No deal yet as stimulus talks dragging on

WASHINGTON — White House officials and congressional leaders are trying to address a number of lingering policy disagreements as they race to finalize an approximately $900 billion coronavirus relief package, with growing signs that the talks will drag into the weekend.

Among the most vexing issues is whether to curb the powers of the Federal Reserve and how to structure a new round of stimulus checks. Lawmakers are also clashing over aid for theaters and music venues, and relief for cities and states.

They have fought over many of these issues since May, and they were trying to resolve them all at once on Thursday, creating a chaotic scene with numerous lawmakers unsure about the latest state of play.

Negotiators were hoping to resolve all of their differences and pass matching bills through the House and the Senate by Friday night to marry the stimulus bill with a government funding package. But the prospects of this all happening appeared to slip away late Thursday. If they do not pass at least a stopgap spending bill by Friday night, the government will shut down Saturday.

“We need to complete this work and complete it right away,” Senate Majority Leader Mitch McConnell, R-Ky., said late Thursday. “The Senate’s not going anywhere until we have COVID relief out the door . ... In the meantime, we’re going to stay productive.”

Congressional leaders have cited significant progress in recent days as talks accelerated. While several difficult sticking points remain, aides are expressing optimism that no new problems would prevent an agreement.

The stimulus package under discussion would include $600 stimulus checks for millions of Americans, 10 weeks of jobless aid, $330 billion in small business assistance, money for vaccine distribution, and funding for a range of other programs. Sen. John Thune, R-S.D., said that lawmakers are still reviewing how to design eligibility for the stimulus checks and that disagreements over this issue remains “one of the biggest challenges.”

Congressional leaders add stimulus checks to $900 billion economic relief deal

Many other issues remain unresolved. Republicans were still demanding limits to emergency lending programs of the Federal Reserve and the Treasury Department. Democrats believe these restrictions, pushed primarily by Sen. Pat Toomey, R-Pa., would constrain the ability of the incoming Biden administration to stabilize the economy during a downturn.

Toomey on Thursday told reporters the issue was a “bright red line” for him in negotiations. Sen. John Barasso, R-Wyo., the third highest-ranking Republican senator, also called language on the Fed facilities “critically important” for GOP lawmakers. Lawmakers on Thursday were consulting with Federal Reserve Chairman Jerome Powell about the impact of the Toomey push.

Democratic lawmakers, meanwhile, are seeking to include funding for the Federal

Emergency Management Agency to give to states and cities in emergencies. Republicans are wary that measure could amount to a form of aid for states and cities and have pushed back against it. Republican lawmakers agreed to drop their demands for a sweeping coronavirus liability shield in exchange for Democrats agreeing to abandon their push for hundreds of billions in state and local aid, but the dispute about the FEMA money remains unresolved. Democrats say the measure would only cost about $1 billion.

Similarly, Democratic lawmakers are seeking to delay the Dec. 31 deadline that states and cities have to spend unused federal assistance before that funding expires and has to be returned. Republicans have been resistant to that change as well, aides said.