LAWMAKERS EYE MORE VIRUS RELIEF
Senators consider new batch of aid targeting businesses
Democratic and Republican lawmakers have held early discussions about another round of coronavirus stimulus spending as they seek to blunt the fast-spreading Omicron variant and its urgent threats to public health and economic recovery.
The early efforts have focused primarily on authorizing billions of dollars to help an array of businesses — including restaurants, performance venues, gyms and even minor league sports teams — that face another potential blow to their already-battered balance sheets as a result of the evolving pandemic.
In recent weeks, the talks have been led by Sens. Ben Cardin, D-Md., and Roger Wicker, R-Miss., according to four people familiar with the matter, who spoke on the condition of anonymity to describe their work, which is ongoing. The duo in mid-December cobbled together the outlines of a roughly $68 billion proposal, two of the people said, which could include a mix of new spending and a repurposing of some unused cash authorized under previous packages.
Cardin and Wicker have not yet finalized the businessfocused measure, according to those familiar with their work, adding that the two lawmakers have huddled with members from both parties, including Sens. Maria Cantwell, D-Wash., Mark Warner, D-Va., and Susan Collins, R-Maine, in an attempt to build support. They may face an uphill battle in the narrowly divided chamber, where past attempts to provide aid for restaurants and other industries have faltered amid GOP concerns about adding to the federal deficit.
But the talks nonetheless reflect the nation’s growing fears about the Omicron variant that has swept across the country with devastating speed. With coronavirus cases surging to record highs — and some hospitals once again under immense strain — lawmakers have started to worry that the pandemic could unleash fresh economic havoc.
For months, the United States appeared to be turning a corner. Coronavirus vaccines and boosters were readily available, new treatments were coming on the market and the economy showed signs of improvement, posting at one point in November the fewest number of new claims for unemployment benefits since the late 1960s. The progress came as a result of considerable investment from Congress, where lawmakers have spent nearly $6 trillion on relief since the start of the pandemic, including a roughly $1.9 trillion package known as the American Rescue Plan that counted as President Joe Biden’s first legislative achievement.
But those hard-fought gains have appeared at risk as businesses and schools once again close and Americans hunker down against a highly transmissible variant of the virus. More than 15,000 flights have been canceled since Christmas Eve, with another 3,000 this Monday alone, as the pandemic continues to wreak havoc on the workers and businesses upon which the economy depends.
The White House has maintained that it has the resources to respond to any immediate economic disruption caused by the Omicron wave. That includes money for public health as part of the American Rescue Plan, as well as billions of dollars provided under the law for states to use as needed, which Biden touted during an event at the White House on Tuesday.
“We’re going to see, as you all have been hearing, a continued rise in cases. Omicron is very transmissible,” the president warned.
On Wednesday, White House press secretary Jen Psaki pointed to additional spending that could help turn the tide, including $130 billion that Washington sent to states to try to mitigate the spread of the virus in schools. The money is significant, since school closures could add to the burden on parents, who might be forced to take time off work as a result.
But Psaki otherwise declined to say the White House has engaged in talks with Democrats and Republicans about another tranche of relief targeting businesses, including restaurants, emphasizing only that the Biden administration is in “constant discussions” with lawmakers.
In the meantime, other federal coronavirus stimulus programs have run out of money or reached the end of their planned lives, raising fresh concerns on Capitol Hill that more aid might be needed.
Sen. Patrick Leahy, D-Vt., chairman of the chamber’s Appropriations Committee, has already started evaluating existing aid and “potentially the need for additional resources for vaccines, therapeutics, testing and other needs,” according to a committee aide. The inquiry comes weeks after the Biden administration announced a plan to distribute half a billion free at-home tests.