Tag Archives: Congress

Trump to meet Michigan lawmakers in bid to overturn electoral defeat

By Joseph Ax

(Reuters) – President Donald Trump will meet with Republican leaders from Michigan at the White House on Friday as his campaign pursues a bid to overturn the Nov. 3 election following a series of courtroom defeats.

The Trump campaign’s latest strategy, as described by three people familiar with the plan, is to convince Republican-controlled legislatures in battleground states won by President-elect Joe Biden, such as Michigan, to set aside the results and determine Trump the winner.

“The entire election frankly in all the swing states should be overturned and the legislatures should make sure that the electors are selected for Trump,” Sidney Powell, one of Trump’s lawyers, told Fox Business Network on Thursday.

Biden, a Democrat, won the election and is preparing to take office on Jan. 20, but Trump, a Republican, has refused to concede and is searching for a way to invalidate the results, claiming widespread voter fraud.

The Trump team is focusing on Michigan and Pennsylvania for now, but even if both those states flipped to the president he would need another state to overturn its vote to surpass Biden in the Electoral College.

Such an extraordinary event would be unprecedented in modern U.S. history. Trump not only would need three state legislatures to intervene against vote counts as they stand now, but then also have those actions upheld by Congress and, almost certainly, the Supreme Court.

Michigan’s state legislative leaders, Senate Majority Leader Mike Shirkey and House Speaker Lee Chatfield, both Republicans, will visit the White House at Trump’s request, according to a source in Michigan.

The two lawmakers will listen to what the president has to say, the source said. Shirkey told a Michigan news outlet earlier this week that the legislature would not appoint a second slate of electors.

“It’s incredibly dangerous that they are even entertaining the conversation,” Michigan Governor Gretchen Whitmer, a Democrat, told MSNBC. “This is an embarrassment to the state.”

SOUNDING THE ALARM

Biden, meanwhile, is due on Friday to meet Democratic leaders in Congress, House of Representatives Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer after spending most of the week with advisers planning his administration.

Nationally, Biden won nearly 6 million more votes than Trump, a difference of 3.8 percentage points. But the outcome of the election is determined in the Electoral College, where each state’s electoral votes, based largely on population, are typically awarded to the winner of a state’s popular vote.

Biden leads by 306 electoral votes to Trump’s 232 as states work to certify their results at least six days before the Electoral College convenes on Dec. 14.

Legal experts have sounded the alarm at the notion of a sitting president seeking to undermine the will of the voters, though they have expressed skepticism that a state legislature could lawfully substitute its own electors.

Trump’s lawyers are seeking to take the power of appointing electors away from state governors and secretaries of state, and give it to friendly state lawmakers from his party, saying the U.S. Constitution gives legislatures the ultimate authority.

ROMNEY CRITICIZES TRUMP

Even though election officials have not reported any major irregularities, most prominent Republicans have remained devoted to their leader or quietly acceded. But a few Republicans, including senator and former presidential candidate Mitt Romney, have spoken out.

“Having failed to make even a plausible case of widespread fraud or conspiracy before any court of law, the president has now resorted to overt pressure on state and local officials to subvert the will of the people and overturn the election,” Romney said in a statement on Thursday. “It is difficult to imagine a worse, more undemocratic action by a sitting American president.”

Other Republican senators including Ben Sasse and Joni Ernst called on Trump to offer proof.

Trump’s attempts to reverse the outcome via lawsuits and recounts have met with little success.

The Georgia Secretary of State on Friday confirmed that Biden won the state after a manual recount and an audit were conducted.

“The numbers reflect the verdict of the people, not a decision by the secretary of state’s office or courts, or of either campaigns,” Georgia Secretary of State Brad Raffensperger, a Republican and Trump supporter, told reporters.

Despite the setbacks, the Trump campaign has not abandoned its legal efforts.

Rudy Giuliani, the president’s personal lawyer, said on Thursday he planned to file more lawsuits, accusing Democrats of masterminding a “national conspiracy” to steal the election, though he offered no evidence to support the claim.

Biden called Trump’s attempts “totally irresponsible” on Thursday, though he has expressed little concern they will succeed in preventing him from taking office on Jan. 20.

(Reporting by Joseph Ax in Princeton, New Jersey; Additional reporting by Michael Martina in Detroit, Jarrett Renshaw in Wilmington, Delaware, Karen Freifeld in New York and Jan Wolfe and Doina Chiacu in Washington; Editing by Lincoln Feast, Daniel Trotta, David Clarke and Chizu Nomiyama)

McConnell: Signs of economic recovery point to smaller COVID-19 stimulus

By David Morgan

WASHINGTON (Reuters) – U.S. Senate Majority Leader Mitch McConnell said on Friday that economic statistics, including a 1 percentage point drop in the unemployment rate, showed that Congress should enact a smaller coronavirus stimulus package that is highly targeted at the pandemic’s effects.

The Republican senator told a news conference in Kentucky that the fall to a 6.9% jobless rate, combined with recent evidence of overall economic growth, showed the U.S. economy is experiencing a dramatic recovery.

“I think it reinforces the argument that I’ve been making for the last few months, that something smaller – rather than throwing another $3 trillion at this issue – is more appropriate,” McConnell told reporters.

But his call for a narrow package was quickly rejected by House of Representatives Speaker Nancy Pelosi, a Democrat, who has been working to broker a COVID-19 stimulus deal near the $2 trillion mark with Treasury Secretary Steven Mnuchin.

“It doesn’t appeal to me at all, because they still have not agreed to crush the virus. If you don’t crush the virus, we’re still going to have to be dealing with the consequences of the virus,” Pelosi told a news conference on Capitol Hill.

“That isn’t anything that we should even be looking at. It wasn’t the right thing before,” she added.

Senate Republicans, who oppose a larger package, have twice failed to move forward with smaller legislation worth $500 billion due to Democratic opposition.

Pelosi insisted that any agreement must include effective support for testing, tracing and vaccine development, as well as aid to state and local governments. Trump and his Republican allies have balked at Democratic demands for state and local aid, calling it a bailout for Democratic-run states and cities.

(Reporting by David Morgan; editing by Jonathan Oatis)

After a campaign like no other, Americans rendering final verdict at polls

By Trevor Hunnicutt and Doina Chiacu

WILMINGTON, Del./WASHINGTON (Reuters) – Americans cast votes on Tuesday in the bitterly contested presidential race between incumbent Donald Trump and challenger Joe Biden after a tumultuous four years under the businessman-turned-politician that have left the United States as deeply divided as at any time in recent history.

Voters lined up at polling places around the country casting ballots amid a coronavirus pandemic that has turned everyday life upside down. Biden, the Democratic former vice president who has spent a half century in public life, has held a strong and consistent lead in national opinion polls over the Republican president.

But Trump is close enough in several election battleground states that he could piece together the 270 state-by-state Electoral College votes needed to win the election.

Trump is hoping to repeat the type of upset he pulled off in 2016 when he defeated Democrat Hillary Clinton despite losing the national popular vote by about 3 million ballots. Trump is aiming to avoid becoming the first incumbent U.S. president to lose a re-election bid since George H.W. Bush in 1992.

It is possible that it could be days before the result is known, especially if legal challenges focused on ballots sent by mail are accepted in the event of a tight race.

There was a sense of anxiety among voters and concern about possible unrest after a campaign with heated rhetoric. There were buildings boarded up in anticipation of possible protests, including in Washington and New York City. A new fence was erected around the White House.

Polls opened in some Eastern states at 6 a.m. EST (1100 GMT). The most closely watched results will start to trickle in after 7 p.m. EST (2400 GMT) when polls close in states such as Georgia.

Biden made another appearance on Tuesday morning in the pivotal state of Pennsylvania. Speaking to supporters using a bullhorn in Scranton, the city where he was born, Biden returned to some of his familiar campaign themes, promising to unite Americans and “restore basic decency and honor to the White House.”

Appearing on Fox News on Tuesday morning, Trump said the crowds he saw on Monday during his frenetic last day of campaigning gave him confidence that he would prevail.

“We have crowds that nobody’s ever had before,” said Trump, who has been criticized by Democrats for holding packed rallies in defiance of social-distancing recommendations during the pandemic. “I think that translates into a lot of votes.”

The voting caps a campaign dominated by a pandemic that has killed more than 231,000 Americans and put of people millions out of work. The country this year also was shaken by protests against racism and police brutality.

Biden, who has framed the contest as a referendum on Trump’s handling of the pandemic, promised a renewed effort to combat the public health crisis, fix the economy and bridge America’s political divide.

Trump has downplayed the pandemic, saying the country is “rounding the corner” even as numerous states set single-day records of new infections in the final days of the campaign.

More than 99 million Americans voted early either in person or by mail, motivated not only by concerns about waiting in lines on Election Day amid the pandemic but also by extraordinary levels of enthusiasm after a polarizing campaign.

The record-shattering total is nearing three-quarters of the total 2016 vote, according to the U.S. Elections Project at the University of Florida. Experts predict the vote could reach 160 million, exceeding the 138 million ballots cast in 2016.

While there were long lines in some places, in many states lines were shorter, perhaps a reflection of the massive early vote.

In McConnellsburg, Pennsylvania, about a dozen voters lined up, bundled in jackets and hats on an unseasonably chilly morning.

“He’s a bit of a jerk, and I appreciate that,” Martin Seylar, a 45-year-old welder who had just finished his shift, said of Trump, his preferred candidate. “He doesn’t get everything that he says done, but the way I see it is he’s trying, versus where everybody else blows smoke at us.”

In Detroit, Republican voter Nick Edwards, 26, cast a ballot for Biden but voted for Republican candidates for Congress.

“Honestly, decency in the White House,” Edwards said when asked about his main concern. “When someone leads the party, they need to hold those values, as well. I don’t think Trump encompasses that.”

Some crucial states, such as Florida, begin counting absentee ballots ahead of Election Day and could deliver results relatively quickly on Tuesday night. Others including Pennsylvania, Michigan and Wisconsin are barred from processing the vast majority of mail ballots until Election Day, raising the possibility of a prolonged vote count that could stretch for several days.

U.S. stocks opened higher on Tuesday, as investors wagered that Biden would prevail and usher in fresh stimulus spending.

CONTROL OF CONGRESS AT STAKE

Voters on Tuesday will also decide which political party controls the U.S. Congress for the next two years, with Democrats pushing to recapture a Senate majority and expected to retain their control of the House of Representatives.

Trump, 74, is seeking another four years in office after a chaotic first term marked by the coronavirus crisis, an economy battered by pandemic shutdowns, an impeachment drama, inquiries into Russian election interference, U.S. racial tensions and contentious immigration policies.

Trump, looking tired and sounding hoarse after days of frenetic campaigning, struck a decidedly less belligerent tone on Tuesday than he did on the trail over the weekend. He was expected spend most of Tuesday at the White House, where an election night party is planned for 400 guests, all of whom will be tested for COVID-19.

Biden, 77, is looking to win the presidency after a five-decade political career including eight years as vice president under Trump’s predecessor, Barack Obama. He mounted unsuccessful bids for the Democratic presidential nomination in 1988 and 2008.

Biden started his day at St. Joseph on the Brandywine, his Roman Catholic church near Wilmington, Delaware, where he spent some time at his son Beau’s grave with Beau’s daughter, Natalie. Beau Biden died of cancer at age 46 in 2015.

The two candidates have spent the final days barnstorming half a dozen battleground states, with Pennsylvania emerging as perhaps the most hotly contested. Biden will have made at least nine campaign stops in Pennsylvania between Sunday and Tuesday.

Biden’s polling lead has forced Trump to play defense; almost every competitive state was carried by him in 2016.

(Reporting by Trevor Hunnicutt in Scranton, Pennsylvania, and Doina Chiacu in Washington; Additional reporting by Steve Holland and Susan Heavey in Washington; Michael Martina in Detroit; Nathan Layne in McConnellsburg, Pennsylvania; and Daniel Trotta; Writing by Joseph Ax and John Whitesides; Editing by Paul Thomasch)

U.S. drone sale to Taiwan crosses key hurdle, nears approval: sources

By Mike Stone and Patricia Zengerle

WASHINGTON (Reuters) – The sale of four sophisticated U.S.-made aerial drones to Taiwan has crossed a key hurdle in Congress and is at the last stage of approval, sources said on Monday, a deal likely to add to already strained ties with China.

The $600 million deal would be the first such sale since U.S. policy on the export of sophisticated and closely guarded drone technology was loosened by the Trump administration.

Reuters reported in recent weeks on the administration moving ahead with four other sales of sophisticated military equipment to Taiwan, with a total value of around $5 billion, as it ramps up pressure on China and concerns rise about Beijing’s intentions toward the island.

The U.S. State Department could formally notify Congress of the sale later this week, one of the people said. The formal notification gives Congress 30 days to object to any sales, but this is unlikely given broad bipartisan support for the defense of Taiwan.

The four MQ-9 SeaGuardian drones, made by General Atomics, would come with associated ground stations and training. While the drones are armable, they will be outfitted with surveillance equipment, the people said.

Reuters reported in September that sales of major weapons systems to Taiwan were making their way through the U.S. export process.

On Oct. 21, the State Department sent notifications to Congress for the first tranche of arms sales to Taiwan. They included truck-based rocket launchers made by Lockheed Martin Corp, Rocket System (HIMARS) Standoff Land Attack Missile Expanded Response (SLAM-ER) missiles and related equipment made by Boeing Co, and external sensor pods for F-16 jets.

On Oct. 26 the United States moved ahead with the proposed sale of 100 cruise missile stations and 400 land-based Harpoon anti-ship missiles made by Boeing Co.

Beijing considers Taiwan a wayward province that it has vowed to bring under control, by force if necessary. Washington considers it an important democratic outpost and is required by law to provide it with the means to defend itself.

(Reporting by Mike Stone and Patricia Zengerle in Washington, D.C.; Editing by Bernadette Baum and Dan Grebler)

Senate to vote on Republican coronavirus aid bill opposed by Democrats

By Richard Cowan

WASHINGTON (Reuters) – The U.S. Senate was set to vote on Thursday on a Republican bill providing around $300 billion in new coronavirus aid, far below the $3 trillion Democrats insist is needed to stimulate an ailing economy and help people struggling through the pandemic.

In what could be the final vote on coronavirus relief in Congress before the Nov. 3 presidential and congressional elections, Republicans and Democrats appeared to be deadlocked over the next steps in responding to a virus that has killed more than 190,000 people in the United States and nearly 900,000 globally.

If Senate Majority Leader Mitch McConnell fails, as expected, to get the 60 votes needed in the 100-member chamber to advance his latest bill, lawmakers will likely focus on wrapping up other work within the next couple weeks so they can return to their home states to campaign for re-election in November.

Earlier this year, Congress quickly passed four major bills providing about $3 trillion to respond to the COVID-19 crisis. The Democratic-controlled House of Representatives passed a bill in May that would provide another $3 trillion in aid. But gridlock has since prevailed.

Some Republican senators expressed doubts on Wednesday that a compromise coronavirus bill would emerge quickly if McConnell’s latest “skinny” bill is rejected on Thursday in the Republican-controlled chamber.

“There’s always some possibility,” said Senator Richard Shelby, adding: “Unless something really broke through, it’s not going to happen.”

The Republican bill would renew a federal unemployment benefit, but at a lower level than Democrats sought. It also would set new protections for businesses against liability lawsuits during the pandemic, which Democrats have labeled a “poison pill.”

An array of other initiatives, including aid to state and local governments, a second round of direct federal payments to households and bailouts for U.S. airlines during the economic downturn were not addressed in the Republican bill and could be considered in a possible post-election session of Congress.

(Reporting by Richard Cowan; Editing by Scott Malone and Peter Cooney)

Congress faces coronavirus, government funding battles as summer recess ends

By Patricia Zengerle and Richard Cowan

WASHINGTON (Reuters) – The U.S. Congress faces a tight deadline to avoid a government shutdown as lawmakers begin returning to Washington next week, complicated by bitter conflicts between Republicans and Democrats over the next package of coronavirus aid.

The Republican-led Senate is due back on Tuesday, while the Democratic-led House of Representatives plans to hold votes on bills starting the following week.

With congressional elections on Nov. 3, both chambers have very few days left to finish work as lawmakers plan to campaign in their home states for much of October.

The federal fiscal year ends on Sept. 30, so they will have to scurry to reach a deal on legislation funding government programs and averting a partial shutdown that could be especially damaging to lawmakers facing re-election in November.

On Thursday, White House Press Secretary Kayleigh McEnany expressed optimism that agreement will be reached in a timely way.

Congress is widely expected to pass a temporary measure mainly funding the government at current levels, leaving budget decisions for after Election Day.

But the issue is complicated by rancor over how best to address the coronavirus, especially amid the yawning federal budget deficit.

On Wednesday, the nonpartisan Congressional Budget Office said the fiscal 2020 deficit would hit $3.3 trillion, or 16% of gross domestic product, fueled by emergency pandemic aid already enacted into law.

More than $3 trillion in coronavirus relief was enacted earlier this year. But the Republican-led Senate left town last month without taking up another $3 trillion aid package the House passed in May or an alternative.

The two parties are sharply divided, but there are also disputes among Trump’s fellow Republicans. Many of the Senate’s 53 Republicans are on record opposing additional federal coronavirus relief, and most of the others want to pass a far smaller bill than the House’s.

One senior Senate Republican aide said disagreement among Republicans was so great that it was not clear whether a smaller, partisan bill could come up for a vote. Senate Democratic Leader Chuck Schumer has said he opposes a so-called “skinny” coronavirus bill and his party could block one from passing.

Alternatively, lawmakers could tuck coronavirus relief into the must-do government funding bill. Provisions could include extra unemployment benefits to replace the $600-per-week payments that expired in July, measures to prevent evictions or aid for schools or local governments.

But a spokesman for House Speaker Nancy Pelosi told Reuters that Democrats want a “clean” government-funding bill. That usually means a measure without controversial add-ons.

Republican President Donald Trump is running for re-election, and one- third of the 100-member Senate and all 435 House seats are up for grabs when voters head to the polls on Nov. 3.

A government shutdown just before the elections, as the coronavirus pandemic continues, could be particularly damaging to Republican prospects since they control the White House and Senate.

(Reporting by Patricia Zengerle and Richard Cowan; editing by Jonathan Oatis)

Mnuchin to testify Sept. 1 before House coronavirus panel

WASHINGTON (Reuters) – U.S. Treasury Secretary Steven Mnuchin will face lawmakers’ questions over stalled coronavirus aid negotiations between the Trump administration and Congress next week when he testifies before a House of Representatives panel, lawmakers said on Wednesday.

The Sept. 1 hearing “will examine the urgent need for additional economic relief for children, workers, and families and the Administration’s implementation of key stimulus programs,” the House Select Subcommittee on the Coronavirus Crisis said in a statement.

The hearing will be Mnuchin’s first congressional testimony since talks on a new round of $1 trillion to $3 trillion in federal coronavirus aid collapsed in early August.

No intensive talks between Mnuchin, White House Chief of Staff Mark Meadows, House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer have taken place since then.

President Donald Trump subsequently signed an executive order partially extending supplemental unemployment benefits and deferring payment of some payroll taxes, but implementation details are unclear.

The focus of congressional action also shifted to the U.S. Postal Service, with House Democrats last Saturday passing a $25 billion funding bill aimed at thwarting planned service cuts and ensuring delivery of mail-in ballots for the November election. Republicans have declared the measure dead.

(Reporting by Susan Heavey and David Lawder; Editing by Andrew Heavens and Nick Macfie)

Factbox: Coronavirus in U.S. Congress: 17 members have tested or been presumed positive

WASHINGTON (Reuters) – At least 17 members of the U.S. House of Representatives and Senate – nine Republicans and seven Democrats – have tested positive or are presumed to have had COVID-19, with Senator Bill Cassidy becoming the latest on Thursday.

Here is a look at lawmakers affected by the virus:

RESIDENT COMMISSIONER JENNIFFER GONZALEZ COLON

Gonzalez, resident commissioner of Puerto Rico and the U.S. territory’s sole representative in Congress, said that she tested positive for COVID-19 on Facebook, days after accompanying federal officials on a visit to Puerto Rico’s pharmaceutical industry.

SENATOR BILL CASSIDY

Cassidy, a Louisiana Republican, decided to self-quarantine for 14 days and contact those with whom he may have had contact after testing positive for the virus, according to a statement released by his office on Aug. 20.

“I am strictly following the direction of our medical experts and strongly encourage others to do the same,” the 62-year-old senator, himself a physician, said in the statement.

REPRESENTATIVE RODNEY DAVIS

Davis, an Illinois Republican, said in a statement on Aug. 5 that he tested positive for the novel coronavirus after running a fever.

“If you’re out in public, use social distancing, and when you can’t social distance, please wear a mask,” Davis, 50, said in the statement.

REPRESENTATIVE RAUL GRIJALVA

Grijalva, an Arizona Democrat, tested positive for the coronavirus and went into isolation, he said in a statement on Aug. 1.

Grijalva expressed frustration with the reluctance of some Republican lawmakers to wear masks, which can slow the spread of the coronavirus.

REPRESENTATIVE LOUIE GOHMERT

The Texas Republican, 66, a staunch conservative, said on July 29 he tested positive in a prescreening at the White House but did not have any symptoms.

“It’s really ironic, because a lot of people have made a big deal out of my not wearing a mask a lot. But in the last week or two, I have worn a mask more than I have in the whole last four months.”

REPRESENTATIVE MORGAN GRIFFITH

The Virginia Republican, 62, a member of the conservative Freedom Caucus, said in mid-July that he had tested positive. His office said he did not have significant symptoms.

REPRESENTATIVE TOM RICE

The South Carolina Republican, 62, said on Facebook in mid-June that he, his wife and son had all tested positive for the coronavirus but all were “on the mend.”

SENATOR TIM KAINE

The Virginia Democrat and former vice presidential candidate, 62, said in mid-May that he and his wife had tested positive for coronavirus antibodies.

SENATOR BOB CASEY

Casey, 60, a Pennsylvania Democrat, tested positive for coronavirus antibodies in May, but pledged to keep wearing a mask.

REPRESENTATIVE NEAL DUNN

The Florida Republican, 67, a former surgeon, said in April that he had gone to the emergency room after not feeling well and later tested positive for the coronavirus.

REPRESENTATIVE JOE CUNNINGHAM

A Democrat from South Carolina, Cunningham, 38, said on March 27 he had tested positive for the coronavirus.

REPRESENTATIVE MIKE KELLY

Kelly, 72, a Republican from Pennsylvania, tested positive for the coronavirus in late March at a drive-through testing site. He told an interviewer that it took him about a month to recover and that he lost 30 pounds (14 kg).

SENATOR RAND PAUL

The Kentucky Republican, 57, said on March 22 that he had tested positive and was in quarantine, but was feeling fine. After he returned to work, Paul still did not wear a mask and said it was because he believed he was immune.

REPRESENTATIVE MARIO DIAZ-BALART

The Florida Republican, 58, tested positive in mid-March, saying the symptoms “pretty much hit me like a ton of bricks.” After his health improved, Diaz-Balart said he would participate in a plasma donation program to help people with serious or life-threatening infections of COVID-19.

REPRESENTATIVE BEN MCADAMS

The Utah Democrat also caught the virus in March. He was hospitalized and needed oxygen. After his release, he warned others to take the virus seriously. “I’m young, I’m 45 years old, I’m healthy, I exercise every day, and it hit me really hard,” he told ABC.

REPRESENTATIVE NYDIA VELAZQUEZ

Velazquez, 67, a Democrat from New York, said in March that she had been diagnosed with a presumed case of the coronavirus, although she had not been tested.

REPRESENTATIVE SETH MOULTON

The Massachusetts Democrat, 41, said in March that he and his wife were in self-quarantine after experiencing coronavirus-like symptoms. The congressman said they did not, however, qualify for testing.

(Reporting by Susan Cornwell and David Morgan; Editing by Scott Malone and Alistair Bell)

Pelosi: Democrats willing to cut COVID-19 bill in half to get a deal

WASHINGTON (Reuters) – U.S. House of Representatives Speaker Nancy Pelosi said on Tuesday that Democrats in Congress are willing to cut their coronavirus relief bill in half to get an agreement on new legislation with the White House and Republicans.

“We have to try to come to that agreement now,” Pelosi said in an online interview with Politico. “We’re willing to cut our bill in half to meet the needs right now. We’ll take it up again in January. We’ll see them again in January. But for now, we can cut the bill in half.”

But her remarks did not signal a new position for Democrats, according to a senior aide.

The Democratic-led House passed legislation with over $3 trillion in relief in May. This month, Democrats offered to reduce that sum by $1 trillion, but the White House rejected it.

The two sides remain about $2 trillion apart, with wide gaps on funding for schools, aid to state and local governments, and enhanced unemployment benefits.

(Reporting by David Morgan; Editing by Chris Reese and Chizu Nomiyama)

Hopes for fresh round of U.S. coronavirus relief fade as Congress goes home

By David Morgan

WASHINGTON (Reuters) – The prospects for a deal in the U.S. Congress to help Americans suffering due to the coronavirus pandemic dimmed on Friday, with the Senate and House of Representatives in recess and no fresh talks scheduled with President Donald Trump’s negotiators.

After a week that the leaders of the Democratic and the Republican parties spent blaming each other for a breakdown in talks, lawmakers were not due to reconvene until next month, though the leaders of both parties said they could recall their members with 24 hours notice if a deal emerged.

The two sides formally remained about $2 trillion apart, with wide gaps on funding for schools, aid to state and local governments, and unemployment pay. Trump on Thursday added that he opposed any money to help the U.S. Postal Service handle an expected flood of mail-in ballots for the Nov. 3 elections, though he later said he would not veto a bill that included it.

An impasse over $600-a-week in enhanced unemployment benefits, which expired on July 31, kept financial markets on edge as the Commerce Department reported weaker-than-expected July retail sales growth due to the effects of the spiraling pandemic and the cessation of the enhanced unemployment payments.

The unemployment payments had helped the U.S. economy by buttressing consumer spending, according to Federal Reserve officials and economists. Trump tried to act alone on Saturday with a memorandum proposing an additional $300 per week in unemployment, though economists questioned the effectiveness of the limited measure.

Meanwhile, the number of U.S. coronavirus infections approached 5.3 million on Friday, with deaths topping 167,000.

U.S. share prices dropped earlier this week when Republican Senate Majority Leader Mitch McConnell and Democratic House Speaker Nancy Pelosi disclosed there were no coronavirus talks scheduled. Stocks also weakened on Friday on July retail sales data.

But House Republican leader Kevin McCarthy on Friday contended that investors are looking for “surgical” action on coronavirus aid rather than the comprehensive approach sought by Democrats with the $3 trillion-plus Heroes Act the House passed in May.

“If we went forward with what the Democrats asked for in that $3 trillion? I believe the market would drop hard because it would put greater debt on all taxpayers,” McCarthy told CNBC.

Democrats offered to reduce their proposal by $1 trillion during negotiations with White House officials last week. The White House rejected the offer.

A Reuters/Ipsos poll published early this week found that Americans blame both parties for the inaction.

(Reporting by David Morgan; Editing by Scott Malone and Jonathan Oatis)