Top-level negotiations between Congress and the White House teetered Sunday over a now nearly $2 trillion economic rescue package, as the coronavirus crisis deepened, the nation shut down and the first U.S. senator tested positive for the disease.
As President Donald Trump took to the podium in the White House briefing room and promised to help Americans who feel afraid and isolated as the pandemic spreads, the Senate voted against advancing the rescue package. But negotiations continued on Capitol Hill.
“I think you’ll get there. To me it’s not very complicated: We have to help the worker. We have to save the companies,” Trump said. “We’re enduring a great national trial and we will prove that we can meet the moment. We’re at war.”
At the otherwise emptied out Capitol, the draft aid bill was declared insufficient by Democrats, who argued it was tilted toward corporations and did too little to help workers and healthcare providers. The setback sent Republicans back to the negotiating table.
With a population on edge and shell-shocked financial markets poised for the new work week, doubts emerged about the fate of an agreement that would provide some relief against health and economic crises that are likely to stretch for several months.
“Americans don’t need to see us haggling endlessly,” warned Senate Majority Leader McConnell, R-Ky., his voice rising on the Senate floor. He sought passage of the package by Monday.
But Democrats say the largely GOP-led effort does not go far enough to provide health care and unemployment aid for Americans, and fails to put restraints on a proposed $500 billion “slush fund” for corporations.
Senate Democratic leader Chuck Schumer, D-N.Y., said the draft package “significantly cut back our hospitals, our cities, our states, our medical workers and so many others needed in this crisis.”
Trump urged Congress to get a deal done and, during the Sunday briefing, responded to criticism that his administration was sluggish to act. He cited his cooperation with the three states hardest hit — New York, Washington and California — and invoked a measure to give governors flexibility in calling up the national guard under their control, while the federal government covers the bill.
In recent days, Trump invoked the Defense Protection Act, a rarely used, decades-old authority that can be used to compel the private sector to manufacture needed medical supplies like masks and ventilators. Officials said Sunday that it would be used voluntarily and businesses would not be compelled to act.
“We are a country not based on nationalizing our business,” said Trump, who has repeatedly railed against socialism overseas and among Democrats. “Call a person over in Venezuela. Ask them, how did nationalization of their businesses work out? Not too well.”
The president tweeted Sunday that automakers General Motors and Tesla were given “the go ahead” to make ventilators and other products. But no automaker is anywhere close to making medical gear such as ventilators and remain months away, if not longer. Nor do the car companies need the president’s permission to move forward.
Treasury Secretary Steven Mnuchin, who was leading a third day of nonstop talks on Capitol Hill, said the plan was meant to prop up the nation’s weakened economy for the next 10 to 12 weeks.
Mnuchin said workers and businesses will get assistance to help cover payrolls for the next 10 weeks; unemployment insurance; and a one-time “bridge payment” of about $3,000 for a family of four. Hospitals, he said, will get approximately $110 billion for the expected influx of sick patients.
The treasury secretary said a significant part of the package will involve working with the Federal Reserve for up to $4 trillion of liquidity to support the economy with “broad-based lending programs.”
But Democrats have pushed for add-ons, including food security aid, small business loans and other measures for workers — saying the three months of unemployment insurance offered under the draft plan was not enough.
They warned the draft plan’s $500 billion for corporations does not put enough restraints on business, saying the ban on corporate stock buy-backs is weak and the limits on executive pay are only for two years.