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On Wednesday, US Congressional negotiators were “closing in” on a $ 900 billion Covid-19 aid bill that will include stimulus checks of $ 600 to $ 700 and extended unemployment benefits as it is Friday’s deadline was approaching, lawmakers and advisers said.
Top members of the Democrat-controlled House of Representatives and the Republican-controlled Senate sounded more positive than in months about a new response to a crisis that has killed more than 304,000 Americans and put millions out of work.
For months, Republicans have been looking for a stimulus package priced much lower than what Democrats want. The two sides appear to have found common ground in a $ 908 billion aid package, more than $ 1 trillion less than the first stimulus package.
His aides were scrambling to draft legislation on Wednesday, as Covid-19 infection rates are skyrocketing to new levels, even as the United States begins vaccinating people. The US economy shows signs of weakening.
Negotiators were looking for a way to shift focus to help the hardest hit state and local governments, which has been a key Democratic priority but opposed by Republicans, said a source familiar with the talks. The measure, which will be attached to a spending bill that must be passed before Friday to avoid a government shutdown, is not expected to include new protections for companies from pandemic-related lawsuits, something that figures prominently. on the Republican agenda.
Senator Dick Durbin, the second House Democrat, said the goal was to reach an agreement on Wednesday and have it ready for a vote beginning Thursday.
Senate Majority Leader Mitch McConnell said he was optimistic.
“We made great strides toward crafting a specific pandemic relief package,” McConnell said in the Senate. “We need money for vaccine distribution, we need to relaunch the Paycheck Protection Program to save jobs, we have to continue to provide laid-off Americans.”
The Paycheck Protection Program (PPP) is the federal loan and grant program for small businesses experiencing the pandemic.
But House Democratic Leader Steny Hoyer said if the midnight Friday deadline to pass the spending measure is missed, he could envision another three- or four-day interim spending bill to keep government agencies open while negotiations continue.
Senator John Thune, the second Senate Republican, said the proposed direct payments to individuals would be around $ 600-700 per person.
Mark Ritacco, director of government affairs for the National Association of Counties, said that some of the steps Congress could take to help local authorities include providing a one-year extension of the unspent funds provided by the Cares Act, a Covid-19 relief bill enacted in March.
His organization also hopes that Congress will expand the number of counties that can receive help to include smaller counties, especially since they must administer the new vaccines. He suggested that the federal government replenish more local Covid-19 aid costs already partially reimbursed by the Federal Emergency Management Agency (Fema), such as personal protective equipment for schools and other government buildings.
But some Republicans fear that making Fema pay more is an indirect way of providing more help from state and local governments.
“If it’s just a way to disguise the money for state and local governments, we will have a lot of opposition,” Thune said.
The negotiations come at a key time for a US economy clearly weakening after an initial rebound from the pandemic-triggered recession earlier this year. Consumer spending, boosted during the summer and early fall by more than $ 3 trillion in federal assistance, has hit a wall as new closures limit business activity and keep people home.
Joe Biden said the stimulus package was encouraging, but more help would be needed.
“It seems that they are very, very close, and it seems that there will be direct payments in cash, but it is a down payment, an important down payment, of what will have to be done from the end of January. until February, ”the president-elect told reporters.
Commerce department data showed that retail sales unexpectedly fell in November, and consumer spending on goods and services showed widespread weakness.
On Wednesday, the Federal Reserve promised to continue funneling cash into financial markets going forward to combat the recession, even as lawmakers’ prospects for the coming year improved following the initial launch of a coronavirus vaccine.
