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)

U.S. COVID-19 aid bill talks ongoing as jobless benefit nears end

By Susan Heavey

WASHINGTON (Reuters) – Negotiations over another coronavirus relief bill continue, the No. 2 Democrat in the U.S. House of Representatives said as a federal jobless benefit was set to expire on Friday with no sign of a deal between the White House and Democrats.

“We’re going to be negotiating every minute that is possible,” despite the Republican-led Senate’s adjournment for the weekend, House Majority Leader Steny Hoyer told MSNBC in an interview.

Lawmakers and the White House are at odds over efforts to further shore up the economy and manage the novel coronavirus pandemic that has left tens of millions of Americans out of work and killed at least 152,384 people in the United States.

In a meeting on Thursday night between top White House officials and congressional Democratic leaders, negotiations focused on an extension of the expiring unemployment benefit.

Senate Majority Leader Mitch McConnell sent senators home for the weekend without reaching a deal to extend the extra $600 per week unemployment benefits many received amid the outbreak.

According to a person familiar with the closed-door negotiations, the White House proposed reducing the $600 weekly payment to $400 for the next four months. While that was a move toward the demands of House Speaker Nancy Pelosi and Senate Democratic Leader Chuck Schumer, the source said they rejected it as insufficient.

On Thursday, Senate Republicans tried, without success, to pass a bill reducing the jobless benefit to $200 per week.

For weeks, McConnell has said that any deal with Democrats would require a shield for companies and schools from liability lawsuits as they reopen during the pandemic.

The source, who asked not to be identified, said the White House hinted that it could embrace a deal without that provision.

Besides the $600 “enhanced” payment, Democrats are seeking a wide-ranging economic stimulus bill that would include about $1 trillion in aid to state and local governments experiencing plunging revenues during the economic downturn.

In mid-May, the Democratic-controlled House passed a $3 trillion bill that the Republican Senate has ignored.

“We’re here, we’re on the phone. We will be negotiating with those who want to get to a reasonable place,” Hoyer told MSNBC.

More details on the White House position may emerge when Trump’s spokeswoman Kayleigh McEnany gives a news briefing scheduled for 10:30 a.m. EDT (1430 GMT). Pelosi is also scheduled to talk to reporters at 10:45 a.m. (1445 GMT).

Trump national security adviser O’Brien tests positive for coronavirus

By Steve Holland

WASHINGTON (Reuters) – U.S. national security adviser, Robert O’Brien, has become the highest ranking official in President Donald Trump’s inner circle to test positive for the coronavirus.

Announcing the infection on Monday, the White House said in a statement there was no risk of exposure to Trump or Vice President Mike Pence.

The announcement caught some White House staff off guard, as there had not been an internal memo about it, one source said. Because of the regular testing regimen, White House officials do not reliably wear masks while working in the West Wing.

An administration official said O’Brien had not had contact with the president in several days. The NSC did not immediately respond to questions about O’Brien.

The White House statement said: “He (O’Brien) has mild symptoms and has been self-isolating and working from a secure location off site. There is no risk of exposure to the president or the vice president. The work of the National Security Council continues uninterrupted.”

O’Brien, who took over as national security adviser from John Bolton last September, had traveled to Paris in mid-July to represent the United States at Bastille Day ceremonies. He met French President Emmanuel Macron while there.

The virus has been disruptive for Trump, who last week was forced to cancel plans for the Republican convention in Jacksonville, Florida, where he was to be formally nominated for a second term.

A U.S. military member who works at the White House as a valet tested positive for coronavirus in May as did Pence’s press secretary.

(Reporting by Steve Holland and Alexandra Alper; Writing by Susan Heavey and Lisa Lambert; Editing by Chris Reese and Howard Goller)

U.S. Republicans to unveil coronavirus aid proposal as time runs out on jobless benefits

By Susan Cornwell and David Lawder

WASHINGTON (Reuters) – U.S. Senate Republicans on Monday are expected to unveil a $1 trillion coronavirus aid package hammered out with the White House, a starting point for negotiations with Democrats as unemployment benefits that have kept millions of Americans afloat are set to expire.

White House Chief of Staff Mark Meadows told reporters on Sunday that the plan just needed a few clarifications before Senate Majority Leader Mitch McConnell could unveil it on Monday afternoon.

Meadows and U.S. Treasury Secretary Steven Mnuchin said their agreement in principle with Senate Republicans would include an extension of supplemental unemployment benefits that aims to replace 70% of laid off workers’ lost wages.

On Friday, an extra $600 per week in supplemental unemployment benefits is due to expire, severing a financial lifeline for laid-off workers and a key support for consumer spending.

But the extra funds – in some cases exceeding a workers’ former wages – was a sticking point for many Republicans, helping to delay agreement during a week of wrangling over the party’s negotiating position.

Some Republicans had complained about the high price tag; the federal government has already spent $3.7 trillion to cushion the economic blow from pandemic-forced shutdowns.

Mnuchin and Meadows earlier on Sunday floated the idea of a piecemeal approach to coronavirus aid, first addressing unemployment and demands by businesses and schools to be shielded from coronavirus-related lawsuits, while tackling other issues later.

“We are going to be prepared, on Monday, to provide unemployment insurance extension that would be 70% of wages,” Meadows said on ABC’s “This Week” program on Sunday.

DEMOCRATS’ DEMANDS

Democrats decried the Republican delay as U.S. coronavirus cases passed the 4 million mark, a milestone for a pandemic that has killed more than 146,000 people in the United States and thrown tens of millions out of work.

House Speaker Nancy Pelosi said on CBS’ “Face the Nation” on Sunday that if necessary, the House would stay in session until a deal is passed and added that Democrats would not accept a measure urged by Republicans to include liability protections for employers.

“What we will not support is what they’re saying to essential workers: ‘You have to go to work because you’re essential, we place no responsibility on your employer to make that workplace safe and if you get sick you have no recourse because we’ve given your employer protection,'” she said.

Pelosi has said that House Democrats would pursue the $3 trillion coronavirus aid bill that they passed in May, which would extend the extra $600 a week in unemployment benefits through the end of 2020.

The Republican plan will include another round of direct payments of $1,200 for individuals, White House economic adviser Larry Kudlow told CNN. He said it also would extend a federal moratorium on housing evictions contained in previous relief legislation.

Senate aides said the Republican plan also have more help for small businesses, $105 billion for schools, $16 billion for coronavirus testing, and legal protections for business that are reopening.

(Reporting by Susan Cornwell and David Lawder; Editing by Peter Cooney and Gerry Doyle)

U.S. drugmaker stocks fall ahead of Trump’s pricing executive orders

(Reuters) – Shares of U.S. drugmakers fell on Friday, ahead of executive orders by President Donald Trump aimed at lowering drug prices.

With a re-election race underway and the coronavirus pandemic raging in the country, the White House is looking to bring down drug prices by reportedly considering tying them to what consumers outside the United States pay.

The S&P 500 was down 1.3%, with drugmakers such as Regeneron Pharmaceuticals Inc. and Pfizer Inc. weighing on the index. The declines were in line with a fall in broader markets.

Given that the speculation of an executive order on drug pricing surfaced roughly a month ago, stocks in the healthcare sector are unlikely to take a hit in the near term, Jefferies analyst Jared Holz said.

The administration’s move would likely be viewed more as political posturing than a critical moment for the pharmaceutical industry, Holz added.

Trump, who had previously urged lawmakers to rein in drug costs, will deliver remarks and sign the executive orders at 3 p.m. EDT (1900 GMT) on Friday, according to the president’s schedule issued by the White House on Thursday.

Drugmakers often negotiate rebates or discounts on their list prices in exchange for favorable treatment from insurers and other healthcare payers. As a result, insurers and covered patients rarely pay the full list price of a drug.

Elimination of rebates is likely not included in the orders, Politico reported on Thursday.

Such an order would be positive for health insurers UnitedHealth Group Inc, Cigna Corp and CVS Health, said Mizuho analyst Ann Hynes.

Cigna and CVS were among the handful of healthcare movers in the black.

Drugmakers Johnson & Johnson and Merck & Co Inc were trading down in morning trading.

(Reporting by Manas Mishra in Bengaluru; Editing by Shinjini Ganguli)

U.S. coronavirus cases pass 4 million as infections rapidly accelerate

By Lisa Shumaker

(Reuters) – The total number of coronavirus cases reported in the United States passed 4 million on Thursday, reflecting a rapid acceleration of infections detected in the country since the first case was recorded on Jan. 21, a Reuters tally showed.

It took the country 98 days to reach 1 million cases, but just 16 days to go from 3 million to 4 million, according to the tally. The average number of new U.S. cases is now rising by more than 2,600 every hour, the highest rate in the world.

As the pandemic has spread widely over the country, moving from the early epicenter of New York to the South and West, federal, state and local officials have clashed over how to fight it, including over how and when to ease social and economic restrictions aimed at curbing the infection rate.

Whether to order the wearing of masks, a common practice in the rest of the world and recommended by the federal government’s own health experts, has become highly politicized, with some Republican governors particularly resistant.

Hostility to the idea appeared to be dwindling this week, however, including from the Republican administration of President Donald Trump, who once dismissed mask-wearing as an effort to be politically correct.

Trump, who faces falling poll numbers over his handling of the health crisis ahead of the November election, has long refused to wear a mask in public but this week encouraged Americans to do so.

While Trump did not issue a national mandate, U.S. Assistant Secretary for Health Brett Giroir on Thursday cited the importance of masks in “turning that tide.”

“We have to do our mitigation steps: wear a mask, avoid the crowds. We won’t see hospitalizations and deaths go down for a couple of weeks because of lagging indicators, but we are turning that tide,” Giroir told Fox News Network.

He also said the time it currently takes to get coronavirus test results back needs to be reduced. The huge surge in infections has created a testing backlog.

Quest Diagnostics Inc., one of the nation’s biggest medical test companies, said on Thursday it expects to cut week-long turnaround times for COVID-19 tests by more than half to get to “acceptable” levels by September.

‘THAT STUFF WORKS’

New Jersey Governor Phil Murphy on Thursday said measures such as wearing masks were helping to lower the numbers of deaths and new cases in his state, once one of the hardest hit.

“What the current data can tell us is that social distancing, wearing that face covering, that stuff works, and it tells us that everyone should go get tested,” the Democratic governor said at an event.

On Thursday, Florida reported a record one-day increase in COVID-19 deaths with 173 lives lost, according to the state health department. Alabama reported a record increase in cases for the fourth time this month.

Another partisan point of contention is whether schools should start fully opening in August despite concerns that doing so could cause infections to spike.

Trump has threatened to withhold federal funding if schools do not reopen, but he told a press briefing on Wednesday the decision would ultimately be up to state governors.

Administration officials have said a quicker re-opening is essential to get the cratering economy moving again, another central plank of Trump’s re-election campaign.

The White House said Trump would discuss the issue again on Thursday at a briefing at 5 p.m. EDT (2100 GMT).

(Additional reporting by Doina Chiacu, Writing by Sonya Hepinstall, Editing by Bill Berkrot)

U.S. Congress girds for a fight over new coronavirus aid bill

By David Morgan and Doina Chiacu

WASHINGTON (Reuters) – U.S. Senate Democrats are prepared to block Republicans from moving forward on a partisan coronavirus aid bill, the chamber’s top Democrat warned on Monday, as Republican leaders were expected to meet at the White House to discuss legislation.

The Republican-controlled Senate and Democratic-led House of Representatives have less than two weeks to hammer out a new relief package before enhanced unemployment benefits run out for tens of millions of American workers made jobless by the COVID-19 pandemic.

Senate Majority Leader Mitch McConnell and House Republican leader Kevin McCarthy were due to discuss legislation with President Donald Trump and Treasury Secretary Steven Mnuchin at the White House on Monday, a White House official said over the weekend.

But Senate Democratic leader Chuck Schumer warned Republicans not to try to move forward on their own legislation, saying Senate and House Democrats would unite to demand bipartisan action.

“We will stand together again if we must,” Schumer said in a letter to colleagues. “A bipartisan, bicameral process will result in a much better bill for the American people.”

Congress has so far passed legislation committing $3 trillion to the crisis. In the more than 12 weeks since Trump signed the last response law, the number of U.S. coronavirus cases has more than tripled to over 3.7 million.

Similar partisan standoffs preceded the last bills.

Senate Republican plans to unveil a coronavirus bill this week have been upstaged by a White House effort to eliminate billions of dollars for coronavirus testing and tracing from the legislation.

“That goes beyond ignorance. It’s just beyond the pale. Hopefully, it was a mistake and they’ll back off it, because it is so very wrong,” House Speaker Nancy Pelosi told MSNBC.

Republicans and Democrats appear to be far apart on what should be included in the next coronavirus package.

Republicans have circulated draft documents laying out liability protections for businesses, schools, government agencies and charities.

Democrats, who oppose liability protections, have pledged to fight for legislation akin to the $3 trillion bill that the House approved in mid-May. McConnell has said his bill would not cost more than $1 trillion.

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

Trump rebukes aide Navarro for attacking popular Fauci

By Steve Holland

WASHINGTON (Reuters) – President Donald Trump issued a rare rebuke of his senior adviser Peter Navarro on Tuesday, saying Navarro should not have written a scathing opinion piece about Anthony Fauci, a top government coronavirus expert who is hugely popular.

Navarro, a trade adviser who at times has expanded his reach within the Trump White House, launched an attack on Fauci in an article for USA Today.

“Dr. Anthony Fauci has a good bedside manner with the public, but he has been wrong about everything I have interacted with him on,” Navarro wrote.

The initial lack of a push-back from the White House for the article fed a belief that Navarro’s article was supported at the top levels of the White House.

But departing for a trip to Atlanta, Trump was asked whether Navarro had gone rogue.

“Well he made a statement representing himself. He shouldn’t be doing that. No, I have a very good relationship with Anthony,” Trump said.

A White House official said Trump did not endorse Navarro’s op-ed and that Navarro was told “explicitly in recent days to de-escalate the situation.” The official said that White House chief of staff Mark Meadows is “fully engaged” on the matter and that Meadows thought Navarro’s article was “unacceptable.”

Fauci is a member of the government’s coronavirus task force led by Vice President Mike Pence. The 79-year-old infectious diseases expert aided the search to treat the HIV disease in the 1980’s and is a revered figure for not letting politics intrude on his judgment.

“We’re all on the same team, including Dr. Fauci,” Trump said. “We all want to get rid of this mess.”

Tensions between Trump and Fauci have emerged at times with the president focused on getting Americans back to work and school while Fauci has urged caution to prevent the spread of infection.

Fauci, in an interview with The Atlantic, said the White House’s recent attacks have been a “major mistake on their part.”

“I can’t explain Peter Navarro. He’s in a world by himself,” Fauci said.

He said he had not spoken with Trump “in a while,” but had been working with Pence on the U.S. struggle to gain control of the virus.

(Reporting by Steve Holland; Editing by Howard Goller)

U.N. expert accuses White House of ‘onslaught’ against media

By Emma Farge

GENEVA (Reuters) – The U.N. special rapporteur on freedom of expression on Monday accused the White House of mounting an “onslaught” against the media and referred to a negative “Trump effect” on global press freedom.

In his last official press briefing before his six-year tenure ends later this month, David Kaye said in a series of forthright comments that he hoped “attacks” on U.S. journalists would end when President Donald Trump leaves office.

“Clearly the signature issue over the past four years now has been the way in which this particular president addresses the media: The way he denigrates the media, denigrates freedom of expression,” he told journalists in Geneva.

Kaye specified that the so-called onslaught consisted of criticism of reporters and spreading “disinformation,” as well as partnerships with conservative media organisations.

The White House did not immediately respond to a request for comment.

Asked about the impact of that on press freedom around the world, he said: “There clearly is a Trump effect, a very negative one,” adding that previous U.S. administrations had been more critical of attacks on the press, such as the killing of Saudi journalist Jamal Khashoggi. He added that the Trump administration has created a global culture of permissiveness.

Kaye also raised broad concerns about government crackdowns that has worsened with the COVID-19 pandemic in a trend he described as “very disturbing” and contributing to the spread of the disease.

“Unfortunately often under the guise of trying to restrict disinformation, governments have resorted to old tools of clamping down on the free flow of information,” he said, without naming specific countries.

He was also critical of China’s “highly repressive approach to freedom of expression” and urged resistance to this approach.

“I think that there’s a real challenge to the democratic world to deal with what China considers to be the managed Internet approach and its approach to managing freedom of expression generally,” he said.

(Reporting by Emma Farge; Editing by Andrew Heavens and Aurora Ellis)

White House names Kratsios as Pentagon acting tech chief

FILE PHOTO: The Pentagon in Washington, U.S., is seen from aboard Air Force One, March 29, 2018. REUTERS/Yuri Gripas/File Photo

By David Shepardson

WASHINGTON (Reuters) – The Pentagon confirmed on Monday that U.S. Chief Technology Officer Michael Kratsios is being tapped to serve as the acting Under Secretary of Defense for Research and Engineering overseeing the U.S. military’s massive R&D efforts.

Kratsios, who is President Donald Trump’s top technology policy advisor, will also serve as the acting Pentagon chief technology officer. Reuters reported the planned move earlier on Monday.

The Defense Department has the largest research and development budget in the federal government and Kratsios will oversee the Missile Defense Agency, the Defense Advanced Research Projects Agency (DARPA), the Defense Innovation Unit, Space Development Agency and the DoD Laboratory enterprise.

Defense Secretary Mark Esper said in a statement the Pentagon sought “someone with experience in identifying and developing new technologies and working closely with a wide range of industry partners. We think Michael is the right person for this job.”

On June 23, the Pentagon said its chief technology officer Mike Griffin, an outspoken advocate for space-based missile defense systems, and his deputy Lisa Porter would resign effective July 10 to set up their own company.

The Pentagon also confirmed Monday that Mark J. Lewis, director of Defense Research and Engineering for Modernization, will serve as Kratsios’ acting deputy at the Pentagon.

Kratsios will also oversee the agency’s Modernization Priorities, which include efforts on 5G, artificial intelligence, quantum computing, and microelectronics. Kratsios led the development of the White House’s national strategies for AI, 5G, and quantum computing.

Kratsios has also worked on autonomous vehicles, commercial drones and advanced manufacturing at the White House. He will retain his White House role along with the Pentagon assignment.

(Reporting by David Shepardson; Editing by Richard Chang)