A10 Wednesday, December 2, 2020 — DAILY REPUBLIC
Nation
Bipartisan group proposes $908 billion ‘bridge’ aid package Tribune Content Agency WASHINGTON — A bipartisan, bicameral group of lawmakers unveiled a $908 billion aid package for the Covid-19 pandemic Tuesday in an attempt to break a stalemate that has held up relief for months. The proposal offers a middle ground between the $2.4 trillion measure sought by House Democrats and the $519 billion pushed by Senate Republicans. The package is designed to provide enough relief through the end of March, lawmakers said. “It’s inexcusable for us to leave town and not have an agreement,” said Sen. Joe Manchin III, D- W.Va., a leader of the bipartisan group that presented its plan at a news conference. “It’s not the time for political brinkmanship.”
But it wasn’t clear whether the latest attempt at compromise would fare any better than previous bipartisan plans offered by rank-and-file lawmakers. Manchin Pelosi said the group has received no assurance from congressional leadership about getting floor votes on their proposal, which has yet to be drafted into legislation. Sen. Mitt Romney, R- Utah, who is part of the bipartisan group, said Treasury Secretary Steven Mnuchin and Senate Majority Leader Mitch McConnell were consulted on the proposal. But Romney said neither expressed either support or opposition to the plan. For the first time in
weeks, Speaker Nancy Pelosi planned to talk with Mnuchin Tuesday afternoon to discuss pandemic aid, along with a year-end omnibus spending package. Those relief talks broke down shortly before the Nov. 3 elections, when Mnuchin had been discussing a $1.9 trillion plan that Democrats dismissed as inadequate. The new bipartisan measure, billed as a “framework” for an aid compromise, includes many pieces of relief programs that lawmakers have tried for months to pass in various forms. The biggest single piece is $288 billion in relief for small businesses, including a new round
Senators split over end to Fed emergency lending programs Tribune Content Agency WASHINGTON — Democrats and Republicans split on Treasury S e c r et a r y S t even Mnuchin’s decision to end most of the emergency lending facilities established at the onset of the coronavirus pandemic at a Senate hearing Tuesday. “Even the Chamber of Commerce said that shutting down the emergency lending programs ‘closes the door on important liquidity options for businesses at a time when they need (them) the most,’” said Sen. Sherrod Brown, D- Ohio, the panel’s ranking member. But at the hearing to take testimony from Mnuchin and Federal
Reserve Chairman Jerome Powell, Chairman Michael D. Crapo, R- Idaho, disagreed. “Secretar y Mnuchin, I’m actually quite surprised to hear you criticized for following the law,” Crapo said. As the economy began to shutter in an effort to slow the spread of Covid-19 in March, the financial markets also began to shut down until the Fed started to set up emergency lending backstops. Congress gave the Treasury secretary $500 billion to underwrite those credit facilities and other direct lending programs as part of the $2 trillion relief package in March. Mnuchin asked the Fed last month to end most of the emergency credit
facilities, saying that the law only foresaw the programs operating until the end of the year. In a rare public disagreement, the Fed said it would prefer to maintain the backstops into next year – something it would have the authority to do only with Mnuchin’s blessing. But in his testimony Tuesday, Powell only obliquely referenced the disagreement as he said the central bank would end the programs and return the unused funds. “Our emergency lending powers require the approval of the Treasury and are available only in very unusual circumstances, such as those we find ourselves in today,” Powell said.
of Paycheck Protection Program loans, along with Economic Injury Disaster Loans and aid to restaurants, according to a chart summarizing the proposal. It also includes $180 billion for expanded unemployment insurance benefits, which Manchin said would provide an extra $300 a week for 18 weeks. State and local governments, which have struggled to make up for lost revenue from economic shutdowns, would get $160 billion — a far cry from the nearly $1 trillion Democrats had sought last spring. Republicans have resisted the aid, saying they don’t want to bail out poorly managed states. But both sides have been willing to provide direct aid for public schools struggling to reopen safely, which is
considered a major component of state and local assistance. The bipartisan plan pitched Tuesday would provide $82 billion to help state and local governments patch up one of their biggest individual budget holes. And the package attempts to find a compromise on a top priority for McConnell that triggered Democratic opposition: liability protection for employers against pandemic-related lawsuits. The summary calls for “short-term” liability protection “with the purpose of giving states time to develop their own response.” “It builds upon President (Donald) Trump’s commitment to get something done,” said Sen. Bill Cassidy, R- La., in urging Republicans to support the
package. “This is a victory for common sense.” Other pieces of the package include: n $45 billion in aid for the transportation industry, including airlines, buses, transit and Amtrak. n $16 billion for vaccine development and distribution, along with virus testing and tracing. n $35 billion for health care providers, such as hospitals. n $25 billion in rental housing assistance. n $10 billion for the U.S. Postal Service. n $10 billion for child care assistance. “This is a heck of a down payment and what our country needs desperately,” said Rep. Josh Gottheimer, D- N.J., a leader of the bipartisan Problem Solvers Caucus in the House.
