Treasury Secretary Steven Mnuchin says Republicans are ready to launch the next COVID-19 aid package on Monday
WASHINGTON – Treasury Secretary Steven Mnuchin said Saturday that Republicans were going to launch the next aid package COVID-19 on Monday and said there was support from the White House after he and President Donald Trump’s top aide met. to save the trillion dollar proposal that had faltered a few days earlier.
Mnuchin told reporters on Capitol Hill that extending an expiring unemployment benefit, but reducing it substantially, was a priority for Trump. The secretary called the weekly aid of $ 600 “ridiculous” and a disincentive for people to return to work. He also promised that a new round of $ 1,200 stimulus checks would arrive in August.
“We are prepared to move quickly,” Mnuchin said after he and Mark Meadows, the president’s acting chief of staff, spent several hours with Republican Party staff on Capitol Hill. He said the president would “absolutely” support the emerging Republican package.
Mnuchin’s optimistic assessment came before Democrats publicly intervened in the updated proposal, which remained only a starting point in negotiations with House and Senate leaders on the other side. He said he recently called House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer ahead of the shuttle negotiations next week on the broader deal.
White House and Senate Republicans were quick to regroup after plans to introduce a $ 1 trillion virus bailout bill collapsed Thursday amid internal struggles by the Republican Party over its size, scope, and details. . It was expected to contribute $ 105 billion to help schools reopen, new virus testing funds, and business benefits, including a new round of loans, tax breaks, and a broad shield of liability for lawsuits related to COVID.
As Republicans struggled, the White House team played down differences with Republican senators as overblown, saying Trump was focused on providing relief.
“The president has been very clear. He wants to make sure that the American people have what they need during this unprecedented time, “said Meadows,” to make sure that not only the money is there but also the programs. “
The expiration of the weekly increase in unemployment benefits of $ 600 had prompted Republicans to act. Democrats already approved their comprehensive $ 3 billion Pelosi plan two months ago. But with millions of Americans about to be suddenly cut off from aid starting Saturday, they were preparing to avoid the social and economic consequences.
The White House raised plans to cut the extra aid to $ 100 a week, while Senate Republicans preferred $ 200, with a general agreement on phasing out the momentum in favor of one that guarantees no more than 70% of the previous salary. of an employee.
Mnuchin also said that the direct payments of $ 1,200 would be based on the same formula as the previous aid invoice. People who make $ 75,000 or less, for example, received the full amount, and people who make more than $ 75,000 received less than $ 1,200 depending on their income. People who earn more than $ 100,000 did not qualify for the payment.
“We will take out most of them in August and they will help people,” Mnuchin said.
Administration officials said the overall package stood at $ 1 trillion, apparently on par with the original draft by Senate Majority Leader Mitch McConnell.
Democrats had warned that time was running out, saying Republicans were in disarray.
The unemployment benefit officially expires on July 31, but due to the way states process unemployment payments, the cut was effectively on Saturday. Other aid, including a federal moratorium on eviction of millions of rental units, also expires at the end of the month.
The Republican plan was not expected to be put to a vote, but rather to serve as a counteroffer to Democrats. That strategy allowed McConnell, who lacked the full support of his Republican majority, to avoid having to endure a failed outcome. But it also gave Democrats some leverage by insisting on their priorities as part of any final deal.
The path ahead was still uncertain, but both sides were struggling to reach an agreement.
McConnell, who spent the weekend in his home state of Kentucky, said Friday that he hoped a package could be agreed “in the coming weeks.”
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