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Coronavirus relief deal in Congress slips to Sunday as new funding deadline looms

Published 12/19/2020, 12:21 AM
Updated 12/19/2020, 09:40 PM
© Reuters. The U.S. Capitol dome is seen at night in Washington

© Reuters. The U.S. Capitol dome is seen at night in Washington

By Patricia Zengerle and David Lawder

WASHINGTON (Reuters) -U.S. lawmakers struggled on Saturday to clear final hurdles to a $900 billion coronavirus aid bill, including a dispute over Federal Reserve emergency lending authorities, pushing any deal closer to a Sunday night government funding deadline.

The U.S. Senate adjourned a rare Saturday session with a call from Senate Republican leader Mitch McConnell to avoid last minute disagreements that could delay new funding for Americans and small businesses struggling with the steep economic and health costs of the COVID-19 pandemic.

"The American people cannot feed their families with, or pay their bills with, Congress' good-faith discussions. They need us to act," McConnell said on the Senate floor. "We need to conclude our talks, draft legislation and land this plan."

Both Republicans and Democrats said the last major sticking point was a Republican push, led by Senator Patrick Toomey of Pennsylvania, for language to prevent expiring Fed coronavirus lending programs from being revived, including credit facilities for mid-size companies and municipal borrowers.

The dispute threatened to cause a breakdown in the negotiations as Toomey was seen having a heated discussion with a small group of colleagues on the Senate floor.

But after a meeting with Senate Democratic Leader Chuck Schumer, Toomey said he did not have a time frame, but "I think that we should be able to get a deal done."

Senator Bill Cassidy, a Louisiana Republican, told reporters that a possible compromise may be emerging to narrow the focus of Fed language, although he did not provide details.

Republican opponents said Fed lending facilities created under coronavirus aid legislation passed in March are unnecessary government interference in private business and politicizes the Fed. They accused Democrats of wanting to extend them into 2021 as a backdoor way to provide unchecked funds for state and local governments controlled by members of their party.

Democrats in turn accused the Republicans of trying to tie the Fed's hands in order to limit Democratic President-elect Joe Biden's options for boosting the flagging economy after he takes office on Jan. 20.

The administration of Republican President Donald Trump, who insists Biden did not win the Nov. 3 election and talks of running again in 2024, said it supports the Toomey initiative.

'RIGHT WITHIN REACH'

Other lawmakers said that most major issues appeared to have been resolved. The legislation is expected to include one-off $600 checks for most Americans, enhanced unemployment benefits of $300 per week, help for states distributing coronavirus vaccines and more assistance for small businesses.

"We're right within reach," Democratic House of Representatives Speaker Nancy Pelosi told members of her party on a call discussing the negotiations, according to a person who was on the call.

Lawmakers are under intense pressure to finish the relief package before a midnight Sunday (0500 GMT Monday) expiration of federal spending authority after a 48-hour reprieve was passed on Friday to buy more negotiating time.

Congressional leaders plan to attach the package to a $1.4 trillion spending bill funding the government through September 2021.

Congress in the spring approved more than $4 trillion in aid, but many of the funds for unemployed workers and small businesses have run out, pushing unemployment higher as COVID-19 has killed 311,000 Americans, by far the most in the world. Economists say growth will likely remain sluggish until vaccines are widely available in mid-2021.

Lawmakers were not sure when a deal would be announced, but no vote was expected before Sunday afternoon. John Thune, the Senate's No. 2 Republican, said the vote could slip to Monday.

"We're on the home stretch, we're on the glide path and I think we're going to get this done, and help out the American people," Thune said.

Some other lingering issues on Saturday were disagreements over funding for arts venues closed by COVID-19 restrictions, and the level of emergency money for local governments for supplies like personal protective equipment for schools.

© Reuters. FILE PHOTO: The U.S. Capitol dome is seen in Washington

The deal does not include liability protections for businesses from coronavirus-related lawsuits, a provision pushed by Republicans that has long been unacceptable to Democrats. Nor does it include the extensive aid to state and local governments Democrats wanted.

Latest comments

latest word is Toomey and Schumer have reached agreement to pass the bill!
latest word is Toomey and Schumer have reached agreement to pass the bill!
there will be last minute deal Wednesday evening
Hurry up and send me my $1,200 bacon....
Bevan Shields December 20, 2020 — 2.37am Save Share London: A mutated coronavirus strain up to 70 per cent more transmissible than earlier versions is spreading rapidly across Britain, shattering the Christmas plans of tens of millions and stoking fears of a major third wave in Europe.
To Matt Goodwin — LOL, Tweetie Bird!
Injecting more poison and distortion into the economy
Who cares just making some big money trading
u can really smoke.
We're on the home stretch  .....,  more like a soapseries ....
democrats love shutdowns. look for many shutdowns to come during this upcoming presidency
Like under the trump administration going for his 3rd in 4 years.
what? trump fans were assuring that dems love shuttdowns at presedency of trump to kick him out. Now when the job's done, the virus still exists.
Five alarm national crisis?! LOL! More like 5 alarm plandemic that Congress will never confess.
To Jimmie Bell....when LBJ declared his “war on poverty,” you misunderstood. He didn’t mean you personally would be under seige because you were living in poverty. He meant it as a means to END poverty! Unfortunately, apparently it didn’t work in your case. The way I figure it, you’ve now been impoverished for the better part of 56 years! Not just financially, but mentally as well....
Are you rewriting history, Jimmie? Nixon is the one who made a mockery out of Vietnam! From what I read Nixon kept bombing innocent people, which caused Americans to DEMAND withdrawal of all US troops. WHICH HE DID! The worst US presidents ever: #1 Trump #2 Nixon #3 GW Bush #4 Buchanan. You don’t like insults, Jimmie? Then why did you vote for Donny Boy? You must be yet one more Donny lover who ticks all the boxes: old, obese, poor, bald, and Republican. See. No insults by me. Just truths! Old, obese, poor, bald, and Republican. Yep, that’s the Donny voter profile....in that order!
do you democrats realize how toxic you are? You spread your filth every city you populate, and the worst part is you pretend to be the good guys.
LOL, Tweetie Bird!
Kaveh....Let the record show that the GOP under Donny has printed more fake money than anyone in US history!! And Donny has sent 310,000 Americans to their graves in the process. You, my boy, are a fraud!
So true!
So true!
The plan is to hand out dollars, which are essentially pledges that American citizens will work, and then not allow American citizens to work.
Hmmmm. Smells like a big scam :)
Dems have no money concept. They will print unlimited amount all the time if they r in total control.
FRAUD!
Useless Gov, *****themselves. Shut down forever. Stimulus hope everyday,
Economy gets back to normal when folks return to work. However, dems prefer situation when folks sit at home and collect government checks, call it stimulus or welfare, whatever. Dem party feeds on culture of dependence on Big Brother.
Could not agree more. Only way to resolve this mess is get people back to work, but this is all part of the “great reset.”
If they do not reached a deal by 12:01 a.m. ET Monday morning, the government will shut down. See you next year!
 Yep. It was “War on poverty” that gradually and naturally transformed to war on wealth.
 LBJ, Lebron James? LBJ is a GOAT, don't you dare!!!
LBJ is Lyndon Baines Johnson president in late 1960s. doh...
Do nothing is Da best thing for American people. We don't need you!
I would prefer if we could stop paying them too.
If congress doesn’t pass anything before Christmas, you guys will all see protests across the US that make BLM look like a tea party.
I can't understand you at all. Good Morning
The beneficiary here is Americans the fact of not wearing protective masks to fight against an air born pandemic while senators are still not aware or they don't mean what they're talking about in there speeches . The damage to the unity is beyond repair . Not Wearing masks by Senators was a wrong choice if they are devoted to U.S. A but they are been devoted to a man . The division will never be fixed
keep the checks coming from the away something work out in the future will all stocks come mankind supplement of money
Huh?
It seems Tom might have misspelled his last name, looking at that amazing sentence structure. lol
lol
My fellow Americans, How long would it take you think for these politicians to approve themselves a raise?
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