Northwest Arkansas Democrat-Gazette

NEW ROUND of federal relief stalemated.

- ERICA WERNER

WASHINGTON — House Speaker Nancy Pelosi and Senate Minority Leader Charles Schumer said Monday that they won’t agree to the Trump administra­tion’s insistence on more money for small business loans unless their demands are met for additional funding for hospitals, state and local government­s and food stamp recipients.

The Democratic leaders also rejected suggestion­s from President Donald Trump that the country could reopen quickly, saying “there is still not enough testing available to realistica­lly allow that to happen.”

The statement from Pelosi, D-Calif., and Schumer, D-N.Y., early Monday followed a Saturday statement from congressio­nal GOP leaders in which they rejected the Democrats’ demands and showed no interest in negotiatin­g.

The developmen­ts appeared to harden a stalemate on Capitol Hill over how or when the federal government will take further action to address the worsening economic impacts of the coronaviru­s, with millions newly unemployed and much commerce in the nation at a virtual standstill as the U.S. confronts recession conditions.

Congress acted quickly late last month to pass a $2.2 trillion rescue package for small and large businesses, individual Americans and the unemployed, as well as health-care systems and local government­s. There is a recognitio­n that more will need to be done — but not an agreement on how to structure new funding.

Treasury Secretary Steven Mnuchin last week requested urgent congressio­nal action to approve an additional $250 billion to supplement a $350 billion forgivable loan program for small businesses that is quickly being obligated. That initiative, run by the Small Business Administra­tion, is called the Paycheck Protection Program. But Democrats refused to approve the measure when Senate Majority Leader Mitch McConnell, R-Ky., sought to advance it Thursday, insisting on changes to the small business program as well as at least $250 billion more for other priorities.

The Small Business Administra­tion says there have now been more than 800,000 loans approved, totaling more than $200 billion. But it’s not clear how many small businesses have actually gotten any money. Banks and other lenders are the ones that actually have to disburse the money, and they have complained of a cumbersome process. And 800,000 loans represent a small fraction of the 30 million small businesses in the United States.

Senate Republican­s argue that the program needs to be re-upped immediatel­y because once the initial $350 billion has been committed lenders will be locked out of applying for more loans.

Prospects for resolving the congressio­nal standoff are unclear as there appear to be few if any negotiatio­ns occurring. Neither McConnell nor the White House responded to the statement from Pelosi and Schumer.

“Small businesses, hospitals, frontline workers and state and local government­s across the country are struggling to keep up with this national crisis. They need more help from the federal government and they need it fast — our nurses, doctors and health-care workers need it as much as anyone else,” Schumer and Pelosi said in their statement.

Pelosi and Schumer had demanded an additional $150 billion for cities and states, $100 billion for hospitals and health-care systems and an additional 15% increase in benefits for food stamp recipients.

A bipartisan group of governors Saturday asked Congress to approve $500 billion in aid for cash-strapped states that are struggling to deal with mounting costs and a loss in revenue triggered by the pandemic.

The House and Senate are both out of session, so legislatio­n could advance only by a voice vote or unanimous consent.

The Senate gaveled in and out of session Monday for a brief pro forma session, but there was no attempt on either side to advance legislatio­n. The Senate’s next such session is Thursday — one day before White House adviser Larry Kudlow has said the Paycheck Protection Program will run out of money. Informatio­n for this article was contribute­d by Aaron Gregg of The Washington Post.

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