Republicans split over scope of next relief package.
WASHINGTON — The price tag for the next COVID-19 aid package quickly could swell above $1 trillion as White House officials negotiate with Congress over money to reopen schools, prop up small businesses, boost virus testing and keep cash flowing to Americans while the virus crisis deepens in the U.S.
Senate Majority Leader Mitch McConnell on Tuesday promised a new round of direct payments to earners below a certain income level, similar to the $1,200 checks sent in the spring. President Donald Trump insists on a payroll tax holiday for workers. And Democrats want billions to outfit schools and shore up local governments.
“Regretfully, this is not over,” McConnell said after a raucous private GOP lunch.
Treasury Secretary Mnuchin and acting chief of staff Mark Meadows spent the day on Capitol Hill, meeting separately with McConnell, House Speaker Nancy Pelosi and others trying to broker a compromise between the GOP’s emerging $1 trillion proposal with the House’s more sweeping $3 trillion bill.
The lunch session grew heated as key Republican senators complained about big spending, vowing to stall the relief bill’s passage.
Supporters of the package “should be ashamed of themselves” Sen. Rand Paul of Kentucky said as he emerged.
As a long line of senators rose to speak about aspects of the bill, Texas Sen. Ted Cruz asked his colleagues, “What in the hell are we doing?”
Cruz warned if the economy is still shut down come November, Joe Biden will win the White House, Democrats will control the Senate and “we’ll be meeting in a much smaller lunch room,” according to a person granted anonymity to discuss the closeddoor session.
Sen. Rick Scott of Florida left saying it’s wrong to “bail out” cash-strapped states.
“Florida taxpayers are not going to pay for New York’s expenses,” he said.
The Republicans are poised to roll out a $1 trillion package, what McConnell called a “starting point” in talks. It’s a counter-offer to Pelosi’s $3 trillion Housepassed plan as they race to strike a deal by the end of the month.
That’s when a $600 weekly unemployment benefits boost and other aid, including a federal rental moratorium on millions of apartment units, expires.
McConnell’s package wold send a fresh round of direct cash payments to Americans below a certain income level, likely $75,000 for singles, extend small business loans under the Paycheck Protection Program and create a five-year liability shield against coronavirus lawsuits.
It’s also expected to include at least $105 billion for education, with $70 billion to help K-12 schools reopen, $30 billion for colleges and $5 billion for governors to allocate.
The Trump administration wanted school money linked to reopenings, but in McConnell’s package the money for K-12 would be split 50-50 between those that have in-person learning and those that don’t.
Republicans want to replace the $600 weekly federal jobless benefit with a lower amount, to prevent the unemployed from receiving more aid than they would through a normal paycheck, Republicans said.
Mnuchin said the unemployment aid could be phased down to a percentage of a worker’s previous income, according to a Republican granted anonymity.
Trump also wants a full repeal of the 15.3 percent payroll tax, which is shared among employers and employees, and funds Social Security and Medicare. Experts say that alone would cost $600 billion.
Easing the payroll tax is dividing Trump’s party because it does little to help out-of-work Americans and adds to the debt load.
The tax already is being deferred for employers under the previous virus relief package. Supporters say cutting it now for employees would put money in people’s pockets and stimulate the economy.
After meeting with Mnuchin, Pelosi and Senate Democratic leader Chuck Schumer said the Republicans must quit stalling.
“The president has been a disaster in the whole health care area,” Schumer said. “He’s holding them back.”