Congressional leaders seek agreement on $1.4 trillion economic stimulus package

WASHINGTON — Congressional leaders scrambled to negotiate a bipartisan agreement on a $1.4 trillion economic stimulus package on Sunday, as they pushed for a potential vote on Monday amid growing concerns on Capitol Hill about the spread of COVID-19 among lawmakers.

Sen. Rand Paul (R-Ky.) became the first U.S. senator to test positive for the disease on Sunday. Two U.S. House members have tested positive and a growing number of lawmakers were self-isolating following their interactions with infected individuals.

Treasury Secretary Steven Mnuchin said Sunday he expected Congress will vote on the economic relief package Monday, but on Sunday evening a key procedural vote to advance the package for a Monday vote failed to pass the Senate after Senate Democrats raised concerns that the bill did not provide enough measures to protect unemployed workers.

Mnuchin, appearing earlier on "Fox News Sunday," said he had been in talks with Senate Majority Leader Mitch McConnell (R-Ky.), Senate Minority Leader Chuck Schumer (D-N.Y.) and House Speaker Nancy Pelosi (D-Calif.) and had a “fundamental understanding” of what would be included in the bill. A key component of the proposed bill calls for providing most Americans with a $1,000 payment.

But Democrats throughout the day raised concerns about provisions of the proposed package that would provide loans to industries hard hit by the coronavirus crisis, saying there were no safeguards in place to ensure companies will use the money to retain workers and not for stock buybacks.

McConnell was forced to delay a procedural vote on the proposal by three hours on Sunday as Democrats continued to press for changes to the bill. Democrats ultimately withheld the necessary votes to advance the proposal for a vote on Monday.

"Americans don’t need to see us haggling endlessly,” a visibly frustrated McConnell told lawmakers in a Senate floor speech.

Schumer in a tweet said Senate Democrats "voted no on the McConnell-GOP bill because among other problems it includes huge bailouts without protections for people and workers and without accountability, and because it shortchanges our hospitals and healthcare workers who need our help." 

The current bill proposes direct deposits of cash that would include $1,000 for most Americans and $500 for dependent minors. The average direct deposit or check for a family of four will be about $3,000, Mnuchin said, describing the cash as “a bridge for them to get through this quickly.” It is unclear how the money would reach those Americans without bank accounts. 

Mnuchin did not specify what income requirements will be in place to qualify for the money as negotiators work to finalize a deal. Senate Republicans have pushed for a $75,000 income cap per individual to receive the money or $150,000 per couple.

The bill also proposes aid to small business owners that would provide them with retention loans to pay workers for two weeks. The companies will need to retain their employees, and will get some overhead money, with the prospect of the loans being forgiven so long as the companies do not lay off their workers.

The aim is “to keep people and make sure when we open the economy, they’re up and running,” Mnuchin said.

Under the proposed bill, the government will provide enhanced unemployment relief for people laid off, and a $4 trillion liquidity injection to support the economy. Mnuchin said officials are negotiating what could amount to a $110 billion infusion to hospitals and medical professions.

“This situation is moving quickly,” Mnuchin said. “We need to get the money into the economy now. If we do that, we think we can stabilize the economy. We’re putting a lot of money into the hospitals, and I think the president has every expectation that this is gonna look a lot better four or eight weeks from now.” 

Mnuchin, looking to convey confidence in the economy during a volatile period for the stock market said, “This isn’t the financial crisis that’s going to go on for years.”

“This bill gives us a lot of money to create a lot of liquidity in the system and protect Americans, and if this lasts longer, we’ll come back again,” Mnuchin said.

Rep. Tom Suozzi (D-Glen Cove), in a letter to Pelosi sent over the weekend and signed by more than 60 other lawmakers, requested that any measure that emerges from negotiations repeal the $10,000 cap on state and local tax deductions known as SALT.

“The cap is unfair to moderate-income Americans and disproportionately harmful to taxpayers in states like New York, New Jersey, Massachusetts and California that have been ravaged by the coronavirus pandemic," Suozzi wrote in the letter.

In the past month, Congress has passed two sweeping bills to respond to the global pandemic.

Last week, Congress passed the Families First Coronavirus Response Act that provides federal funding for paid sick leave for thousands of Americans grappling with the disease, ensures free testing for the virus and expands unemployment benefits.

On March 4, Congress passed the first federal emergency funding bill to deal with the virus. That bill allocated nearly $8 billion for state and federal efforts to deal with the virus, including the purchase of medical supplies and research for potential vaccines and treatments to combat the virus.