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President Donald Trump has raised his offer for a new fiscal stimulus package to $ 1.8 trillion in an attempt to reach a final compromise with Congressional Democrats on relief for the US economy ahead of the November election.
The revised offer is higher than the $ 1.6 trillion the White House had previously proposed, but is still less than the $ 2.2 trillion in new spending proposed by Democrats in the House of Representatives, so it may that is not enough to reach an agreement.
Nancy Pelosi, Speaker of the Democratic House, and Steven Mnuchin, Secretary of the Treasury in the Trump administration, have been holding off-and-on negotiations for days on a potential compromise, so far to no avail.
“Frankly, I’d like to see a bigger stimulus package than the one Democrats or Republicans offer,” Trump said on Rush Limbaugh’s radio show. “I’d like to see the money go to the people.”
The president accepted a $ 1.8 trillion offer on Friday, according to a senior administration official, ending a week of many twists and turns. Trump had initially called for an agreement via Twitter from his hospital suite in Maryland last Saturday, before abruptly canceling negotiations on Tuesday. Faced with significant backlash, he then changed course and tried to lure Democrats back into a conversation, first about a series of smaller aid packages and, more recently, about a big problem.
Alyssa Farah, the White House communications director, told reporters that the administration wanted to keep the cost “below $ 2 trillion,” suggesting that Trump could go even higher.
The White House could face resistance from lawmakers in the Republican-controlled Senate, who have consistently resisted big new spending and have only been willing to consider a package under $ 1 trillion. This could complicate approval before the Nov.3 election, also considering that the Senate is aiming to confirm Trump’s new Supreme Court candidate, Amy Coney Barrett, also in the coming weeks.
Mitch McConnell, the Senate Majority Leader, said in Kentucky on Friday that a stimulus bill was “unlikely” before the election because of the “proximity” of the vote and “fairly large” differences over what was needed.
However, some Republican senators in tough re-election battles pushed for a deal. Joni Ernst of Iowa wrote on Twitter that she spoke to Trump and told him that people in her state were crying out for relief. “I am hopeful that Congress can come together once again – R and D – and provide more support for working Americans,” said Ms. Ernst.
So far, Democrats have resisted Trump’s proposals. They are pushing for more to be spent on unemployment benefits and child care and, in a particular bone of contention with Republicans, aid for cash-strapped state and local governments.
Pelosi reacted cautiously to the new offer from the White House.
Drew Hammill, one of his senior advisers, said the new proposal only “attempted to address some of the concerns that Democrats have” about the administration’s stance. “Of particular concern is the absence of an agreement on a strategic plan to squash the virus. For this and other provisions, we are still awaiting the language of the administration while negotiations on the full amount of the funding continue, ”Hammill wrote on Twitter.
Economists, including Federal Reserve officials, have warned that in the absence of a deal, the United States could face a longer and more painful recovery from the pandemic.
There are already signs of a slowdown in job creation and some large employers have announced or implemented mass layoffs in recent weeks, pointing to an even more troubled job market in the months ahead if support is not received.
Swamp notes
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