The draft measure also includes $ 10 billion in funding for the U.S. Postal Service, which has become a political hotspot in recent weeks due to operational changes that have led to deliberate delays in service charges.
The proposal is a “lean” version of the $ 1 trillion Senate GOP measure that was introduced last month and would include key elements such as liability protection, $ 105 billion for schools and a second round of Paycheck Protection Program loans. It would also include an extension of the enhanced federal benefit to unemployment, but at a reduced level of $ 300 per week. The benefit, which expired at the end of July, was introduced in the $ 2.2 trillion CARES Act at a flat rate of $ 600 per week.
For the Trump administration and lawmakers, the failure up to this point to secure agreement on a second major stimulus package has left important questions about what’s next for a U.S. economy that still has major problems due to the pandemic. The first major package, signed into law in March after almost unanimous support on Capitol Hill, served as a primary driver of consumer spending because of direct payments to individuals and the improved federal unemployment benefit. The Paycheck Protection Program serves as a lifeline for millions of businesses.
But the divisions between the two parties – and among Republicans themselves – have led to short-term talks up to this point. Democrats have called for a $ 2 trillion topline that includes nearly $ 1 trillion for state and local governments. The White House insists this is a nonstarter.
“There’s a deal to be made here if the Democrats want to be fair,” Treasury Secretary Steven Mnuchin said on Tuesday in an interview with CNBC.
The White House and Republicans have proposed several times to scale back the talks and pass a proposal with lesser scrutiny as negotiations on more controversial items continue. Democrats have rejected a piecemeal approach, making it clear they disagree with anything that does not address their full view of current needs.
Chamber member Nancy Pelosi, in a Politico Playbook interview later Tuesday, said Democrats were still seeking a full-term agreement – and she remained opposed to the idea that any relief tensions should be wrapped up in a funding measure before the fiscal year deadline at the end of September.
“I do not want to have to wait until the (continuous resolution) end of September. More people will die, more jobs will be lost,” said Pelosi, a California Democrat. “We must try to reach that agreement now. All they have to do is recognize the need. We are ready to cut our bill in half to meet the needs right now.”
The General Assembly’s 169-page GOP draft concept is expected to be discussed at the Republican House in the coming weeks, with the idea that it could be considered. upon her return to Washington in September, according to GOP staff. It also serves as an additional element for White House and Democratic negotiators to consider.
The $ 10 billion funding level for the Postal Service is a knot in the tentative agreement reached between Democrats and White House negotiators and will allow Republicans to point to the measure as a way to address congressional talks as the election approach.
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