The House of Representatives on Friday passed a two-day interim spending bill to avoid a partial government shutdown, trying to gain time in slow negotiations over a nearly $ 1 trillion aid package to deal with the consequences of the coronavirus.
It is not guaranteed to be approved by the Senate, but it looks likely to do so before the deadline expires at midnight.
The lower house approved the bill by 320 votes to 60. Now frustrated lawmakers are heading to continue negotiating over the weekend.
Senate Majority Leader Mitch McConnell said early on that he was “even more optimistic now than he was last night.”
However, Democrats launched a concerted campaign to block a Republican attempt to curb the Federal Reserve’s emergency credit powers. They said the Republican proposal would deprive President-elect Joe Biden of crucial tools to administer the economy.
Believing that an agreement could be reached on Friday “would be a triumph of hope over experience,” said the second-highest Republican in the Senate, John Thune.
Government funding expires at midnight on Friday, and there will be a low-impact partial shutdown if Congress does not pass an interim spending bill before the deadline expires.
Democrats oppose a provision by Republican Sen. Pat Toomey that would cancel more than $ 400 billion in potential Fed credit powers established in March under an aid bill. Treasury Secretary Steven Mnuchin will close the programs in late December, but Toomey’s language goes further, calling for a ban on the central bank resuming lending next year. Democrats say the provision will tie Biden’s hands and put the economy at risk.
The struggle clouded progress on other issues of the long-awaited agreement. After feeling overwhelmed for much of Thursday, negotiators showed more optimism, though the complexity of reaching a negotiated solution around the remaining issues and drafting the agreements in legislative and precise language was daunting.
Apparently the focal points were already ready: more than $ 300 billion in aid to businesses; an additional $ 300 weekly unemployment benefit and the renewal of state benefits, which are about to expire; direct payments of $ 600 to individuals; funds for the distribution of vaccines, and money for tenants, schools, the postal service and people in need of food aid.
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