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Republicans unveil coronavirus plan, slash emergency unemployment benefit

CoronavirusJul 27, 2020 10:30PM ET
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2/2 © Reuters. Treasury Secretary Mnuchin and White House Chief of Staff Meadows attend meeting to discuss coronavirus aid legislation at the White House in Washington 2/2

By Susan Cornwell and David Lawder

WASHINGTON (Reuters) - Senate Republicans on Monday proposed a $1 trillion coronavirus aid package hammered out with the White House, paving the way for talks with Democrats on how to help Americans as expanded unemployment benefits for millions of workers expire this week.

Senate Majority Leader Mitch McConnell called the proposal a "tailored and targeted" plan focused on getting children back to school and employees back to work and protecting corporations from lawsuits, while slashing the expiring supplemental unemployment benefits of $600 a week by two-thirds.

The plan sparked immediate opposition from both Democrats and Republicans. Democrats decried it as too limited compared to their $3 trillion proposal that passed the House of Representatives in May, while some Republicans called it too expensive.

McConnell said the package would include direct $1,200 payments to Americans, as well as incentives for the manufacture of personal protective equipment in the United States, rather than China.

It also includes $190 billion for loans to help small businesses, and $100 billion for loans to businesses that operate seasonally or in low-income areas.

Republicans want to reduce the expanded unemployment benefit from the current $600 per week, which is in addition to state unemployment payments and expires on Friday, to $200 in addition to state unemployment.

After two months, states would implement a new formula that replaces about 70% of lost wages.

The supplemental unemployment has been a financial lifeline for laid-off workers and a key support for consumer spending. The extra funds - exceeding the former wages of some workers - have been a sticking point for many Republicans, who say they encourage Americans to stay home rather than go back to work.

Democrats, in turn, have criticized the Republican delay in writing more legislation as confirmed U.S. coronavirus cases passed the 4 million mark. The pandemic has killed nearly 150,000 people in the United States.

Negotiations started immediately after the Republican package was introduced. House Speaker Nancy Pelosi and Senate Democratic Leader Chuck Schumer met for nearly two hours with Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows.

Meadows said afterwards that it was a "good meeting" and that he and Mnuchin would return to Capitol Hill on Tuesday. But Pelosi and Schumer, speaking to reporters, expressed frustration that items like rental and food assistance had been left out.

"We hope that we would be able to reach an agreement. We clearly do not have shared values. Having said that, we just want to see if we can find some common ground to go forward. But we’re not at that place yet,” Pelosi said.

LIABILITY PROTECTIONS AND DEFENSE SPENDING

The Republican-led Senate refused to consider the House coronavirus relief bill, known as the "HEROES Act," that was passed in May.

McConnell on Monday called the House bill a "socialist manifesto" and urged Democrats to work with Republicans on their plan, the "HEALS Act."

"We have one foot in the pandemic and one foot in the recovery," McConnell said. "The American people need more help. They need it to be comprehensive, and they need it to be carefully tailored to this crossroads."

The proposal included "strong legal liability protection" for corporations, a top Republican priority.

It includes nearly $30 billion for the military and defense industry, in addition to nearly $760 billion already enacted for defense this year - including more than $10 billion in previous coronavirus relief bills.

Opposition from some of McConnell's fellow Republicans, as well as from Democrats, signaled a tough road ahead.

"The answer to these challenges will not simply be shoveling cash out of Washington. The answer to these challenges will be getting people back to work," Republican Senator Ted Cruz told reporters.

Some Republicans had complained about the high price tag. The federal government has already spent $3.7 trillion to cushion the economic blow from pandemic-forced shutdowns.

Schumer said the Republican plan did too little, too slowly, to help Americans facing joblessness and eviction. "The Republican plan is weak tea, when our problems need a much stronger brew," Schumer said.

He said many states had warned they would have a hard time implementing unemployment changes. Many Americans waited weeks for previous coronavirus benefits, as outmoded state computer systems adjusted.

The Republican proposal also includes measures not directly related to the COVID-19 outbreak, including $1.8 billion for construction of a new FBI headquarters in Washington, something championed by President Donald Trump, who owns a hotel across the street from the current building.

Republicans unveil coronavirus plan, slash emergency unemployment benefit
 

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Comments (30)
Ed Spal
Ed Spal Jul 29, 2020 6:05AM ET
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Why democrets do anything, let the economy go bust and so will trump ,
Sri Tekumalla
Sri Tekumalla Jul 28, 2020 3:23AM ET
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Lazy person's lazy writing with a lazy attitude.
Rodolfo Barraco
Rodolfo Barraco Jul 28, 2020 12:35AM ET
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How china destroyed the west doing nothing?? China created the oax of a flue. China clearly stated only few cases and almost no deads. The west enters panic mode counting every respiratory dead as covid. Respiratory Dead numbers are the same as any other year(check stadisrtics of any country), yet the west jumps to the abbys of endless quarentenes desrroying economy and future. China wins... great job!
Silverbug 19
Silverbug 19 Jul 27, 2020 11:09PM ET
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Reuters sounds panicked.
Me comment
Me comment Jul 27, 2020 9:12PM ET
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Reuters update the article not just the headline.
Zhehui Liu
Zhehui Liu Jul 27, 2020 9:06PM ET
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if not wear mask, no business, no job, no money
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Kaveh Sun
Kaveh Sun Jul 27, 2020 9:06PM ET
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Jay West Cloth masks dont give u protection however the limit ur ex pell droplets. A cough, sneeze can travel 10-22ft without any masks. The 6ft calculation is deadly wrong
Cornel Pod
Cornel Pod Jul 27, 2020 9:06PM ET
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Really do some research about the size if a CV19 virus and the kmesh size of a mask. I believe it can get throught like a bird in between goal posts.
Kaveh Sun
Kaveh Sun Jul 27, 2020 9:06PM ET
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Cornel Pod https://smartairfilters.com/en/blog/can-masks-capture-coronavirus/
Kaveh Sun
Kaveh Sun Jul 27, 2020 9:06PM ET
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Cornel Pod like i’ve been saying like forever: use n95 or medi masks. This has been known for a long time that those 2 kinds r the best for ur own protection.
Kaveh Sun
Kaveh Sun Jul 27, 2020 9:06PM ET
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Cornel Pod u have multiple layers crosses, each layer filter 2.5pm out. N95 has more layers (ie thicker) than medi masks. Therefore it is more efficient. Cloth masks r anywhere from 20pm to 1000pm. The higher sheet density is the better. Problem is the higher density is the more difficulty for u to breath.
Poonjikarthikeyan Bakthar
Poonjikarthikeyan Bakthar Jul 27, 2020 7:57PM ET
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It's unveiled already or yet to be done?? The day is to be over.
Jay Sheeley
Jay Sheeley Jul 27, 2020 7:55PM ET
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Most of the small businesses that shut down are not gonna reopen or are already closed for good. where are all the millions of jobless people going to get a job? Forcing people to find jobs that don't exist is cruel and will cause mass poverty eventually leading to another housing market crisis.
Joe Bitman
Joe Bitman Jul 27, 2020 7:55PM ET
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History is crystal clear showing that paying people not to work is the most cruel thing a government can do. Oh and the local govts making it illegal for businesses to operate over a lie scare is pretty cruel too and they cant empirically prove that ANY NET lives were saved over the shutdown
Jay West
Jay West Jul 27, 2020 7:55PM ET
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You are spot on. Period.
James Marshall
James Marshall Jul 27, 2020 7:09PM ET
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if you vote Democrat, you are asking for more jobless and more pain.
ROBERT MARTINEZ
ROBERT MARTINEZ Jul 27, 2020 7:09PM ET
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your brain washed by Trump, "white house", repilublicans and FOX NEWS! GET EDUCATED!
William Slattery
William Slattery Jul 27, 2020 7:09PM ET
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Ok boomer
Dan Hodel
Dan Hodel Jul 27, 2020 7:09PM ET
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Why does the market collapse every time a republican is in office?
Dutch East
Dutch East Jul 27, 2020 6:56PM ET
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the government, it's states and it's so called health agency ordered businesses to shut down and ordered the citizens to "shelter in place", wear masks etc. Since the government ordered the shut down then the government must pay both the people and the business all the money they lost as a result of the government's order.it Is that simple.
eddie glass
eddie glass Jul 27, 2020 5:27PM ET
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i guess they should stop looting and rioting and go fill out job applications then
ROBERT MARTINEZ
ROBERT MARTINEZ Jul 27, 2020 5:27PM ET
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tell that to the republicans, gun control and kkk protesters that were protesting to open restaurants, bars, gyms, beaches, schools ect.. ect... what about those protesters????
James Gomez
James Gomez Jul 27, 2020 5:27PM ET
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He said Rioters and Looters, not protestors. And around in circles we go with misinterpreting terminology. That's a sign of selective reading and hearing but only Republicans are brainwashed though....I forgot
Ed Kutch
Ed Kutch Jul 27, 2020 5:27PM ET
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Thought most kkk protesters were democrats... ie: Grand Whizzar congessman Robert Byrd
ROBERT MARTINEZ
ROBERT MARTINEZ Jul 27, 2020 5:27PM ET
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James Gomez you don't get it...lol
ROBERT MARTINEZ
ROBERT MARTINEZ Jul 27, 2020 5:27PM ET
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Ed Kutch you thought wrong!
Real Bull
Real Bull Jul 27, 2020 5:04PM ET
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Wear a mask and Get to work people !!Healthcare professionals have been working throughout the pandemic so you aren’t from Mars ...Enough of you enjoying the free tax payer money ... Dems need to agree as if they wont then clear indication that they wanna ruin economy and give no importance to folks who risked lives at front lines...Now get to work and let the economy rolling !
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ROBERT MARTINEZ
ROBERT MARTINEZ Jul 27, 2020 5:04PM ET
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guess what, the virus is not a hoax! I kno thats what tramp and fox news reports, but some of us are smart enough to kno the truth.. so I WONT be demanding to open up businesses! if anything ILL be supporting a COMPLETE SHUT DOWN, UNTILL REAL LEADERS TAKE OVER AND REALLY TAKE CONTROL OF THIS VIRUS!!! I DONT CARE ABOUT YOUR JOB, MORE THAN I DO MY HEALTH! SO SORRY, BUT OH WELL...
Jozef Drozd
Jozef Drozd Jul 27, 2020 5:04PM ET
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ROBERT MARTINEZ it is fo.... hoax !!!!!!!!!!!!!
Rodolfo Barraco
Rodolfo Barraco Jul 27, 2020 5:04PM ET
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ROBERT MARTINEZ i bet you believe in the flat earth too. How naive can people be. Check stadistics. Desd people for covid equals respiratory deads in any given year.... sheep so easy to manipulate
ROBERT MARTINEZ
ROBERT MARTINEZ Jul 27, 2020 5:04PM ET
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Rodolfo Barraco then you must be sheep
Aidel Haikal Azmi
Aidel Haikal Azmi Jul 27, 2020 5:04PM ET
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Seriously you american people are something special arent you? Look at asian countries and how they deal with it. You guys talked too much but no actions. What a joke.
Thom Miller
Thom Miller Jul 27, 2020 10:51AM ET
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Now that the GOP has totally destroyed the robust US economy that President Obama and VP Biden handed them in early 2017, let’s see how they go about getting the roaring train back on the tracks. So far it seems to have been left in the station with 147,000 dead passengers on board....
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Erski Gumby
SB20 Jul 27, 2020 10:51AM ET
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Thom Miller Dont worry. They’re only thumbs down. Don’t let it affect you too much.
Carlos Duffoo
Carlos Duffoo Jul 27, 2020 10:51AM ET
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Snowflake ThommyYou are irrelevant
kevin smith
kevin smith Jul 27, 2020 10:51AM ET
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Manufacturing and oil jobs came through Trump. Jobs make a good economy. Manufactuing lostnover 200,000 jobs woth Obama and have added 500,000 with Trump. It is trulu scary that one really believes those comments about an Obama economy. Fact of the slowest recovery ever under Obama is a fact. Please take the time to educate yourself.
Logan Billin
Logan Billin Jul 27, 2020 10:51AM ET
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It only took 3 years after him and a complete reversal of his policies...but yeah economic highs were totally due to Obama lol
ROBERT MARTINEZ
ROBERT MARTINEZ Jul 27, 2020 10:51AM ET
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YOU SHOULD SERIOUSLY TAKE YOUR OWN ADVICE AND EDUCATE YOURSELF!
rob finch
rob finch Jul 27, 2020 10:43AM ET
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All the jobs went to China. Now all the Americans are unemployed or on welfare. It seems more expensive this way. Anything we save on cheap Chinese labor gets paid out to the guy that doesn't have a job now.
Luu Hung
Luu Hung Jul 27, 2020 10:00AM ET
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And this free money will go straight to stocks market to push it to new ATHs
Plopseven Schwartz
Plopseven Schwartz Jul 27, 2020 10:00AM ET
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You know benefits are being cut by 60-70% right? God, this feels like 1984 with the chocolate rations!!
Bill Riley
Bill Riley Jul 27, 2020 9:36AM ET
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How is it possible to get paid more on unemployment than you were making when employed, Democrats want everyone on unemployment benefits, crazy
Jacob Lentz
Jacob Lentz Jul 27, 2020 9:36AM ET
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its because the state computer systems cant handle the load as is and if unomployment is changed to 70% it would over load the system and by some estimates delay new checks by 7 weeks
Unoqueva Alguno
Unoqueva Alguno Jul 27, 2020 9:36AM ET
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Where do you live? In the 3d word? It is unbelievable that this happens in the US. You want me to think that they have to pay more because the system can not process data correctly? This is a joke?
Thom Miller
Thom Miller Jul 27, 2020 9:36AM ET
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Sorry, but that was a well-documented GOP idea from last spring. Nice try....
Jeremy Williams
Jeremy Williams Jul 27, 2020 9:36AM ET
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So your ok with government bailing out endebted compainies and pumping the stock market but not helping people who truly need it? You do realize that these people are spending that money and in turn helping the economy? So you want a president who has filed multiple bankrupticies to bail out companies that should go bankrupt due to terrible business plans using taxpayer money instead of real people with real problems?
Plopseven Schwartz
Plopseven Schwartz Jul 27, 2020 9:36AM ET
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Because the GOP has stalled a living wage for Americans since the 1970s.
James Hilton
James Hilton Jul 27, 2020 9:31AM ET
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This'll work... Try attempting to fix the actual problem instead of money bandaids, and you'll need less of them.
Warren Bluffet
Warren Bluffet Jul 27, 2020 9:09AM ET
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600$ unemployment bonus is outrageous to everyone working in the US. The Democrats have lost all common sense.
Thom Miller
Thom Miller Jul 27, 2020 9:09AM ET
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Nice try....the $600 unemployment kicker was a well-documented GOP demand!
Plopseven Schwartz
Plopseven Schwartz Jul 27, 2020 9:09AM ET
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Look at the dollar index since the 1970s. Republicans have stagnated wages since the 1970s and this is what people should have been earning the whole time.
Me comment
Me comment Jul 27, 2020 8:29AM ET
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Repos think there delaying a bill will force there way, but only makes them look irresponsible again.
Michael Angelo
Michael Angelo Jul 27, 2020 8:28AM ET
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This is the economy that meets the politics. If they don't give some help (some not $600) many won't consume and affect the economy. Risks are many, inflation, diluting dollar power, deficit, etc. But unfortunately is needed, some and for a couple of months. We'll have to live with the effects. Democ. or Rep. no matter.
Unoqueva Alguno
Unoqueva Alguno Jul 27, 2020 8:28AM ET
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You don't deserve money that you don't produce. It is that simple. It is reasonable to help people for basic stuff but 2400 dollars a month! 2400 dollars!!! 2400 *&@! Dollars!!! You have lost your mind in the US.
Santi Abente
Santi Abente Jul 27, 2020 8:28AM ET
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Unoqueva Alguno  yes im agree, im form argentina and our socialist president give un 10.000 pesos x month (is less than 100 dollars) but it throw economy to the toilet, i know we`re a 3r world economy but US also cant afford $2400.
Jesse Mulliniks
Jesse Mulliniks Jul 27, 2020 8:27AM ET
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We’ve already spent $3 trillion let’s keep going USA number 1!
Nison Kay
Nison Kay Jul 27, 2020 7:50AM ET
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Democrats are spending Monopoly money. anything to buy the election. they don't care about anything else.
Edward Chong
Edward Chong Jul 27, 2020 7:50AM ET
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yeap. they will do anything to win this round.
Jesse Mulliniks
Jesse Mulliniks Jul 27, 2020 7:50AM ET
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Uh... the republican administration just dropped $3 trillion and sent people free money so it’s not really a specific side doing it it’s the entire government
Santi Abente
Santi Abente Jul 27, 2020 7:50AM ET
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completly agree
Andrew carson
Andrew carson Jul 27, 2020 7:47AM ET
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No $600 for anarchists. The DNC should have to pay them out of pocket.
Joseph Accetturo
Joseph Accetturo Jul 27, 2020 7:47AM ET
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dollar to get killed. this is the very definition of inflation. new money for free.
Lawrenti Berija
Lawrenti Berija Jul 27, 2020 7:47AM ET
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the writing has been in the wall 10 years or so - it seems the letters are large enough for everyone readable
Zach Lohman
Zach Lohman Jul 27, 2020 7:47AM ET
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Already has, look at the dollar chart against gold, the swiss franc, yen...etc.
Peemil Nicho
Peemil Nicho Jul 27, 2020 7:32AM ET
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many country open their economy except...
Thor Gao
Thor Gao Jul 27, 2020 7:32AM ET
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pandemic is under control in many countries except… that’s why they open economy
 
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