Democrats came out Friday in favor of a provision by Conservative Sen. Pat Toomey, R-Pa., That would close more than $ 400 billion in possible Federal Reserve loan powers established under a bill. relief in March. Pelosi told reporters on Saturday that negotiations on the language are the biggest hurdle left.
“We had this big problem, one last point, with Mr. Toomey. And that has to be resolved. And then everything will stay in place. But that’s the big one. And that’s detrimental to our economy, and doing backtracking on an agreement on the matter, “Pelosi told reporters as he entered the Capitol.
This is a last minute update. An earlier version of this report is shown below.
The Fed’s programs in question provided loans to small and medium-sized businesses and bought bonds from state and local government, making it easier for loans to these governments at a time when their finances are under pressure from the pandemic. .
Negotiators reported continued progress on a nearly $ 1 trillion COVID-19 economic relief package on Saturday, with the optimism that expired talks would soon produce a deal. The Senate convened a session on Saturday, while members of the House defended a vote that will arrive before Sunday.
A new government shutdown at midnight on Sunday served as support for the tortuous negotiations, which were held in secret, largely between the four main leaders of the Capitol Hill warring tribes.
A key negotiator said the talks continued in good faith.
“But the American people cannot feed their families or pay their bills with the bona fide discussions of Congress,” said Majority Leader Mitch McConnell, leader of the Senate GOP faction. “We need to conclude our talks, draft legislation and land this plane.”
The huge package would wrap much of Capitol Hill’s outstanding 2020 business in a giant that is taken or left that promises to be a foot thick or more. House lawmakers will likely only have a few hours to study it before voting on Sunday afternoon. A Senate vote will follow and another funding bill will likely be needed to prevent a closure at midnight on Sunday.
MORE: 10,000 restaurants are expected to close in the next 3 weeks due to COVID-19
The House passed the temporary funding bill on Friday by a vote of 320 to 60 votes. The Senate approved it by a voice vote almost immediately afterwards and President Donald Trump signed it on Friday at the end.
McConnell gave no update on the talks, but the remaining issue involves an effort by Republican Conservatives to curb the Federal Reserve’s emergency lending powers. Democrats said the Republican Party’s proposal would deprive President-elect Joe Biden of crucial tools to manage the economy.
An agreement in principle on Saturday would be a precursor to more hours of translating commitments into detailed legislation. Lawmakers are eager to get out of Washington and close out a tumultuous year.
House lawmakers were told they should not be reported to work on Saturday, but that there is likely to be a session on Sunday. The Senate will vote on the nominations on Saturday.
The $ 900 billion package comes as the pandemic is producing its most fearsome rise to date, killing more than 3,000 victims a day and straining the country’s health care system. Even though vaccines are on the way, most people won’t get them for months. Unemployment claims are on the rise.
SEE ALSO: White House offer adds $ 600 checks to COVID-19 relief
The emerging agreement would provide more than $ 300 billion in aid to businesses and provide the unemployed with a $ 300-a-week bonus for federal unemployment benefits and renewal of state benefits that would otherwise expire just after Christmas. It also includes direct payments of $ 600 to individuals; vaccine and money distribution funds for tenants, schools, postal service and people in need of food aid.
Democrats came out Friday in favor of a provision by Conservative Sen. Pat Toomey, R-Pa., That would close more than $ 400 billion in possible Federal Reserve loan powers established under a bill. relief in March. Treasury Secretary Steven Mnuchin will close the programs in late December, but Toomey’s language goes further, preventing the Fed from restarting lending next year.
“As we navigate an unprecedented economic crisis, it is in the interest of the American people to maintain the Fed’s ability to respond quickly and forcefully,” Biden economic adviser Brian Deese said. “Undermining that authority could mean fewer loans to Main Street businesses, higher unemployment and greater economic pain across the country.”
The Fed’s programs in question provided loans to small and medium-sized businesses and bought bonds from state and local government, making it easier for loans to these governments at a time when their finances are under pressure from the pandemic. .
The Fed would need Treasury Department support to restart the programs, which would likely provide the nominee for Biden Treasury Secretary Janet Yellen, a former Fed chairman. The Treasury could also provide funds to support these programs without congressional approval and could ease loan requirements. This could encourage more lending under the programs, which so far have had only limited use.
The pending bill is the first significant legislative response to the pandemic since the CARES law was passed virtually unanimously in March, offering $ 1.8 trillion in aid, more generous weekly unemployment benefit benefits and $ 1,200 direct to individuals.
The measure, in large part, follows a staff established by a bipartisan group of senators and a team of pragmatists in the House. But top leaders are firmly in charge, even though relations are worn out by months of war.
The COVID-19 package would be added to a $ 1.4 trillion appropriation bill across the government that would fund federal agencies until next September. This measure is likely to provide a final $ 1.4 billion quota for the Trump-US border wall with Mexico as a condition for winning his signature.
For Republicans, the most important COVID-19 aid benefit was a second round of “wage protection” payments to especially affected businesses and the renewal of state unemployment benefits that would just expire for the unemployed. long-lasting.
Democrats have been denied direct tax relief for states and local governments, a top priority, and have obtained an additional COVID-19 unemployment benefit that was only half of what the CARES Act delivered. Democrats also earned $ 25 billion to help troubled tenants with their payments and $ 45 billion for airlines and transit systems, but some critics on the left said Democratic negotiators they were overcoming.
In fact, McConnell has been in the cat bird seat since Senate Republicans exceeded expectations in November, while House Democrats barely had a majority. Democratic demands for a pre-election bill of more than $ 2 trillion quickly fell by more than half. Still, Biden is pushing for an agreement, fearing a weakened economy will await it on the opening day.
Biden promises another bill next year, but if Democrats lose Georgia’s second-month Senate election and don’t get a Senate majority, they may have little influence. By contrast, Republican Party leaders say in private that delivering an aid bill can help their incumbent candidates in the January runoff, Republican Sen. Kelly Loeffler and David Perdue.
Most economists, including Federal Reserve Board Chairman Jerome Powell, strongly support the additional economic incentives needed to keep businesses and households afloat during what is expected to be a harsh winter. Many predict that the economy could shrink in the first three months of 2021 without further aid. Standard & Poor’s said Tuesday in a report that the economy would be 1.5 percentage points lower in 2021 without further help.
Copyright © 2020 by The Associated Press. All rights reserved.