to provoke fights between large, hightax states like California and New York and smaller states more typically run by Republicans.
“The president is willing to consider that in the next bill, but wants to get this over the finish line with a focus on small businesses, hospitals and testing,” Mnuchin said.
He said he’s been in touch with GOP leaders including McConnell, R-Ky., and House Minority Leader Kevin McCarthy, RCalif., and all are “on board with the same plan.” On the Sunday call with senators, Mnuchin and McConnell reiterated that money for state and local governments as well as food stamps would not be included in the package, according to the GOP aide.
“I’m hopeful that we can reach an agreement, that the Senate can pass this tomorrow, and that the House can take it up on Tuesday, and, Wednesday, we’d be back up and running,” Mnuchin said earlier in his TV interview.