Trump throws a monkey wrench in coronavirus law negotiations with Senate Republicans


WASHINGTON – President Donald Trump is throwing a big key at negotiations between the White House and Senate Republicans on the upcoming coronavirus relief bill by demanding that a payroll tax cut be included and reduced. or completely cut funding for testing.

Leaving Capitol Hill meetings Monday night, Treasury Secretary Steven Mnuchin and White House chief of staff Mark Meadows said the payroll tax cut is on the bill yet to be resolved. publish even though Republican senators say they don’t think it’s good policy.

“I’m not a fan of that, I’ve made it pretty clear,” Senator John Thune of South Dakota, the second Republican in the Senate, said of the proposed payroll tax cut. “I don’t think it’s something that changes anyone’s behavior and has implications for the trust fund. I just think there are better ways to do it. “

Republicans are trying to get to the same page before starting to negotiate with Democrats before leaving for a month-long August recess.

Republican senators also denounced any attempt by the White House to cut funds for coronavirus testing.

“My view is that we should do whatever it takes to make sure we have the right tests,” said Republican Senator Lamar Alexander of Tennessee, chair of the Health Committee. “All roads to open school, open, go back to work, child care, drive through tests.

Mnuchin said that funds for schools are reaching more than $ 70 billion and that they could be allocated to schools that reopen.

McConnell in the Senate called his still-unfinished proposal “a good starting point” and said it could be released “as soon as this week.”

Mnuchin and Meadows met with Senate Majority Leader Mitch McConnell and House Minority Leader Kevin McCarthy at the White House on Monday morning. They met with Alexander and Senators Roy Blunt of Missouri and Richard Shelby of Alabama on Monday night on a variety of proposals, specifically a path to school funding.

White House negotiators will return to the hill Tuesday to brief all Senate Republicans, as well as Speaker of the House of Representatives Nancy Pelosi, and Senate Minority Leader Charles Schumer on the other side. of the Capitol.

Here’s where the negotiations are starting Monday night:

Payroll tax reduction: Trump and the administration will have a lot to convince among Republican Senate skeptics that they don’t commit to the idea of ​​a payroll tax cut.

Senator John Cornyn of Texas called it “troublesome,” while Senator Charles Grassley of Iowa said: “It can create political problems but it creates a public relations problem.”

But White House officials assured reporters on Capitol Hill that the proposal is already on the bill.

“That plans to be there … I mean, that’s part of the proposal,” said Meadows. “It’s on the bill,” said Mnuchin.

Thune evaluated the reality of the proposal: “I would say that it is a high priority, as you know, for the President. And so its advocates Mnuchin and Meadows and others, I think, will probably try to make sure it’s at least included in the first draft. Put it that way, ”Thune said, laughing.

Senator Lindsey Graham of South Carolina told NBC News that he does support that the tax cut be “media verified.” When asked what other senators in her conference supported her, Graham laughed and said, “Good question.”

Funding for testing: Senate Republicans are rejecting the administration’s idea of ​​reducing funding for coronavirus testing.

“Well, I think that will be a priority for our members, for sure,” Thune said. Alexander told reporters: “I think we should fund the tests as generously as necessary.”

Blunt, who has been working with Alexander to increase testing capabilities, told reporters “I think that’s wrong” to cut funds, citing a new rapid test that the National Institutes of Health is working on that will need more funding in the next law. “It will take more money to quickly focus on those tests and have them ready by the time school starts,” he said.

Meanwhile, Meadows told reporters, “How would they even know what test funding is?” when they were told that Republican senators want to increase funds.

More money to reopen schools: After meeting with Alexander, Blunt and Shelby, Mnuchin told NBC News “Schools were a very important component” of their discussion, but that “he wasn’t going to talk about details, but it’s a lot of money.” To be included in the bill, Mnuchin said that more than $ 70 billion “would be a good guess.”

Alexander and Blunt said they believe funding for the tests is directly related to the reopening of the schools.

Trump previously threatened to withhold funds for schools if they did not reopen. When asked if funding for schools should be conditional on reopening, Alexander did not respond. Blunt told reporters that he does not want to penalize schools that choose not to reopen, but believes that schools that reopen will need more funding.

Meadows told reporters: “We will inform everyone tomorrow” when asked if the money will be conditional on the reopening of the schools.

Increase in unemployment benefits: Republicans are not fanatical about extending the $ 600 a week increase in unemployment payments, and neither is the administration, but Democrats are pushing it.

“Obviously it will be a negotiation between Republicans, Democrats and the White House,” Thune said. “I can’t imagine a scenario where it extends to the current level.”

Stimulus controls: Republicans are divided by more direct payments, but the administration wants it.

“Nothing is final. But I suspect there will be, there is a high level of interest in doing something else to help people, particularly at the lower end of the income scale, “Thune said.” But I think the latest version of this cost somewhere in the $ 300 billion order, and there will be a plug-in to help people and if that’s payroll tax or, you know, direct checks, checks or what form that takes, I’m not sure. “

Grassley favors stimulus controls over payroll tax cuts.

“I think once a person has a check in their hand, x number of dollars will be $ 1,200 or $ 1,000, I don’t know. But I think that will be more economical than if we gave away $ 30 each paycheck, “he said. “Because people will notice and take some action as a result. So I hope all of this is being done with respect to financial need. “

Civil liability protections: Legal protections for schools, universities, charities, front-line health care workers and employers, and employers who follow public health guidelines will be included in the Republican plan.

“We don’t need an epidemic of lawsuits after a pandemic,” McConnell said Monday morning.