Virus Relief Bill on Hold as Pelosi Negotiates With Mnuchin
Trump Says He Won’t Back Virus Bill With Democratic ‘Goodies’
(Bloomberg) -- House Speaker Nancy Pelosi and President Donald Trump’s Treasury secretary haggled by phone throughout the day Thursday in a search for a compromise on emergency legislation to alleviate some of the economic pain of the escalating coronavirus outbreak.
A vote on a package of Democratic proposals, including emergency paid sick leave, enhanced unemployment benefits, and free coronavirus testing, was delayed while the negotiations went on. Pelosi and Steven Mnuchin talked five times as both sides looked for a way to get support in the Republican-controlled Senate and from the president.
Democrats were still holding out hope that the legislation could get a vote in the House before the end of the day.
With schools, businesses and sports teams shutting down across the country, Senate Majority Leader Mitch McConnell said the Senate will stay in session next week, rather than leaving Washington as previously planned, to take up any legislation that emerges from the negotiations.
“I am glad talks are ongoing between the administration and Speaker Pelosi,” McConnell tweeted Thursday. “I hope Congress can pass bipartisan legislation to continue combating the coronavirus and keep our economy strong.”
Trump on Thursday objected to what he called Democratic “goodies” in the bill that House Democrats introduced late Wednesday. An administration official said the objections included increasing federal funding for Medicaid and changes that the White House said could provide money for abortions. Republicans in Congress had their own issues, including any step that would permanently mandate businesses provide paid sick leave.
“There are things in there that have nothing to do with what we’re talking about,” Trump told reporters during an appearance with the Irish prime minister. “So, it’s not a way for them to get some of the goodies that they haven’t been able to get for the last 25 years.”
Before Trump weighed in, Pelosi had told reporters that Mnuchin’s proposed changes were “very reasonable.”
The House proposal is the only viable bill that has been introduced in Congress this week to deal with the coronavirus, and it will either be a partisan opening bid in talks with the Senate or a bipartisan compromise that actually has a chance to become law.
“We’re here to pass a bill. When we pass a bill we will make a judgment on what comes next,” Pelosi told reporters. She gave no indication that she would keep Congress in session past Thursday, declining to comment on “travel arrangements.”
“Let us get this bill passed first,” Pelosi said.
House Republican Leader Kevin McCarthy told reporters he opposes the Democrats’ proposal but wants to stay in Washington for another day or two to work out an agreement. Congress should try to do now what Republicans and Democrats can agree on and put off “bigger things” for later, he said.
“I believe there are big things that will take more time,” McCarthy said. “Let’s do what we can do together right now. We can work on the big things” in the next few weeks. “It is critical that we get a small portion of this done right now.”
McCarthy also said the estimated $50 billion increase for federal Medicaid in the Democrats’ bill should be left out for now.
The White House also objects to the level of federal Medicaid funds used to cover coronavirus testing of uninsured people, according to the administration official. The White House also shares GOP concerns about federal resources going to providers who perform abortions, the official said.
One of the main sticking points for Republicans in the Democrats’ bill is the requirement that employers provide paid leave, according to South Dakota Senator John Thune, a member of Republican leadership.
‘Hard Sell’
“That’s something being discussed between House leadership and the White House,” Thune said. “If you mandate on employers paid leave that’d be a hard sell.”
McCarthy and others said there should be an option to exempt some businesses from a paid leave mandate, and that such a measure should include a sunset clause. The U.S. Chamber of Commerce, the biggest business lobby, also objected to the Democrats’ plan in a letter to Congress on Thursday.
Republicans said assistance for workers should be administered through a tax credit, similar to the employee retention credit used during other disasters, according to a GOP aide.
Senator Rob Portman of Ohio, a senior Republican on the Finance Committee, said after a meeting of all Senate Republicans that the coronavirus bill proposed by House Democrats has many acceptable provisions, including food stamp and unemployment insurance increases.
“Most of them would be acceptable over here I think,” he said.
Portman said the paid sick leave provision, though, would have problems in the Senate. He said he’s in talks with the White House about ideas to change it and is hopeful they could be implemented even before the House acts to speed things along.
Read More: Coronavirus Tracker: Global Cases 131,445; Deaths 4,932
If House Democrats pass their bill Thursday, that will put pressure on the Senate to come up with a more specific counter-proposal. Republicans thus far have largely advocated waiting to more fully understand the economic consequences of the global health crisis before proposing their own fiscal measures.
Republican Senator Roy Blunt said if the House and the Trump administration can work out a deal, the Senate should be able to pass something early next week. However, if the Senate changes the measure at all, the House would have to pass it again before sending the bill to Trump for his signature.
Trump, in his Oval Office speech to the American people Wednesday night, asked Congress to cut the payroll tax, but even Republicans in Congress have been cool to that idea, and McCarthy said measures like that could come later if needed.
--With assistance from Saleha Mohsin, Justin Sink, Jack Fitzpatrick and Josh Wingrove.
To contact the reporters on this story: Erik Wasson in Washington at ewasson@bloomberg.net;Laura Litvan in Washington at llitvan@bloomberg.net;Billy House in Washington at bhouse5@bloomberg.net
To contact the editors responsible for this story: Kevin Whitelaw at kwhitelaw@bloomberg.net, Laurie Asséo, Anna Edgerton
©2020 Bloomberg L.P.