Trump and Dems are talking, but remain divided on new coronavirus relief
The Trump administration has agreed to begin bipartisan talks on the next tranche of aid money for coronavirus relief, Democratic leaders said on Friday afternoon. But the two parties are still far apart.
Senate Minority Leader Chuck Schumer (D-N.Y.) spoke to Treasury Secretary Steven Mnuchin on Friday morning "during which he agreed to pursue bipartisan talks with the leadership of House and Senate Democrats and Republicans," Schumer said. And Speaker Nancy Pelosi (D-Calif.) also spoke to Mnuchin and recommended "proceeding on a bipartisan basis" in talks on quickly passing an interim relief bill.
But Pelosi also indicated she wasn't backing away from her joint request with Schumer to augment funding for small business with aid to hospitals and local governments and also carve out some of the administration's $250 billion request for small business aid for underserved communities.
Pelosi "reiterated Democrats’ position that the initiative must not solidify the disparity in access to capital faced by many small businesses in underserved areas," said spokesman Drew Hammill. "The Speaker also restated Democrats’ position that the interim package requested by the Administration also include additional funds for state and local governments and hospitals."
Yet President Donald Trump on Friday indicated he and the GOP had no intention of backing down from their insistence that the next relief bill focus narrowly on more money for small businesses harmed by the economic fallout of the nation's coronavirus restrictions. He said he'd approve of the money Democrats are requesting being added in larger, future package already under discussion among congressional leaders.
"I’d rather have that be in Phase 4. I don’t deny it, I think it’s fine," Trump said. "Look, the hospitals need help. You see what they’ve gone through. And the states need help."
The president added that the larger relief package, which Pelosi previously said could top $1 trillion, should include a "payroll tax moratorium" as well as more spending for infrastructure. Lawmakers in both parties have been reluctant to cut the payroll tax.
The latest coronavirus relief bill that would have provided more funds for small businesses stalled in the Senate on Thursday.
"There’s no reason why we can’t come to a bipartisan agreement by early next week," Schumer said. The Senate's next pro forma session is scheduled for Monday.
Senate Democrats blocked Senate Majority Leader Mitch McConnell (R-Ky.) from delivering $250 billion in new money for the Paycheck Protection Program, a $350 billion small-business fund that's expected to run dry next week. Democrats argued that $250 billion in additional money should go toward hospitals and local governments, but McConnell said the Trump administration opposed that effort and blocked the Democratic proposal.
Mnuchin has been acting for weeks as an arbitrator amid the tough partisan combat over the size and scope of congressional relief efforts. Democrats have complained that McConnell made his move on small business without consulting them, while Republicans say Democrats are being unrealistic in insisting on more money and holding up funding for the small-business program that almost everyone in Congress supports.
But the urgency of the dwindling Paycheck Protection Program funds coupled with the fallout from Thursday's clash appears to have opened the door to a new round of dealmaking, though it may take longer than the holiday weekend to work out an agreement.
A Republican familiar with the negotiations said the party is expecting Democrats to come back with a different offer than their $500 billion bill that failed Thursday.
Andrew Desiderio contributed to this report.
