Clarity emerging on virus aid bill
The White House is offering some movement on help to state, local governments and unemployment.
WASHINGTON — After more than a week’s worth of meetings, at least some clarity is emerging in the bipartisan Washington talks on a huge COVID-19 response bill.
An exchange of offers Tuesday and a meeting devoted to the U.S. Postal Service on Wednesday indicates a long slog remains, but the White House is offering some movement in House Speaker Nancy Pelosi’s direction on aid to states and local governments and unemployment insurance benefits.
Multiple issues remain, but some areas of likely agreement are coming into focus.
Here’s a look where things stand based on public and private statements by key players and staff:
Jobless benefits: Pelosi is staking out a hard line on extending a $600-perweek supplemental pandemic federal jobless benefit, which lapsed last week. Republicans offered to extend the benefit into December and cut it to $400, according to aides confirming leaks reported in Politico. The aides were unauthorized to discuss the private talks and spoke to The Associated Press on condition of anonymity. The unemployment insurance issue is perhaps the most important to resolve.
Aid to state and local governments: Similarly, the White House has offered Democrats $150 billion in new appropriations to help state and local governments alleviate revenue losses from the damage the coronavirus has wrought on the economy. That matches the amount appropriated after a huge behind-the-scenes battle during negotiations on the bipartisan $2 trillion coronavirus bill that passed in
March. Much of that original money is left over, and all sides want greater flexibility in using it, but Pelosi is demanding far more — almost $1 trillion — and key Republicans like Sens. Susan Collins of Maine, Cory Gardner of Colorado and Mitt Romney of Utah are pressing for more money.
Cash/economic stimulus: Pelosi and President Donald Trump agree on another $1,200 direct payment to most Americans, making the idea all but certain to be included in the final agreement, at a cost in the $300 billion range. Pelosi is also pressing the case for a 15% increase in food stamp benefits that are especially important to key progressive constituencies, and Democrats won’t allow $20 billion in aid to farmers without a big trade-off on food aid. Democrats are also pressing for help for renters and homeowners having difficulty making housing payments.
Education: A cornerstone to any agreement, and one of the areas in which both sides are eager to display generosity, involves over $100 billion for help to school systems. The White House and its GOP allies are pressing for more money for schools that return students to the classroom and want to help private
schools as well.
Liability shield: Senate Majority Leader Mitch McConnell, R-Ky., continues to insist that the legislation include some sort of shield against lawsuits brought against businesses, schools and universities, and charities that operate during the pandemic. Pelosi is opposed for now, but Democrats — who see it’s a key to any final deal — aren’t ruling the idea out.
Postal service: The Postal Service is being run by Postmaster General Louis DeJoy, a Trump ally under attack for management changes that have coincided with delivery delays. A recent Democratic offer called for $10 billion in overtime and other costs, down from a $25 billion plan in the House-passed bill. DeJoy met with negotiators Wednesday, a demand by Pelosi and Senate Minority Leader Chuck Schumer that follows his refusal to meet with Capitol Hill Democrats.
Paycheck protection program: More than $100 billion in leftover loan funding from the Paycheck Protection Program — relief money for small businesses — is up for grabs. Top advocates like Sen. Marco Rubio, R-Fla., are backing plans to ease some loan forgiveness rules.