The Mercury News Weekend

Senators block virus aid

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WASHINGTON » Senators torpedoed quick passage of a new coronaviru­s aid package Thursday, with Democrats rejecting a Trump administra­tion request for $250 billion to boost a small business payroll fund and Republican­s refusing Democrats’ demand for another $250 billion for hospitals and states.

The standoff doesn’t end the pursuit of more rescue funds. Democrats and Republican­s agree the aid is urgently needed and talks continue, but it reinforces that Congress and the White House will need to find bipartisan agreement.

“Nobody thinks this will be the Senate’s last word on COVID-19,” said Senate Majority Leader Mitch McConnell. “Let’s continue to work together, with speed and bipartisan­ship. We will get through this crisis together.”

House Speaker Nancy Pelosi declared the Senate vote merely a “stunt” as the country faces an “epic” crisis. She ridiculed the administra­tion for trying to jam a $250 billion request through Congress with 48 hours’ notice.

“Really?” Pelosi said on a conference call with reporters.

The stall comes as communitie­s across the nation strain to meet health care needs and salvage local economies pummeled by the crisis. A new jobless report shows a whopping 16.8 million Americans are now out of work.

With Congress all but shuttered — and unlikely to return April 20, as planned — lawmakers pledge to keep negotiatin­g with the White House to provide fresh help, beyond the $2.2 trillion package passed last month.

In the brief Senate session, Democrats rejected Trump’s request for $250 billion to supplement a “paycheck protection” program for businesses crippled by the outbreak.

McConnell and Treasury Secretary Steven Mnuchin say the business program, which involves direct subsidies to companies to keep employees on payroll and pay company rent, is on track to quickly deplete its first $350 billion infusion as businesses rush to apply for the aid.

Democrats are not opposed to boosting the payroll fund, but Pelosi wants to ensure equity in lending to minority- owned businesses and others that may not have routine access to financial institutio­ns.

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