Congress ready to fight as unemployment cliff looms

Congress is moving toward a showdown over federal unemployment benefits, with millions of Americans in the balance.

As part of the March $ 2.2 trillion coronavirus bill, Congress agreed to a $ 600 per week increase in unemployment benefits, but they will begin to expire in a matter of days.

Replacing it is shaping up to be a shock as lawmakers and the White House prepare to negotiate the fifth coronavirus bill.

“What will happen on Saturday, all the pain, all the suffering … didn’t have to happen,” said the senator. Ron WydenRonald (Ron) Lee Wyden Democrats hit home secretary for refusing to wear a mask in a meeting with tribes Co-Chairs of the Diabetes Caucus say the expansion of telehealth to continue beyond the pandemic Mnuchin says the Republican Party has “fundamental” agreement on coronavirus relief package T MORE (Pray.), The top Democrat on the Finance Committee, said of the upcoming deadline.

The statistics are compelling: 1.4 million Americans applied for unemployment insurance last week, according to Labor Department data released Thursday, the first increase since March. Approximately 32 million Americans are unemployed and the national unemployment rate is just over 11 percent.

But a lapse in current federal benefit seems inevitable.

Both the White House and the Speaker of the House Nancy PelosiNancy PelosiPelosi says Trump’s decision to reverse the fair housing rule is a “betrayal of our nation’s founding values.” The Trump administration sending a border tactical team to Seattle Trade negotiations must not interrupt internal debate PLUS (D-Calif.) They say they want a deal by the end of next week, when benefits drafted as part of the March bill will expire. But Congress is almost guaranteed not to meet that deadline; Republicans won’t reveal their coronavirus proposal until early next week, and bipartisan negotiations on the next package are largely non-existent.

Even if Congress somehow accomplished that Herculean task, chances are they are already out of time to avoid a lapse: given that the end of the month falls on Friday, states would need an extension before July 25 or July 26. to fully cover the last week of July, which runs through August.

And the two sides remain far apart on what to replace the more than $ 600 a week, underscoring the difficulty of getting a quick deal.

treasury secretary Steven MnuchinSteven Terner MnuchinSenate GOP Releases Coronavirus Package Next Week On The Money: Mnuchin Says GOP Has “Fundamental” Agreement On Coronavirus Relief Package T | Inside the republican stimulus proposal | Weekly jobless claims rise to 1.4 million Trump blames Democrats after Republican Party rejects payroll tax cut MORE He told reporters that the next Republican proposal, which was expected to be released on Thursday but reduced to Monday, will provide a salary replacement of approximately 70 percent compared to what an individual was doing before being fired until the end of year.

“We are not going to extend it in a scenario where we are paying more people to stay home than to work. I think it is a concept that every American understands. This is about wage replacement. And we don’t want to incentivize people not to work. So we are going to extend it on the basis of salary replacement, it is approximately 70 percent of salary replacement. We are dealing with the mechanical problems associated with that, ”Mnuchin said.

Republicans have promised to end the $ 600 per week lump sum, but have struggled to figure out how to replace it, some want to reduce it and others want to eliminate it. Others suggested tying it to an individual’s salary.

“We … intend to continue a temporary federal supplement to unemployment insurance, while also solving the obvious folly of paying people more to stay out of the workforce,” said the majority leader. of the Senate Mitch McConnellAddison (Mitch) Mitchell McConnellSenate GOP Criticizes Coronavirus Package To Pelosi Next Week, McConnell Announces John Lewis Lying In State Overnight Defense: Senate Passes Annual Defense Policy Act That Caused Trump’s Veto Threat | The military has considered two exemptions for transgender troops since the MORE ban (R-Ky.) About what the Republicans will propose.

But it’s not clear if state offices could quickly implement a plan like the one Republicans are offering. States have already struggled to implement the $ 600 increase included in the March bill, and some states reported long delays in dispensing unemployment benefits.

Several state unemployment agencies confirmed to The Hill that their ability to quickly change a new unemployment benefit payment system remained limited. Some said it could take weeks, while others said it could take six to nine months.

Wyden, who negotiated the $ 600 per week increase in March, said that based on talks with the Labor Department, state unemployment offices will not be able to carry out the Republican plan.

“Secretary Scalia said it can’t be done,” he said, referring to the Secretary of Labor. Eugene ScaliaEugene Scalia – The Hill’s Morning Report – Featured By Facebook – Miami Stops Reopening As COVID-19 Infections Rise, Schools Plan Nationwide Return On Sunday Shows – FDA Commissioner Refuses To Confirm Claim from Trump that 99 percent of COVID-19 cases are ‘harmless’ job secretaries: I think we can safely reopen our workplaces’ MORE.

“Impossible. Bronze Age technology. … Everything you’ve talked about so far, based on Secretary Scalia’s comments, can’t be managed, okay? Wyden said.

Mnuchin replied that the Treasury has been working through “mechanical” problems, including communication with states, acknowledging that “some states can implement this quickly, some states will take time.”

In the worst case, he added that he was working on a backup plan, but did not provide details.

Democrats are proposing to extend the $ 600 per week benefit until the end of the year.

“I’m all for $ 600 because people really need it. “I’m going to the table with the $ 600 pledge,” Speaker of the House of Representatives Nancy Pelosi (Democrat of California) told reporters on Thursday.

The White House is already signaling that if Congress can’t come to an agreement on a bigger coronavirus package by the end of next, they believe that lawmakers should approve unemployment, potentially paired with school funds and liability protections on their own. . That strategy would result in multiple packages instead of a bipartisan agreement in one large aid package.

“Unemployment insurance ends at the end of next week. We’re going to be ready to make sure those unemployed Americans still have assistance, “said the White House chief of staff. Mark MeadowsMark Randall MeadowsSenate GOP Releases Coronavirus Package Next Week On The Money: Mnuchin Says GOP Has ‘Fundamental’ Agreement On Coronavirus Relief Package T | Inside the republican stimulus proposal | Weekly jobless claims rise to 1.4 million Trump blames Democrats after Republican Party rejects payroll tax cut MORE he told reporters. “I can’t imagine our Democrats across the aisle wanting to get in the way of helping unemployed Americans receive benefits. … Those deadlines, as you well know on Capitol Hill, always work like magic in the 11th hour. “

Mnuchin told reporters that they want an agreement on everything, but “if we can’t do everything, the priority is to address the user interface and schools and responsibility quickly.”

But Democrats quickly rejected that idea.

“This is a package. We cannot fragment this, “Pelosi said.

Senate minority leader Charles SchumerChuck SchumerPelosi, Schumer: Republican Party’s emerging coronavirus plan ‘falls far short’ New York group beat Schumer for lack of benefits for immigrants on relief measures How a progressive populist appears to have ousted Engel MORE (DN.Y.) added that the Democrats were not willing to “take care of a part of the suffering people and leave everyone else hanging.”

And some Republicans are refusing to break parts of the coronavirus proposal, saying they want everything to move forward along with August 7, when the Senate is slated to leave for a four-week break, seen as the deadline.

“I think it’s premature to talk about it,” said the senator. John CornynJohn CornynSenate GOP Releases Coronavirus Package to Hillicon Valley Next Week: Feds Warn Hackers Attacking Critical Infrastructure | Twitter exploring subscription service | Bill would grant DHS cyber agency subpoena The defense spending bill passed by the Senate includes a clause granting DHS cyber agency subpoena (R-Texas). “It would not be by breaking it into small pieces; I think that would make things worse. ”

Niv Elis contributed