Hurdles loom for last-ditch stimulus effort

A last-ditch attempt by Democrats and the White House to restart negotiations on a new stimulus drew skepticism in Congress that a deal could be reached and written into law by Election Day.

Both sides had largely given up on stimulus talks after aweekslong stalemate, even amid signs of strain in financial markets.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin resumed talks during a Friday afternoon phone call, Pelosi’s office said.

“The two agreed to continue their conversation in the days ahead,” Pelosi spokesman Drew Hammill said in a tweet. No details on the content of the call were provided.

Separately, House Democrats started work on what would be a roughly $2.4 trillion stimulus proposal that they could take into negotiations.

The new Democratic plan is roughly in line with the last offer made by Pelosi and Senate Minority LeaderChuck SchumertoMnuchin and White House Chief of Staff MarkMeadows, which the administration rejected. Smaller than the $3.4 trillion package the House passed in May, it’s still more than the $1.5 trillion President

Donald Trump has indicated he would accept, and much bigger than the $650 billion in new spending supported by Senate Republicans.

Rep. Kevin Brady of Texas, the top Republican on the House tax writing committee, called the move “a waste of time.”

“It doesn’t get us an inch closer,” Brady said.

Even if a deal can’t be done by Election Day, some Democrats held out hope of passing a stimulus bill during the lame-duck session after the election, arguing that if Republicans lose control of the Senate they may be less concerned about holding the line on spending.

The Democratic plan adds to the previous $2.2 trillion PelosiSchumer plan, with help for the U.S. airline industry to avert massive job losses — which could start Oct. 1, when restrictions expire from a prior round of federal assistance. The plan does also include small-business aid, as well as help for restaurants and the unemployed.

Although some Democrats portrayed it as an opening to an eventual deal, members of both parties were pessimistic as the legislative clock ticks down. The Senate is planning to leave Washington for a month of campaigning after work next week, with the possible exception of a vote on a Supreme

Courtnomination. TheHouse is also planning to leave and be on standby for members to return.

“I would say right nowwe are in a difficult spot as far as getting something done,” said Senate Banking Chairman Mike Crapo, RIdaho.

TheDemocraticplan could get a vote next week, though officials said no decisions have been on whether to bring it to the floor.

House Majority Leader Steny Hoyer said Thursday that the main focus remains on getting a deal with Mnuchin and the Senate before Congress is adjourned.

“A message bill is one thing but we want to get something signed so people get money,” he said.