Second round of incentive checks: Leaders struggle to finalize emergency relief deal with COVID-19

WASHINGTON – It’s a moment of rush and wait on Capitol Hill as Congressional negotiators grappled with a nearly $ 1 trillion COVID-19 economic aid package with a handful of snags left. Due to the delays, a weekend session now seems almost certain, and a top lawmaker warned that a government shutdown this weekend cannot be ruled out.

All sides seemed hopeful that the bickering would not derail the legislation, even as the opportunity to announce a deal on Thursday slipped away. After being stalled for much of the day, negotiators reported behind-the-scenes progress Thursday night.

Central elements of a hard-won compromise emerged: more than $ 300 billion in aid to businesses; a federal unemployment benefit of $ 300 a week and extension of soon-expiring state benefits; $ 600 direct payments to individuals; funds for the distribution of vaccines and money for tenants, schools, the postal service and people in need of food aid.

But a temporary financing bill is due to expire at midnight on Friday, and Senate second Republican Senator John Thune said that if there is no deal by then, some Republicans can block a temporary financing account – allowing for a partial weekend shutdown – as a means of ending the keep pressure on the kettle.

SEE ALSO: White House Offer Adds $ 600 Checks to COVID-19 Relief

Lawmakers were told to expect a meeting and vote this weekend.

“We should not treat these talks as routine negotiations to be conducted at the routine pace of Congress,” said Senate Leader Mitch McConnell, R-Ky.,. “The Senate isn’t going anywhere until we get COVID help out the door.”

The hangups include an attempt by GOP conservatives to curb emergency credit programs by the Treasury and Federal Reserve, a democratic demand to eliminate the local government’s alignment requirements for COVID-19-related disaster subsidies, and numerous smaller disagreements over non- pandemic add-ons, lawmakers and aides said.

The delays were not uncommon for legislation of this magnitude and importance, but lawmakers are keen to leave Washington for the holidays and are getting restless.

The pending bill is the first significant legislative response to the pandemic since the historic CARES Act was passed almost unanimously in March, providing $ 1.8 trillion in aid and more generous $ 600 a week bonuses for unemployment benefits and unemployment benefits. $ 1,200 direct payments to individuals.

The CARES legislation was passed at a time of great uncertainty and unprecedented shutdowns in an unsuccessful attempt to thwart the coronavirus, but since then many Republicans focused more on relaxing social and economic restrictions as the key to recovery rather than more through taxpayer funded aid.

Now Republicans are primarily motivated to expand corporate subsidies and some unemployment benefits, and provide money for schools and vaccines. Democrats have focused on greater economic stimulus and more aid for those struggling economically during the pandemic. The urgency was underlined on Thursday by the weekly unemployment figures, which showed that 885,000 people claimed unemployment benefits last week, the highest weekly total since September.

The emerging package falls far short of the more than $ 2 trillion that Democrats demanded for election this fall, but elected President Joe Biden is desperate for an aid package to support the economy and help the unemployed and hungry. While Biden says more economic stimulus will be needed early next year, some Republicans say the current package may well be the last.

“If we address critical needs now, and things improve next year as the vaccine hits the market and the economy picks up again, there may be less need,” said Thune.

MORE: 10,000 Restaurants Expected To Close In The Next 3 Weeks Due To COVID-19

Details were still being worked out, but the measure includes a second round of ‘salary protection’ payments to particularly hard-hit companies, $ 25 billion to help struggling renters with their payments, $ 45 billion for airlines and transit systems, a temporary 15% or thus increasing the benefits of food stamps, additional agricultural subsidies, and a $ 10 billion bailout for the postal service.

Some Democrats also lamented the exclusion of a $ 500 million aid package to help states organize their elections. The money was seen as urgent this summer to help states more safely manage their elections during the pandemic. But now that the election is over, the momentum for the money has faded.

The emerging pack served as a magnet for adding other items, and the two sides continued to exchange offers. It was clear that another temporary bill would be needed to avoid a government shutdown. That probably passed easily, but possibly only at the last minute.

The emerging package would combine the $ 900 billion in COVID-19 aid with government funding of $ 1.4 trillion. Then there are plenty of unrelated add-ons taking a ride, known as “ash and trash” in the credit panel shorthand.

A key candidate is a nearly 400-page water resources law that targets $ 10 billion for 46 Army Corps of Engineers flood control, environment and coastal protection projects. Another possible addition would extend a series of tax breaks that are coming to an end, including one for craft brewers, wineries and distillers.

The rush at the end of the session also promises relief for victims of shockingly high medical surprise bills, a phenomenon common when providers leave insurance company networks.

“It has been vetted very thoroughly,” said Sen. Lamar Alexander, R-Tenn., In retirement over the surprising medical billing measure. That measure, combined with an assortment of other health policy provisions, is delivering savings for federal funding for community health centers.

A major breakthrough happened earlier this week when Democrats agreed to scrap their much-needed $ 160 billion aid package from the state and local government in exchange for abandoning a key McConnell priority: a liability shield for corporations and other institutions such as universities. who fear COVID-19 lawsuits.

The addition of the $ 600 direct payments came after recent approvals from both President Donald Trump and progressives such as Senator Bernie Sanders, I-Vt., And Representative Alexandra Ocasio-Cortez, DN.Y., along with ambitious GOP Senator Josh Hawley . from Missouri. The idea is not very popular in other corners because it is extremely costly and would make money for millions of people who may not need it, but it has tremendous political appeal and proved difficult to stop.

Copyright © 2020 by The Associated Press. All rights reserved.

.Source