White House, Democrats show no sign of budging on U.S. coronavirus aid

By Susan Cornwell and Susan Heavey

WASHINGTON (Reuters) – A breakdown in talks between the White House and top Democrats in Congress over how to help tens of millions of Americans suffering in the coronavirus pandemic entered a fifth day on Wednesday, with neither side ready to resume negotiations.

U.S. Treasury Secretary Steven Mnuchin said there may be no deal to reach with House of Representatives Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer, with more than 5.16 million COVID-19 cases in the United States.

Pelosi described the two sides as “miles apart” with a “chasm” between them.

The global pandemic has taken a particularly heavy toll on the United States, where it has killed more than 164,000 people, more than any other country, and made tens of millions of workers jobless, who have now seen a further hit after $600 per week in additional federal unemployment benefits expired last month.

Congress has already approved about $3 trillion in assistance for families, hospitals, healthcare workers, state and local governments, vaccine research and testing.

Talks on a new package broke down last Friday after Democrats offered to reduce their demand for more than $3 trillion in additional aid by about $1 trillion, if the White House agreed to come up by a similar amount from an initial $1 trillion Republican proposal.

Sticking points include the size of an extended unemployment benefit, aid to state and local governments, money for schools to reopen and other issues.

Asked if deal was still possible, Mnuchin told Fox Business Network: “I can’t speculate. If the Democrats are willing to be reasonable, there’s a compromise. If the Democrats are focused on politics and don’t want to do anything that’s going to succeed for the president, there won’t be a deal.”

But Pelosi reiterated Democratic calls for the White House to “meet in the middle.”

“Until they’re ready to do that, it’s no use sitting in a room and letting them tell us that states should go bankrupt,” she told MSNBC. “As a practical matter, they’re going to have to come to the table.”

Senate Majority Leader Mitch McConnell, who did not join any of the negotiating sessions, blamed Pelosi and Schumer for the ongoing impasse.

“Republicans wanted to reach agreement on all these issues where we could find common ground and fight over the last few issues later.” McConnell said on the Senate floor.

“But the speaker and the Democratic leader say nothing can move unless very one of these unrelated far-left items tags along.”

A Reuters/Ipsos poll released on Wednesday found that Americans divide blame pretty evenly between Democrats and Republicans.

(Reporting by Susan Cornwell and Susan Heavey; Writing by David Morgan; Editing by Toby Chopra, Chizu Nomiyama and Jonathan Oatis)

Trump signs coronavirus relief orders after talks with Congress break down

By Jeff Mason

BEDMINSTER, N.J. (Reuters) – President Donald Trump signed executive orders on Saturday partly restoring enhanced unemployment payments to the tens of millions of Americans who lost jobs in the coronavirus pandemic, as the United States marked a grim milestone of 5 million cases.

Negotiations broke down this week between the White House and top Democrats in Congress over how best to help Americans cope with the heavy human and economic toll of the crisis, which has killed more than 160,000 people across the country.

Trump said the orders would provide an extra $400 per week in unemployment payments, less than the $600 per week passed earlier in the crisis. Some of the measures were likely to face legal challenges, as the U.S. Constitution gives Congress authority over federal spending.

“This is the money they need, this is the money they want, this gives them an incentive to go back to work,” the Republican president said of the lower payments. He said 25% of it would be paid by states, whose budgets have been hard hit by the crisis.

Republicans have argued that higher payments were a disincentive for unemployed Americans to try to return to work, though economists, including Federal Reserve officials, disputed that assertion.

Trump’s move to take relief measures out of the hands of Congress drew immediate criticism from some Democrats.

“Donald Trump is trying to distract from his failure to extend the $600 federal boost for 30 million unemployed workers by issuing illegal executive orders,” said Senator Ron Wyden, the top Democrat on the Senate Finance Committee. “This scheme is a classic Donald Trump con: playacting at leadership while robbing people of the support they desperately need.”

The Democratic-majority House of Representatives passed a coronavirus support package in May which the Republican-led Senate ignored.

Democratic presidential candidate Joe Biden called the orders a “series of half-baked measures” and accused Trump of putting Social Security “at grave risk” by delaying the collection of payroll taxes that pay for the program.

Trump also said he was suspending collection of payroll taxes, which pay for Social Security and other federal programs, an idea that he has repeatedly raised but has been rejected by both parties in Congress. He said the suspension would apply to people making less than $100,000 per year.

His orders would also stop evictions from rental housing that has federal financial backing and extend zero percent interest on federally financed student loans.

Trump initially played down the disease’s threat and has drawn criticism for inconsistent messages on public health steps such as social distancing and masks.

He spoke to reporters on Saturday at his New Jersey golf club, in a room that featured a crowd of cheering supporters.

FAR APART

Nearly two weeks of talks between White House officials and congressional Democrats ended on Friday with the two sides still about $2 trillion apart.

House Speaker Nancy Pelosi had pushed to extend the enhanced unemployment payments, which expired at the end of July, at the previous rate of $600 as well as to provide more financial support for city and state governments battered by the crisis.

Pelosi and Senate Minority Leader Chuck Schumer on Friday offered to reduce the $3.4 trillion coronavirus aid package that the House passed in May by nearly a third if Republicans would agree to more than double their $1 trillion counteroffer.

White House negotiators Treasury Secretary Steven Mnuchin and Chief of Staff Mark Meadows rejected the offer.

The $1 trillion package that Senate Majority Leader Mitch McConnell unveiled late last month ran into immediate opposition from his own party, with as many as 20 of the Senate’s 53 Republicans expected to oppose it.

Trump did not rule out a return to negotiations with Congress.

“I’m not saying they’re not going to come back and negotiate,” he said on Saturday. “Hopefully, we can do something with them at a later date.”

Democrats have already warned that such executive orders are legally dubious and would likely be challenged in court, but a court fight could take months.

Trump has managed to sidestep Congress on spending before, declaring a national emergency on the U.S.-Mexico border to shift billions of dollars from the defense budget to pay for a wall he promised during his 2016 election campaign.

Congress passed legislation to stop him, but there were too few votes in the Republican-controlled Senate to override his veto – a scenario that would likely play out again with less than 90 days to go before the Nov. 3 presidential election.

(Reporting by Jeff Mason, additional reporting by Raphael Satter, Brad Brooks, and Rich McKay; Writing by Scott Malone; Editing by Diane Craft, Daniel Wallis, Jonathan Oatis and Sonya Hepinstall)

Explainer: Trump wants to bypass U.S. coronavirus aid talks with executive order. Can he?

By Patricia Zengerle

WASHINGTON (Reuters) – With congressional Democrats and White House negotiators so far unable to agree on a deal to salve the heavy economic toll of the coronavirus pandemic, President Donald Trump has threatened to bypass Congress with an executive order.

Some of his proposals exceed his legal authority and would face immediate legal challenges, though in at least one case House of Representatives Speaker Nancy Pelosi, the nation’s top Democrat, told him to just go ahead.

WHAT DOES TRUMP WANT TO DO?

Trump said on Twitter he is considering executive orders to continue expanded unemployment benefits, reinstate a moratorium on evictions, cut payroll taxes and continue a suspension of student loan repayments amid a health crisis that has killed nearly 160,000 Americans.

He and administration officials negotiating with Congress have not provided specifics.

CAN HE DO IT?

The Constitution puts control of federal spending in the hands of Congress, not the president, so Trump does not have the legal authority to issue executive orders determining how money should be spent on coronavirus.

Democrats said executive orders would prompt a court fight, but legal action could take months.

Trump has sidestepped Congress on spending before. In 2019, he declared a national emergency at the border with Mexico to shift billions of dollars from the Pentagon budget to help pay for a promised wall that was the cornerstone of his 2016 election campaign.

Congress passed legislation to stop him, but there were too few votes in the Republican-controlled Senate to override his veto.

“There has to be a political will to do that and there has to be a priority given by members of Congress to assert their institutional interests,” said Mark Rozell, dean of the Schar School of Policy and Government at George Mason University in Virginia. “And that just isn’t there right now.”

WOULD DEMOCRATS OR REPUBLICANS OBJECT?

The $600 per week enhanced unemployment benefit in the massive “Cares Act” passed in March has been a major sticking point in negotiations. Democrats want to continue the federal payment, which expired on July 24, to the tens of millions who have lost their jobs in the crisis and have rejected a short-term extension. Trump’s fellow Republicans have argued that is too high a payment, contending it is a disincentive to work.

The moratorium on evictions was less contentious, and could be covered by reprogramming money that Congress has already approved for housing that has not been spent. Pelosi on Thursday said an order extending the moratorium “would be a good thing.”

Congressional Republicans and Democrats alike reject cutting the payroll tax, which is collected from both employers and employees to fund Social Security and Medicare. A cut would disproportionately benefit Americans with high salaries, and threaten funding for the popular programs for retirees. It also only benefits people still getting paychecks, not those who have lost their jobs.

The parties are closer together on student loans. Democrats included a 12-month extension of the student loan payment suspension in a relief bill the House passed in May. Republican senators did not include student loan relief in the proposal they unveiled in July. However, there is a Republican plan in Congress to extend the suspension for three months.

(Reporting by Patricia Zengerle; Editing by Scott Malone and Nick Zieminski)

Exclusive: Taiwan in talks to make first purchase of sophisticated U.S. drones – sources

FILE PHOTO: Flags of Taiwan and U.S. are placed for a meeting between U.S. House Foreign Affairs Committee Chairman Ed Royce speaks and with Su Chia-chyuan, President of the Legislative Yuan in Taipei, Taiwan March 27, 2018. REUTERS/Tyrone Siu

By Mike Stone

WASHINGTON (Reuters) – The United States is negotiating the sale of at least four of its large sophisticated aerial drones to Taiwan for the first time, according to six U.S. sources familiar with the negotiations, in a deal that is likely to ratchet up tensions with China.

The SeaGuardian surveillance drones have a range of 6,000 nautical miles (11,100 km), far greater than the 160-mile range of Taiwan’s current fleet of drones.

While the sale of the unmanned aerial vehicles has been tacitly authorized by the State Department, two of the people said, it is not known whether the U.S. officials have approved exporting the drones with weapons attached, one of them said.

The deal has to be approved by members of Congress who may receive formal notification as soon as next month, two of the people said. Congress could choose to block a final agreement.

It would be the first drone sale after President Donald Trump’s administration moved ahead with its plan to sell more drones to more countries by reinterpreting an international arms control agreement called the Missile Technology Control Regime (MTCR).

While Taiwan’s military is well-trained and well-equipped with mostly U.S.-made hardware, China has a huge numerical superiority and is adding advanced equipment of its own.

Taiwan submitted its request to buy armed drones early this year, one of the people familiar with the talks said. The United States last week sent Taiwan the pricing and availability data for the deal, a key step that denotes official approval to advance the sale. It is, however, non-binding and could be reversed.

A deal for the four drones, ground stations, spares, training and support could be worth around $600 million using previous sales as a guide. There could also be options for additional units in the future, one of the people said.

The island is bolstering its defenses in the face of what it sees as increasingly threatening moves by Beijing, such as regular Chinese air force and naval exercises near Taiwan

Relations between Beijing and Washington – already at their lowest point in decades over accusations of spying, a trade war, the coronavirus and Hong Kong – could fray more if the deal gets the final go-ahead from U.S. officials. The Pentagon has said arms sales to Taiwan will continue, and the Trump administration has kept a steady pace of Navy warships passing through the Taiwan Strait.

China claims Taiwan as its own territory, and Beijing has never renounced the use of force to bring the self-ruled island under its control. Beijing has denounced the Trump administration’s increased support for Taiwan.

China’s sophisticated air defenses could likely shoot down a handful of drones, according to Bonnie Glaser, the director of the China Power Project at CSIS, a Washington think tank. But she still expects “China to scream about even the smallest arms sale that the U.S. makes to Taiwan because any sale challenges the ‘One China’ principle.”

“They get particularly agitated if they think it’s an offensive capability,” she said, adding that she expected the Trump administration to be less cautious than its predecessors.

The Taipei Economic and Cultural Representative Office in the United States did not respond to a request for comment.

“As a matter of policy we do not comment on or confirm proposed defense sales or transfers until they have been formally notified to Congress,” a State Department spokesman said.

ONLY FOR FEW U.S. ALLIES

The U.S. has been eager to sell Taiwan tanks and fighter jets, but the deal to sell drones would be notable since only a few close allies – including Britain, Italy, Australia, Japan and South Korea – have been allowed to purchase the largest U.S.-made drones.

Currently, the Taiwanese government has a fleet of 26 Albatross drones made by Taiwan’s National Chung-Shan Institute of Science and Technology, a quasi-defense ministry research agency, that can fly 160 nautical miles (300 km), or 80 before returning to base, according to records kept by the Bard Center for the Study of the Drone.

General Atomics Aeronautical Systems Inc’s SeaGuardian has an airframe that can handle carrying weapons – but only if contractually allowed by the U.S. government.

The United States has sold France unarmed MQ-9 Reapers which are similar to SeaGuardian’s, and later gave permission to arm them.

Last year, the United States approved a potential sale to Taiwan of 108 General Dynamics Corp M1A2 Abrams tanks worth around $2 billion as well as anti-tank and anti-aircraft munitions. A separate sale of 66 Lockheed Martin-made fighter jets also made it through the State Department’s process.

In recent weeks, China said it will sanction Lockheed Martin Co for involvement in the latest U.S. arms sale to Taiwan.

(Reporting by Mike Stone in Washington, D.C. ; Editing by Mary Milliken and Edward Tobin)

Congressional Democrats, White House set new round of coronavirus aid talks

By Patricia Zengerle

WASHINGTON (Reuters) – Top White House officials and Democratic leaders in the U.S. Congress will try again on Tuesday to narrow gaping differences over a fifth major coronavirus relief bill to help stimulate the economy and possibly provide new aid to the unemployed.

The two sides have reported some progress in recent days. But they remain far apart on a range of issues including unemployment benefits for workers made jobless by the epidemic, as well as liability protections for businesses and funding for schools, state and local governments and election security.

Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows were due to meet with Senate Republicans at a midday policy lunch, before resuming negotiations with House of Representatives Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer at 3:30 p.m. EDT (1930 GMT).

Federal Reserve officials are urging Congress and the White House to help the struggling U.S. economy. Tens of millions of Americans have lost their jobs during the crisis.

Congress passed more than $3 trillion in relief legislation early in the epidemic. But lawmakers missed a deadline last week to extend the $600 per week in enhanced unemployment payments that have played a key role in propping up the U.S. economy.

Democrats are pressing for another $3 trillion that would retain the $600 benefit and add nearly $1 trillion in assistance for state and local governments.

Senate Republicans, who have not taken part in the White House talks with Democrats, have proposed a $1 trillion package that would slash the unemployment payment to $200 a week and eventually move to 70% of wages.

Republicans say the $600 benefit – which is on top of state unemployment payments – discourages people from taking lower-paying jobs. A Fed official on Monday said there was little evidence to support that view.

Differences also remain on whether to extend a moratorium on housing evictions and Democrats’ demand for around $1 trillion in aid to state and local governments suffering revenue shortfalls as a result of the epidemic.

(Reporting by Patricia Zengerle; Writing by David Morgan and Richard Cowan; Editing by Scott Malone, Sam Holmes and Paul Simao)

Fauci to testify before U.S. House COVID-19 panel after being blocked by White House

By David Morgan

WASHINGTON (Reuters) – Dr. Anthony Fauci, the top U.S. infectious disease expert, will testify on Friday before a coronavirus subcommittee in Congress, weeks after President Donald Trump’s administration first refused to let him address the panel.

Fauci’s testimony comes at the end of a week when the pandemic’s tragic toll on the country has become far clearer. The United States on Wednesday experienced its 150,000th death from the disease — more than any other country — and data on Thursday showing a deep economic plunge.

Democrats said the Trump administration initially prevented Fauci from testifying to the panel by saying he was unavailable for the entire month of July and relented only after House Majority Whip James Clyburn wrote to Vice President Mike Pence.

A veteran of six Republican and Democratic administrations, Fauci has become the most familiar face of the administration’s coronavirus task force.

This week, Trump, who has often bristled against scientists’ advice on responding to the pandemic, bemoaned the degree to which Fauci is admired, saying “nobody likes me. It can only be my personality.”

U.S. Centers for Disease Control and Prevention Director Dr. Robert Redfield and Admiral Brett Giroir, assistant secretary at the Department of Health and Human Services, are also scheduled to testify before the Select Subcommittee on the Coronavirus Crisis.

Headed by Clyburn, the subcommittee was created this year to monitor the trillions of dollars approved by Congress to help the United States weather the health and economic impacts of the COVID-19 pandemic.

Earlier this week, Trump retweeted a post accusing Fauci and Democrats of suppressing the use of the drug hydroxychloroquine to treat the new coronavirus that included a link to a video of a group discounting the need for face masks amid the pandemic. The tweet was removed by social media companies.

(Reporting by David Morgan; Editing by Scott Malone and David Gregorio)

Trump: U.S. Senate Armed Services chairman will not change military bases’ names

By Patricia Zengerle

WASHINGTON (Reuters) – President Donald Trump on Friday said the chairman of the Senate Armed Services Committee, fellow Republican James Inhofe, will not change the names of military bases after Congress passed legislation to rename posts that honor leaders of the Confederate armies who fought against U.S. forces.

“I spoke to highly respected (Chairman) Senator @JimInhofe, who has informed me that he WILL NOT be changing the names of our great Military Bases and Forts, places from which we won two World Wars (and more!),” Trump wrote on Twitter.

The Senate and House of Representatives this week each passed their version of the National Defense Authorization Act, or NDAA, a massive annual bill setting policy for the Pentagon, including purchases from defense contractors.

One provision of the $740 billion legislation passed by both chambers was a requirement that the names of Confederate generals be removed from U.S. military facilities like the Army’s Fort Bragg in North Carolina and Fort Hood in Texas.

Tributes to those military leaders – and other slave owners – have been in focus during weeks of protests sparked by the police killings of Black Americans.

Trump, who has deployed federal forces against protesters he calls “anarchists,” promised to veto the NDAA – which has become law for 59 straight years – if the base-name provision remained in the final version.

Now that the Democratic-led House and Republican-controlled Senate have passed versions of the bill, it goes to conference, where lawmakers will come up with a compromise version.

It was not clear that Inhofe could change the provision, as any final bill must be supported by the Democratic and Republican lawmakers on the conference committee. However, congressional aides said there was no ban on such a change if negotiators agreed.

An Armed Services Committee spokeswoman pointed to Inhofe’s previous pledges to try to dilute the proposal to rename bases and other military assets named for Confederates.

A spokesman for Senator Jack Reed, the top Armed Services Committee Democrat, noted Reed’s view that the bipartisan provision has strong support and his commitment to keeping it in the final NDAA.

Inhofe is running for re-election in Oklahoma, which was not a state during the Civil War. Although some Native American tribes in what would become the state in 1907 sent soldiers to fight for the Confederacy, others rejected the alliance with the secessionists.

Before Trump rejected renaming the bases, senior Pentagon officials had said they were open to discussing the issue.

(Reporting by Patricia Zengerle; Additional reporting by Lisa Lambert and Idrees Ali, Editing by Franklin Paul and Chris Reese)

Trump backs more aid for Americans amid coronavirus: Scripps

WASHINGTON (Reuters) – U.S. President Donald Trump on Monday said he supported the idea of giving Americans a second round of financial aid amid the novel coronavirus pandemic.

Asked if he backed another payment for Americans, Trump told Scripps Networks in an interview that he backed sending out a second check. “We will be doing another stimulus package” with Congress, he added, saying the bipartisan measure would come “over the next couple of weeks probably.”

(Reporting by Susan Heavey)

George Floyd’s brother decries ‘a modern-day lynching’ in testimony to Congress

By David Morgan and Richard Cowan

WASHINGTON (Reuters) – George Floyd’s younger brother took his grief to the U.S. Congress on Wednesday with an impassioned plea that lawmakers not let his brother’s death be in vain, lamenting that he “didn’t deserve to die over $20” in what he called a lynching.

The House of Representatives Judiciary Committee held the first congressional hearing to examine racial injustice and police brutality following George Floyd’s May 25 death after a Minneapolis policeman knelt on his neck for nearly nine minutes. His death prompted a wave of protests in U.S. cities and abroad.

“They lynched my brother. That was a modern-day lynching in broad daylight,” Philonise Floyd, 42, of Missouri City, Texas, near Houston, told the committee, his voice breaking with emotion.

“His life mattered. All our lives matter. Black lives matter,” he added, wiping away tears.

The Democratic-led House is moving forward with sweeping reform legislation that could come to a vote by July 4, while Senate Republicans are crafting a rival plan.

George Floyd, a 46-year-old Houston native who had worked security at nightclubs, was unarmed when taken into custody outside a market where an employee had reported that a man matching his description tried to pay for cigarettes with a counterfeit bill.

“George wasn’t hurting anyone that day. He didn’t deserve to die over $20. I’m asking you, is that what a black man’s worth? $20? This is 2020. Enough is enough,” his brother said. “It is on you to make sure his death is not in vain.”

He buried his brother on Tuesday and described how they had not been able to say goodbye.

“I’m here to ask you to make it stop. Stop the pain,” Philonise Floyd testified. “George called for help and he was ignored. Please listen to the call I’m making to you now, to the calls of our family and the calls ringing on the streets of all the world.”

It is unclear whether Democrats and Republicans will be able to overcome partisan differences to pass legislation that President Donald Trump would be willing to sign.

Several Republicans pledged cooperation and voiced support for a pivotal provision that would scale back so-called qualified immunity protections that shield police from lawsuits by people suing for damages.

White House spokeswoman Kayleigh McEnany, who said the Republican president may take policy action on race and policing through an executive order, called reduced qualified immunity a “non-starter.” McEnany said Trump’s administration has nearly finalized plans to address police brutality that could be made public within days.

Police officer Derek Chauvin was fired after the incident and charged with second- and third-degree murder and manslaughter. George Floyd and Chauvin worked as security personnel at the same nightclub.

Philonise Floyd said Chauvin knew his brother and killed him with premeditation “just because he didn’t like him,” adding that “it has to have something to do with racism.”

The emotionally-charged hearing had lawmakers and witnesses including several civil rights advocates expressing sorrow over Floyd’s death, the latest in a series of killings of African-Americans by police that have sparked anger on America’s streets and fresh calls for reforms

POLITICAL DIVIDE

The hearing highlighted divisions in Congress and the country between those who want broad changes to policing practices and those who defend the work of law enforcement and blame any problems on, as Republican Representative Mike Johnson put it, a “few bad apples.”

“The vast, vast majority of law enforcement officers are responsible, hard-working, heroic first responders,” added Representative Jim Jordan, the committee’s top Republican.

“While we hold up human rights in the world, we obviously have to hold them up in our country,” said Representative Karen Bass, chairwoman of the Congressional Black Caucus, which crafted the legislation.

Angela Underwood Jacobs, a Republican witness whose police officer brother was slain during violent protests this month, urged lawmakers to promote a just society by investing in education, housing and job creation.

The Democratic legislation would ban police chokeholds and no-knock warrants, restrict the use of legal force, require police body cameras, make lynching a federal hate crime and take other steps to rein in misconduct.

(Reporting by David Morgan and Richard Cowan; Editing by Scott Malone and Will Dunham)

U.S. House to pass nearly $500 billion more in coronavirus aid on Thursday

WASHINGTON (Reuters) – The U.S. House of Representatives will pass Congress’ latest coronavirus aid bill on Thursday, House Speaker Nancy Pelosi said, paving the way for nearly $500 billion more in economic relief amid the pandemic.

Pelosi, in an interview on MSNBC on Wednesday, said House lawmakers were ready to then move on to a fifth effort to continue tackling issues swelling from the outbreak that has crushed the nation’s economy and battered its healthcare system.

“We’ll pass it tomorrow in the House,” the California Democrat said.

The bipartisan $484-billion package, which passed the Republican-led U.S. Senate on Tuesday, includes an additional $321 billion for a previously set up small business lending program that quickly saw its funds exhausted.

It also includes $60 billion for a separate emergency disaster loan program – also for small businesses – and $75 billion for hospitals and $25 billion for national coronavirus testing.

Pelosi said she hopes the newly provided funds will be able to flow to strapped employers and others as soon as possible after U.S. President Trump, who has backed the bill, signs it into law.

“This is absolutely urgent,” she told MSNBC.

She also said a subsequent fifth aid package should also include money to protect U.S. elections and the U.S. Postal Service.

(Reporting by Susan Heavey; additional reporting by Lisa Lambert; Editing by Andrew Heavens and Nick Zieminski)