$1.5 trillion idea gets some support

Trump said to be open to bipartisan group’s relief measure

WASHINGTON — Chief of Staff Mark Meadows said Wednesday that President Donald Trump is open to the compromise $1.5 trillion stim- ulus proposal from a bipartisan group of House lawmakers that was an effort to break a monthslong deadlock over bolstering the U.S. economy during the coronavirus pandemic.

The long-shot plan from a 50-member group of House Democrats and Republicans has a bigger total spending figure than the administration previously endorsed. It’s also higher than what Senate GOP leaders say would be acceptable to Republicans.

Federal Reserve Chairman Jerome Powell also weighed in, saying at a news conference that while the recovery has been faster than expected in the past 60 days, “there’s certainly a risk” the economy could slow without more stimulus.

“My sense is that more fiscal support is likely to be needed,” Powell said. He said about 11 million people are still out of work, small businesses are struggling and state and local governments have seen revenue drop.

Meadows said on CNBC that the $1.5 trillion proposal is not a “show-stopper.” But House Speaker Nancy Pelosi has called it insufficient, while Sen. John Thune of South Dakota, the chamber’s second-ranking Republican, said that large a stimulus would cause “a lot of heartburn” among GOP lawmakers.

Trump on Twitter urged Republican lawmakers to accept a higher level of spending than the last proposal made by the Senate GOP.

“I am hopeful that as leadership registers the anxiousness of members, both Democrats and Republicans, to get something done, that they will be responsive to that,” Rep. Stephanie Murphy, D-Fla., a leader of the moderate Blue Dog Coalition, told reporters Wednesday.

“And I think the tweet that Trump just sent out saying that he was open to more resources for the American people is a good thing, because they need more resources.”

After initially proposing a $1 trillion stimulus at the end of July, Senate Republicans attempted to advance a bill providing $650 billion in economic aid, without the direct payments to individuals that the president — and Democrats — want.

Senate Majority Leader Mitch McConnell declined to comment when asked about Trump’s call for Republicans to go higher. Pelosi and Senate Democratic leader Charles Schumer released a statement saying they were “encouraged” by Trump’s endorsement of higher spending. “We look forward to hearing from the president’s negotiators that they will finally meet us halfway,” they said.

Stimulus negotiations have been handled by Pelosi, Schumer, Meadows and Treasury Secretary Steven Mnuchin.

Mnuchin has cited $1.5 trillion as a figure the White House might be able to agree to meet.

The Problem Solvers Caucus plan was developed over six weeks with the knowledge of the White House and leadership from both parties.

The proposal offered compromises on the stalled talks. On aid to state and local governments, the group is backing about $500 billion, splitting the difference between the $915 billion sought by Pelosi and Schumer and the $150 billion put forward by the White House.

Meadows said the $500 billion figure is more than the White House estimates that states have lost in revenue because of the pandemic, but added that the administration could accept a figure in the $250 billion-$300 billion range.

Another fault line in talks has been the level of supplemental jobless benefits. The Problem Solvers proposed $450 a week for eight weeks, and then a transition to benefits of 100% of salary or $600, whichever is lower. That is a compromise between the $600 flat rate Democrats want — the same as expired in July — and the $300 Trump has backed.

Under the Problem Solvers plan, total spending could increase to about $2 trillion if the pandemic continues, or shrink to $1.3 trillion if it subsides more quickly. The White House had previously been willing to back about $1.1 trillion.

Sen. Roy Blunt, R-Mo., said a number higher than $1 trillion could be the basis for an agreement, if it can be done quickly.

“Maybe the escalator clause concept gives everybody a little something to brag about,” Blunt said. “There’s a deal there. I think it would be really a shame if we don’t figure out how to grab hold of it.”

But other senators resisted the idea.

“I need to see what it would be for and how it would be spent,” said John Kennedy, R-La. “And if a bill is chock full of spending porn as Speaker Pelosi’s bill is, I’m not going to vote for it.”