Senate Republicans push back on McConnell’s $1 trillion U.S. coronavirus relief proposal

By David Morgan and Patricia Zengerle

WASHINGTON (Reuters) – Republicans in the U.S. Senate pushed back on Tuesday against their own party’s $1 trillion coronavirus relief proposal the day after it was unveiled by Majority Leader Mitch McConnell, sending some U.S. stocks downward.

McConnell and the chamber’s top Republicans unveiled the coronavirus aid package hammered out with the White House just four days before the expiration of expanded unemployment benefits keeping millions of Americans afloat during the crisis. The proposal would slash the federal benefit from $600 per week in addition to state unemployment, to $200.

Democrats have also rejected the package, calling it too small compared with their $3 trillion plan that passed the House of Representatives in May. Dissident Republicans criticized its expense.

McConnell touted the proposal as a “tailored and targeted” plan to reopen schools and businesses, while protecting companies from lawsuits.

Some U.S. stocks dropped as investors worried about the resurgence in coronavirus cases and awaited progress on the relief plan. [.N]

Republican Senator Lindsey Graham estimated that half the party’s members in the Senate would oppose the plan.

“I think if Mitch can get half the conference that’d be quite an accomplishment,” Graham told reporters. Graham said he considers this a war against the coronavirus. “You have to spend money when you’re in a war.”

Multiple Republican senators call the plan too costly.

“I’m not for borrowing another trillion dollars,” Republican Senator Rand Paul told reporters.

The Republican proposal would give many Americans direct payments of $1,200 each, provide billions in loans to small businesses, support hospitals and help schools reopen.

The federal supplemental unemployment benefit has been a financial lifeline for laid-off workers and a key support for consumer spending. Democrats quickly denounced the proposed cut as draconian when millions of Americans cannot return to shuttered workplaces.

PARTISAN DISPUTES

Many Republicans insist the unemployment payout encourages Americans to stay home rather than go back to work by paying them more than their previous wages. Their proposal would provide the $200 weekly payment in place until states create a system to provide a 70% wage replacement for laid-off workers.

Democrats said the $200 plan would damage the economy.

“People want to work, Republican friends. They just don’t have jobs to do it. We’re not going to let them starve while that happens,” Senate Democratic leader Chuck Schumer said.

Democrats also want money for state and local governments, which face multi-billion dollar budget shortfalls, with businesses closed and residents out of work.

“Our residents, our businesses, our families, they need direct federal support now,” said Savannah, Georgia, Mayor Van Johnson, one of a group of Democratic and Republican mayors on a conference call with reporters.

Bipartisan lawmakers questioned why funds for some programs that seemed to have nothing to do with the pandemic – such as $1.8 billion for a new Federal Bureau of Investigation headquarters – were in the proposal.

Schumer and Democratic House Speaker Nancy Pelosi were due to meet later on Tuesday with Treasury Secretary Steven Mnuchin, who had lunch with Republican senators.

The partisan wrangling comes as U.S. coronavirus cases have passed 4.3 million, with nearly 150,000 people killed in the country, and tens of millions out of work.

The Democratic-led House in May passed its $3 trillion coronavirus relief bill known as the “HEROES Act,” but the Republican-led Senate would not consider it.

McConnell acknowledged that the Republican “HEALS Act” was just a starting point for negotiations, and would need bipartisan support to become law.

“The HEALS Act is full of provisions that I would frankly dare my Democratic colleagues to actually say they oppose,” McConnell said.

(Reporting by David Morgan, Patricia Zengerle and Susan Cornwell in Washington; Additional reporting by Lisa Lambert in Washington; Writing by Patricia Zengerle; Editing by Scott Malone and Matthew Lewis)

White House team to meet House Democrats as talks for new coronavirus bill pick up

By David Morgan and Susan Cornwell

WASHINGTON (Reuters) – U.S. congressional negotiations aimed at hammering out an agreement on a new coronavirus aid package intensified on Tuesday as COVID-19 infections and deaths surged to record levels across the United States.

The Republican-led Senate, Democratic-controlled House of Representatives and the White House have less than two weeks to agree on a legislative package before assistance runs out for tens of millions of Americans made jobless by the coronavirus pandemic.

Negotiators, however, remained far apart over how much money to spend and which priorities to spend it on, as the United States leads the world with more than 3.8 million coronavirus cases and over 140,900 deaths.

Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows met with Senate Republicans at midday and were scheduled for a discussion with House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer later in the afternoon.

Asked if a deal could be worked out by the end of the week, Pelosi replied with a laugh: “The end of the week? You mean the month. I’m hoping for the end of the month.”

Senate Majority Leader Mitch McConnell said Republicans would soon unveil a new coronavirus bill that is expected to have a $1 trillion price tag.

He said it would include $105 billion for schools; assistance for small businesses; direct payments to individuals and families; help for businesses to meet the cost of protecting employees and customers; money for vaccines, diagnostics and treatments; and liability protection for businesses, healthcare facilities, churches, charities and government agencies.

Democrats are proposing $175 billion to help elementary and secondary schools cope with the pandemic and have said they are determined to fight for provisions in a $3 trillion bill that passed the House in May and includes aid to state and local governments, extended unemployment insurance and protections for workers.

“An outcome will require bipartisan discussions. I do not believe there will be anything in our bill that our Democratic colleagues should not happily support,” McConnell said on the Senate floor.

Schumer called on Republicans to begin bipartisan negotiations now rather than first produce their own bill. “I urge all of my Republican colleagues to abandon their one-party, one-chamber approach before it’s too late and immediately begin bipartisan, bicameral negotiations,” he said.

President Donald Trump has called for a payroll tax cut to be included in legislation, a provision Meadows described on Tuesday as “a very high priority.” But Democrats, including House Majority Leader Steny Hoyer, said there was little enthusiasm for such a move.

Trump is seeking a payroll tax cut ahead of the November election and sees it as a major stimulus for the pandemic-stricken U.S. economy, according to the White House. Democrats have said such a move is unnecessary and could threaten Social Security benefits for the elderly.

(Reporting by David Morgan, Susan Cornwell and Richard Cowan; Editing by Scott Malone, Andrew Heavens, Jonathan Oatis and Dan Grebler)

Trump threatens ‘very long’ U.S. government shutdown

A pedestrian walk past the U.S. Capitol ahead of a possible partial government shut down in Washington, U.S., December 20, 2018. REUTERS/Joshua Roberts

WASHINGTON (Reuters) – U.S. President Donald Trump on Friday threatened a “very long” government shutdown just hours ahead of a midnight deadline, calling on the Senate to pass spending legislation that includes his $5 billion demand for border wall funding and seeking to shift blame for a holiday showdown to Democrats.

The Republican-led Senate had already approved funds for the government through Feb. 8 without money for the wall. But Trump pushed Republican allies in the House of Representatives on Thursday to use the short-term funding bill as leverage to force through the border wall money despite Democratic objections.

In a series of ten early-morning tweets on Friday, the president urged Senate Majority Leader Mitch McConnell to take up the amended bill from the House. Trump, who last week said he would be “proud” to preside over a shutdown, sought to blame Senate Democrats, whose support is needed to reach the 60 votes needed for passage.

Republicans currently have a narrow 51-49 majority in the Senate.

“If the Dems vote no, there will be a shutdown that will last for a very long time,” he wrote on Twitter.

“Senator Mitch McConnell should fight for the Wall and Border Security as hard as he fought for anything,” he tweeted. “He will need Democrat votes, but as shown in the House, good things happen.”

Three-quarters of government programs are fully funded through next Sept. 30, including those in the Defense Department, Labor Department and Health and Human Services.

But funding for other agencies, including the Department of Homeland Security, the Justice Department and Agriculture Department, is set to expire at midnight on Friday. A shutdown would leave a number of federal workers without a paycheck at Christmas.

If the House measure is put to a vote in the Senate, Democrats have pledged to prevent it from getting the votes it needs for passage.

“The bill that’s on the floor of the House, everyone knows it will not pass the Senate,” Senate Democratic Leader Chuck Schumer told reporters late Thursday.

It was not yet clear what would happen in that case. The partial government shutdown could begin, or lawmakers could work to find a solution that Trump finds acceptable.

Trump also called on McConnell to use the so-called “nuclear option” to force a Senate vote on legislation with just a simple majority, rather than the 60 votes currently needed.

The nuclear option would allow the chamber to approve legislation with a simple majority in an extreme break from Senate tradition that McConnell has so far resisted.

White House spokeswoman Sarah Sanders on Friday said Trump would stay in Washington rather than go to his Mar-a-Lago resort in Florida for the holidays as planned, but said she hoped the Senate would not vote down the bill.

“We hope they’ll step up,” she told reporters at the White House.

Trump’s border wall was a key campaign promise in the 2016 election, when he said it would be paid for by Mexico, and sees it as a winning issue for his 2020 re-election campaign.

(Reporting by Richard Cowan, Ginger Gibson and Susan Heavey; Editing by Kieran Murray, Sam Holmes and Jeffrey Benkoe)

Senate Republican leader embraces Trump immigration plan

Senate Majority Leader Mitch McConnell (R-KY) arrives for a news conference on Capitol Hill in Washington, U.S., February 6, 2018. REUTERS/Joshua Roberts

By Richard Cowan

WASHINGTON (Reuters) – U.S. Senate Republicans on Tuesday turned up the heat on Democrats seeking protections for young “Dreamer” immigrants as Senate Majority Leader Mitch McConnell embraced President Donald Trump’s demands for broad changes to the country’s immigration policies.

In announcing his support for legislation that would help immigrants who were brought illegally to the United States as children, McConnell also threw his weight behind building a U.S.-Mexico border wall and sharply curtailing visas for the parents and siblings of immigrants living in the United States legally.

“This proposal has my support and during this week of fair debate I believe it deserves support of every senator who’s ready to move beyond making points and actually making a law,” McConnell, a Republican, said in a speech on the Senate floor.

Even some Republicans, however, have expressed skepticism that such broad, fundamental changes in U.S. immigration law can pass the Senate by the Thursday deadline that No. 2 Republican Senator John Cornyn urged late on Monday.

Also on Monday, Democratic Senator Dick Durbin, who is leading the charge for Dreamers, told reporters that he thought early Senate votes on immigration legislation would begin with “expansive” measures that will fail to win the 60 votes needed to clear procedural hurdles.

Then, Durbin said, senators will be forced to move “toward the center with a moderate approach.”

But at least for now, Republicans were holding a tough line. Republican Senator Tom Cotton, interviewed on Fox News, said Trump’s immigration plan “is not an opening bid for negotiations. It’s a best and final offer.”

That ran counter to statements Trump has made in recent days, including early on Tuesday in which he said in a tweet that “Negotiations on DACA have begun.”

DACA is the Deferred Action for Childhood Arrivals program, which Democratic former President Barack Obama initiated in 2012 and which has allowed around 700,000 Dreamers to legally study and work in the United States temporarily. Last September, Trump announced he would terminate the program on March 5.

During testimony before the Senate Budget Committee on Monday, White House Budget Director Mick Mulvaney said he thought that a deal on immigration legislation will be reached “and that we have full funding on the (border) wall” of $18 billion over two years.

Durbin and other Democrats have talked of the possibility of a bill that provides for a pathway to citizenship for Dreamers and additional border security, which could include the construction of more border fencing and other high-tech tools to deter illegal immigrants.

(Reporting By Richard Cowan, additional reporting by Katanga Johnson; Editing by Bernadette Baum and Jonathan Oatis)