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Congress, White House struggle to find deal on new coronavirus aid

Published 07/28/2020, 06:24 AM
Updated 07/28/2020, 08:36 PM
© Reuters. Senate Majority Leader McConnell arrives to a luncheon on Capitol Hill in Washington

By David Lawder and David Morgan

WASHINGTON (Reuters) - Republicans in the White House and the U.S. Congress were in disarray over their own plan for providing $1 trillion in new coronavirus aid on Tuesday, as negotiations aimed at reaching a compromise bill with Democrats also sputtered.

President Donald Trump told reporters that there were aspects of the bill hammered out with fellow Republicans and unveiled on Monday that he did not like. Trump did not elaborate, but added that in the back-and-forth of negotiating, "It's sort of semi-irrelevant."

Republican Senate Majority Leader Mitch McConnell said he opposed "non-germane" add-ons in the plan, including a provision to fund a new FBI building that the White House had insisted upon and is not related to coronavirus aid.

The back-biting came as a $600-per-week enhanced coronavirus unemployment benefit was due to expire on Friday. The payment is on top of state jobless benefits that together help workers cope with the economic shock of the pandemic.

It was not clear whether Treasury Secretary Steven Mnuchin would be able to broker a deal with Democratic leaders in Congress by Friday to extend the federal benefit in some form.

Without providing specifics, Trump said, "We'll do something. We're going to take care of the people."

Mnuchin left a late-afternoon meeting with House of Representatives Speaker Nancy Pelosi and Senate Democratic Leader Chuck Schumer telling reporters, "We have a lot of work to do." Their meetings were expected to continue on Wednesday.

Earlier in the day, McConnell told reporters there was “zero chance” that America can get back to normal without new protections from lawsuits for businesses and schools reopening during the pandemic, provisions for which are included in the Republican bill. Democrats oppose the measures.

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Pelosi later called it a "liability-on-steriods proposal" that made her wonder whether McConnell was serious about reaching a compromise.

The Republican proposal would also give many Americans direct payments of $1,200 each, provide billions in loans to small businesses and support hospitals.

Many Republicans have revolted against the $1 trillion price tag. The House passed a $3 trillion plan in May.

Republican Senator Lindsey Graham (NYSE:GHM) estimated that half the party's 53 members in the Senate could oppose the plan.

Some U.S. stocks dropped as investors worried about the negotiations in Congress and the resurgence in coronavirus cases. (N)

PARTISAN DISPUTES

Many Republicans insist the expiring unemployment payout encourages Americans to stay home rather than go back to work by paying them more than their previous wages. Their proposal would provide a much-reduced weekly payment of $200 until states create a system to provide a 70% wage replacement for laid-off workers.

Democrats said $200 was not enough and would damage the economy.

"People want to work, Republican friends. They just don't have jobs to do it. We're not going to let them starve while that happens," Schumer said.

Democrats also want money for state and local governments, which face multibillion-dollar budget shortfalls, with businesses closed and residents out of work.

"Our residents, our businesses, our families, they need direct federal support now," said Savannah, Georgia, Mayor Van Johnson, one of a group of Democratic and Republican mayors on a conference call with reporters.

U.S. coronavirus cases have passed 4.3 million, with nearly 150,000 people dead and tens of millions out of work.

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Latest comments

almost all the jobs created in the past 10 years have been in the service sector, and those are the ones most affected by the virus. there may be some jobs available but none that the unemployed are qualified for. it's all well and good to say you can pay unemployment insurance because it's a disincentive to working but where are the jobs?
They should concentrate on the $ value first . Because the dept and income ratio of the country is really bad . More like 3rd world . With this little stimulus gonna be hard defend the $ .
yup, dollar is collapsing because of all the printing for their stimulus. But Americans are so patriotic they think dollar cannot lose value, even if it has been doing it year by year...
GOLD calls
$200 would be ON TOP OF state unemployment.
Many people don't make as much as they did WITH $600 on top! What about them? They have to loose everything because the filthy rich Republicans who hate the working poor are out of touch and heartless?
I made $6000 ish a month before I lost my job. With the $600 extra I can survive without having taxes taken out which is digging a nice whole to crawl out of next year. If they reduce it or eliminate it I will be defaulting on my loans and loosing my home/truck/car and damaging my perfect credit with in a month. There are NO jobs. My former employer, the largest in my area, has laid off 60+ people.
Unemployment in EVERY state caps out. The regular rate is less then 1/3 of what I made!
There ARE jobs. Tons of places are hiring. Every place I see in northeast has a sign for hiring.
Y que pasa con las personas que tenemos a los niños en casa y no queremos arriesgarlos llevandolos a las escuelas por que son pequeños?
The Republicans are about to put the last nail in their coffin. They claim to be the party supporting jobs and a strong economy, but they wasted little time shuttering the economy, helping put millions out of work, and now kicking them while they are down.
They just care about the stock market. It’s that simple.
They are trying to help vs buying votes like the left is attempting
 you do realize trump is the left - you know pals with really swell guys like - Putin, Xi, and Kim don't forget Gestapo tactics, lying and bullying!
Even if they arrived at an agreement by the end of this week, they still need to vote, sign, and eventually pass to Trump for signature. Then the money will be collectible, time is ticking... July 31 is the deadline.
Dark times to live in the USA
Say you! This is the best country in god’s green earth!
 sorry, Canada is so much better,
S Throwing out money is not going to solve anything. Sell n95 masks to the public n tell them n95 masks give u 95% protection. Stop using cheap cloth masks since the offer any protection.
Money for many means food, which solves death. Wake up.
what happen to work? I work thrughout this *****
if u dont get handouts u would die. The rest of the world go on. I have to buy my own n95 masks n get to work. Got it
The Democrats released a reasonable plan months ago. this Republican plan doesn't go far enough. Soros is hurting.
In China this kind of decision would have been made promptly without prolonged debate dan fight, which in turn costs to much time and energy to provide aid to economy and people.... LoL
Those politicians are not fighting for the best for their country men, but for their own political agendas...American are put at risk.
hmmmm, I supposed it's true, govt decision making is so much easier when you can just arrest anyone who doesn't like your proposal
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