Trump Suggests He Could Back Deal to Fund Hospitals in SBA Bill
House GOP Leader Floats Compromise on Depleted SBA Loan Program
(Bloomberg) -- President Donald Trump said he is open to supporting aid to hospitals as part of a deal to renew funds in a depleted program for small businesses, a potential break in the stalemate over more stimulus spending.
“Hospitals have been decimated by this,” Trump said at a White House briefing. “I’m with that all the way, if they want to add hospitals.”
Democrats have sought $100 billion for hospitals and $150 billion for state and local government in exchange for putting another $251 billion into the Small Business Administration’s Paycheck Protection Program, which ran out of money on Thursday. Republicans have proposed simply replenishing the PPP funds and leaving other aid for later legislation.
House GOP leader Kevin McCarthy said earlier Friday he also could accept the hospital aid in a deal, after telling reporters the day before that he wouldn’t even give Democrats a “fig leaf” compromise in exchange for the SBA money. Senate Majority Leader Mitch McConnell hasn’t yet publicly backed the hospital funding, but the assent of Trump and McCarthy signals a significant GOP shift.
House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer have been in talks for days with Treasury Secretary Steven Mnuchin about the PPP extension, and Schumer said earlier Friday that the talks are expected to go into the weekend.
Pelosi, Schumer and Mnuchin had been discussing the possible inclusion of $75 billion in aid for hospitals in their negotiations, according to a Democratic aide familiar with the talks. But there are additional differences that still will have to be worked out before Congress acts.
Schumer Friday continued to make the Democrats’ case for a package that would go beyond the added funding for small-business loans, specifically mentioning the hospital funding.
“You need it to be a little more comprehensive than giving money just to one small business program,” Schumer said on MSNBC.
Schumer also said talks between congressional Democratic leaders and Mnuchin have been “productive.”
“I don’t see any reason we can’t come to an agreement soon,” he said.
On Thursday, McCarthy told reporters he would not be opposed to sending more money for hospitals when existing sources of funding are exhausted. But he said that aid had not yet expired and that the focus should be on the small business aid.
“That’s fine when we talk about the next bill and I am more than willing to discuss that, if hospitals need more in the future,” McCarthy said. “But money is being sent to them now.”
McCarthy has said he would support more money for the depleted SBA Economic Injury Disaster Loan in the new legislation, a step called for by Democrats and Republicans.
McConnell on Thursday called on Democrats in Congress to back down in their demands for funding beyond the PPP.
“Americans need Democrats to stop blocking emergency paycheck money and let this job-saving program reopen,” he said on the Senate floor.“I hope our colleagues will come around soon.”
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