As virus crisis deepens, congressional rescue deal teeters

First U.S. senator tests positive; negotiations over $2T deal continue.

— Top-level negotiations between Congress and the White House teetered Sunday over a now nearly $2 trillion economic rescue package, as the coronavirus crisis deepened, the nation shut down and the first U.S. senator tested positive for the disease.

As President Donald Trump took to the podium in the White House briefing room and promised to help Americans who feel afraid and isolated as the pandemic spreads, the Senate voted against advancing the rescue package. But negotiations continued on Capitol Hill.

“I think you’ll get there. To me it’s not very complicated: We have to help the worker. We have to save the companies,” Trump said. “We’re enduring a great national trial and we will prove that we can meet the moment. We’re at war.”

At the otherwise emptied out Capitol, the draft aid bill was declared insufficient by Democrats, who argued it was tilted toward corporations and did too little to help workers and healthcare providers. The setback sent Republicans back to the negoti

ating table.

With a population on edge and shell-shocked financial markets poised for the new work week, doubts emerged about the fate of an agreement that would provide some relief against health and economic crises that are likely to stretch for several months.

“Americans don’t need to see us haggling endlessly,” warned Senate Majority Leader McConnell, R-Ky., his voice rising on the Senate floor. He sought passage of the package by today.

But Democrats say the largely GOP-led effort does not go far enough to provide health care and unemployment aid for Americans, and fails to put restraints on a proposed $500 billion “slush fund” for corporations.

Senate Democratic leader Chuck Schumer, D-N.Y., said the draft package “significantly cut back our hospitals, our cities, our states, our medical workers and so many others needed in this crisis.”

While the congressional leaders worked to send help, alarms were being sounded from coast to coast about the wave of coronavirus cases about to crash onto the nation’s health system.

New York City Mayor Bill de Blasio had dire, urgent news from the pandemic’s U.S. epicenter: “April and May are going to be a lot worse,” he said on NBC’s “Meet the Press.”

De Blasio all but begged Washington to help procure ventilators and other medi- cal supplies. He accused the president of “not lifting a finger” to help.

Trump urged Congress to get a deal done and, during the Sunday brief- ing, responded to criticism that his administration was sluggish to act. He cited his cooperation with the three states hardest hit — New York, Washington and California — and invoked a measure to give governors flexibility in

The measure would provide a quick, one-time stipend of about $1,200 per individual, $2,400 for couples, and $3,000 for family of four. The money would cut off at higher income levels.

An estimated $350 billion would be provided for small businesses to keep making payroll. Companies with 500 or fewer employees could tap up to $10 million each in forgivable small business loans to keep paychecks flowing.

Workers who are eligible would receive up to 39 weeks of unemployment insurance through the end of 2020 if they are sidelined by the outbreak. The coverage would be retroactive to Jan. 27.

The bill includes an additional $242 billion in additional emergency funds to fight the virus and shore up for safety net programs. That includes money for food stamps, child nutrition, hospitals, the Centers for Disease Control and public health and transportation agencies.

The measure includes $15.6 billion to augment the food stamp program, which helps feed around 40 million Low income people per year. It’s annual budget is around $70 billion.

The initial GOP plan called for $208 billion in loans to airlines and other industries, which would have to be repaid. Leaders are still negotiating the final number and how the money would be provided by the administration.

Negotiators are still hammering out whether there will be money give to the states, whose governors have requested billions to shore up their budgets. ASSOCIATED PRESS calling up the national guard under their control, while the federal government covers the bill.

But even as Trump stressed federal-local partnerships, some governors, including Republican Greg Abbott of Texas, expressed unhappiness with Washing- ton’s response. The president himself took a swipe hours earlier at Gov. J. B. Pritzker, D-Ill., saying that he and “a very small group of certain other Governors, together with Fake News” should not be “blaming the Federal Government for their own shortcomings.”

This came as the first senator, Republican Rand Paul of Kentucky, announced he tested positive for the coronavirus. Paul, who is a doctor and close ally of the pres- ident, said in a tweet he was not showing symptoms and was in quarantine.

Paul was seen at a GOP senators’ lunch on Friday and swimming in the Senate gym pool on Sunday morning. His office said he left the Senate immediately after learning his diagnosis.

A growing list of lawmak- ers have cycled in and out of isolation after exposure, and two members of the House have said they tested positive. Five senators were in self-quarantine Sunday evening.

In recent days, Trump invoked the Defense Protection Act, a rarely used, decades-old authority that can be used to compel the private sector to manufac- ture needed medical supplies like masks and venti- lators. Officials said Sunday that it would be used voluntarily and businesses would not be compelled to act.

“We are a country not based on nationalizing our business,” said Trump, who has repeatedly railed against socialism overseas and among Democrats. “Call a person over in Venezuela. Ask them, how did nation- alization of their businesses work out? Not too well.”

The president tweeted Sunday that automakers General Motors and Tesla were given “the go ahead” to make ventilators and other products. But no automaker is anywhere close to making medical gear such as ventilators and remain months away, if not longer. Nor do the car companies need the president’s permission to move forward.

Two days after he lashed out at a reporter who asked about his message to fright- ened Americans, Trump said, “For those worried and afraid, please know as long as I am your president, you can feel confident that you have a leader who will always fight for you.”

But minutes later, when he learned that rival Sen. Mitt Romney, R-Utah, was one of those in isolation, he declared “Romney’s in isolation? Gee, that’s too bad.”

Trump claimed he was not being sarcastic. He also, at one moment, incongruously complained about the lawsuits and scrutiny has faced in his short political career, saying “I think it’s very hard for rich people to run for office.”

The u rgency to act is mounting, as jobless claims skyrocket, businesses shut- ter and the financial markets are set to re-open Monday eager for signs that Wash- ington can soften the blow of the healthcare crisis and what experts say is a loom- ing recession. Stock futures declined sharply as Trump spoke Sunday evening.

Officials late Sunday put the price tag of the ballooning rescue package at nearly $2 trillion. That does not include additional measures being taken by the Federal Reserve to shore up the econ- omy.

Treasury Secretary Steven Mnuchin, who was leading a third day of nonstop talks on Capitol Hill, said the plan was meant to prop up the nation’s weakened economy for the next 10 to 12 weeks.

Mnuchin said workers and businesses will get assistance to help cover payrolls for the next 10 weeks; unemployment insurance; and a one-time “bridge payment” of about $3,000 for a family of four. Hospitals, he said, will get approximately $110 billion for the expected influx of sick patients.

The treasury secretary said a significant part of the package will involve working with the Federal Reserve for up to $4 trillion of liquidity to support the economy with “broad-based lending programs.”

But Democrats have pushed for add-ons, including food security aid, small business loans and other measures for workers — saying the three months of unemployment insurance offered under the draft plan was not enough.

They warned the draft plan’s $500 billion for corporations does not put enough restraints on business, saying the ban on corporate stock buy-backs is weak and the limits on executive pay are only for two years.

“We’re not here to create a slush fund for Donald Trump and his family, or a slush fund for the Treasury Department to be able to hand out to their friends,” said Massachusetts Sen. Elizabeth Warren. “We’re here to help workers, we’re here to help hospitals.”

The president, when pressed by a reporter, dodged a question as to whether his own business would seek federal funds. He also said, unlike his predecessors at times of national crisis, he would likely not call any past presidents for advice, saying “I don’t think I’m going to learn much.”

The details are coming from drafts of both bills circulating among lobbyists but not yet released to the public. They were obtained by The Associated Press.

For most people, the new coronavirus causes only mild or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia.

The vast majority of people recover from the new virus. According to the World Health Organization, people with mild illness recover in about two weeks, while those with more severe illness may take three to six weeks to recover.