Late-stage negotiations on $450B aid package drag
WASHINGTON — Late-stage negotiations in Washington on additional funding for a small-business rescue program dragged Monday past a hoped-for deadline, though both the Trump administration and key lawmakers insisted they are close to a final pact.
The contours of the fourth coronavirus response bill appear largely set. It would provide more than $450 billion, with most of the funding going to boost a small-business loan program that’s out of money. Additional help would be given to hospitals, and billions more would be spent to boost testing for the virus, a key step in building the confidence required to reopen state economies.
The emerging draft measure — originally designed by Republicans as a $250 billion stopgap to replenish the payroll subsidies for smaller businesses — has grown into the second-largest coronavirus response bill so far. Democratic demands have caused the measure to balloon, though they will be denied the money they want to help struggling state and local governments.
The Senate met for a brief pro forma session Monday that could have provided a window to act on the upcoming measure under fast-track procedures requiring unanimous consent to advance legislation, but it wasn’t ready in time.
Majority Leader Mitch McConnell, R-Ky., set up another Senate session for Tuesday in the hope that an agreement will be finished by then.
“It’s now been four days since the Paycheck Protection Program ran out of money. Republicans have been trying to secure more funding for this critical program for a week and a half now,” McConnell said. “Our Democratic colleagues are still prolonging their discussions with the administration, so the Senate regretfully will not be able to pass more funding for Americans’ paychecks today.”
The House has announced it could meet as soon as Wednesday for a vote on the pending package, according to a schedule update from Majority Leader Steny Hoyer, DMd. The chamber is likely to have to call lawmakers back to Washington for a vote, which will present logistical challenges.
With small-business owners reeling during an outbreak that has shuttered much economic activity, Treasury Secretary Steven Mnuchin — the administration’s point man in the talks with Democrats — said he was hopeful of a deal that could pass Congress quickly and get the Small Business Administration program back up by midweek. But optimism regarding an immediate deal was tempered.
“I heard today from our legislative affairs team that they are hopeful we can get a deal this week,” top White House adviser Kellyanne Conway said
Monday on Fox News. “The secretary feels very confident. He said that yesterday that a deal is happening. Much better position than we were, say, a week ago.”
The emerging accord links the administration’s effort to replenish the small-business fund with Democrats’ demands for more money for hospitals and virus testing. It would provide more than $300 billion for the small-business payroll program, with $60 billion or so set aside for community lenders that seek to focus on underbanked neighborhoods and rural areas.
Another $60 billion would be available for a small-business loans and grants program that has previously been aimed at helping businesses harmed by natural disasters like hurricanes. Additionally, it would bring $75 billion for hospitals and $25 billion for testing, according to those involved in the talks.
Democrats have been pushing to boost funding to cash-strapped states and local governments whose revenues have cratered. They had proposed $150 billion for the effort, but GOP leaders stood hard in opposition, at least regarding the current package of COVID-19 aid.
The government’s Paycheck Protection Program has been swamped by companies applying for loans and reached its appropriations limit last Thursday after approving nearly 1.7 million loans. That left thousands of small businesses in limbo as they sought help.
The National Federation of Independent Business, a GOP-friendly organization that advocates for small businesses in Washington, said it had surveyed their members and reported that only 1 in 5 applicants had received money so far.