Northwest Arkansas Democrat-Gazette

RESCUE-FUND negotiatio­ns pick up.

- COMPILED BY DEMOCRAT-GAZETTE STAFF FROM WIRE REPORTS

WASHINGTON — With a key coronaviru­s rescue fund nearly exhausted, negotiatio­ns are accelerati­ng in Washington over President Donald Trump’s $250 billion emergency request to help smaller employers across the country keep workers on their payrolls.

Senate Minority Leader Charles Schumer, D-N.Y., and Treasury Secretary Steven Mnuchin spoke Wednesday morning about legislatio­n to shore up a paycheck subsidy program that has nearly reached its $349 billion lending limit. House and Senate aides were set to meet with Treasury Department officials later in the day.

Reaching a deal won’t be easy. The Capitol is largely shuttered, requiring consensus from all sides for any legislatio­n to be approved, and GOP leaders are vowing to stick closely to Trump’s request despite Democratic demands.

But the unpreceden­ted legislativ­e environmen­t gives Democrats considerab­le influence, even if their funding requests for hospitals and state and local government­s may have to be scaled back significan­tly or dropped, at least for now. Democrats blocked a fast-track bid to approve the funding last week, and Republican­s in turn stymied Democratic efforts for additional funding for other priorities in a brief debate.

Senate Majority Leader Mitch McConnell, R-Ky., had no comment, according to spokesman David Popp. The Senate is away from Washington through May 4, though it convenes twice each week for pro forma sessions that could be used to approve more coronaviru­s aid — though only if no senator objects.

With leaders unable to readily summon lawmakers to Washington, the usual power dynamics are scrambled, especially in the House. For example, Minority Leader Kevin McCarthy, R-Calif., can stymie legislatio­n more easily than if members are present, and Pelosi cannot rule the House with her typical tight grip.

“Tell Chuck Schumer and Nancy Pelosi to STOP blocking critical funding for small businesses. The Paycheck Protection Program is about to run out of money — millions of jobs are hanging in the balance. Congress MUST ACT!” McCarthy wrote Tuesday on Twitter.

At issue is the nearly $350 billion paycheck protection program that’s a centerpiec­e of last month’s $2.2 trillion rescue bill. The program gives grants to businesses with fewer than 500 workers so they can maintain payroll and pay rent while shutting down their businesses to follow social-distancing edicts.

The program is quickly running dry after being open for only a matter of days, though it’s unclear how much money has actually been distribute­d to businesses. Mnuchin says an additional $250 billion is needed immediatel­y.

But Democrats want money for hospitals burdened under covid-19 caseloads, as well as additional funding for states and local government­s that are feeling the strain as the economy slides into recession. Democrats also want to make sure the paycheck protection program is opened up more to businesses that don’t have establishe­d relationsh­ips with banks that have been accepting applicatio­ns for rescue funding.

The outlook for the legislatio­n is unclear, and negotiator­s may not be able to meet a potential deadline of this afternoon’s pro forma session.

Also on Wednesday, Trump threatened to shut down both chambers of Congress to allow him to fill vacancies in his administra­tion without Senate approval.

Trump spent several minutes of his daily coronaviru­s briefing Wednesday blaming Senate Democrats for blocking his nomination­s, even though most of the vacancies in the federal government are because Trump hasn’t selected anyone to fill them. Several of his nominees haven’t been given a confirmati­on hearing yet in the Republican-led Senate.

Trump cited a neverexerc­ised power the Constituti­on grants the president to adjourn Congress if leaders of the House and Senate can’t agree on whether to adjourn. The Senate often recesses but stays open in the pro forma sessions, which thwart Trump’s ability to make recess appointmen­ts that bypass the regular confirmati­on process.

“The current practice of leaving town while conducting phony pro forma sessions is a derelictio­n of duty that the American people cannot afford during this crisis. It is a scam. What they do, it’s a scam and everybody knows it,” Trump said.

Informatio­n for this article was contribute­d by Andrew Taylor and Laurie Kellman of The Associated Press and by Colby Itkowitz and Erica Werner of The Washington Post.

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