WASHINGTON (NEXSTAR) — In a tweet sent Saturday from Walter Reed Medical Center, President Donald Trump pushed for another coronavirus relief package that both Republicans and Democrats agree will include a new round of direct payments to most Americans.
“OUR GREAT USA WANTS & NEEDS STIMULUS. WORK TOGETHER AND GET IT DONE,” tweeted Trump. “Thank you!”
House Speaker Nancy Pelosi said Friday she thinks Trump’s coronavirus diagnosis could help move negotiations forward on a bipartisan coronavirus relief package.
“This kind of changes the dynamic because here,” Pelosi said in an interview with MSNBC, “they see the reality of what we have been saying all along along. This is a vicious virus.”
According to Pelosi’s staff, she and Treasury Secretary Steven Mnuchin spoke more than an hour Friday. Earlier in the day, Pelosi said she and Mnuchin were “coming to terms” on a relief deal.
That relief for most Americans is likely to come in the form of a second $1,200 check or direct deposit.
Amid a heated election season, new direct payments for Americans could largely viewed as a big win for Trump. When the first round of checks was distributed, Trump’s signature was on each of the payments. If Trump was able to get a second round of relief distributed as people are heading to the polls for early voting, it would certainly be something to brag about in a period where the president can’t publicly campaign.
Thought Pelosi is optimistic, a deal is far from done. She said in the interview with MSNBC the GOP and Democratic leadership still has to deal with the language of the legislation, which remains a major roadblock. In particular, Senate Majority Leader Mitch McConnell’s insistence on a liability shield for businesses fearing COVID-related lawsuits after they reopen their doors.
Talks between Mnuchin and Pelosi have been closely held. As of Saturday, the two sides were roughly $600 million apart.
As negotiations dragged out without coming to terms, Pelosi pushed a $2.2 trillion COVID-19 relief bill through the House Thursday night.
A $1.6 trillion White House plan, offered Wednesday, gave ground with a $250 billion proposal on funding for state and local governments. Mnuchin’s offer of a $400 per week jobless benefit put him in the same ballpark as Democrats backing a $600 benefit.
However, the GOP price tag of $1.6 trillion or more could drive many Republicans away, however, even as it failed to satisfy Pelosi.
“We raised our offer to $1.6 trillion,” White House Press Secretary Kayleigh McEnany told reporters Thursday. “It’s one that she is not interested in.”
Pelosi’s move to pass her larger relief measure in the House was largely symbolic and puts lawmakers no closer to actually delivering aid such as more generous weekly unemployment payments, extended help for small businesses and especially troubled economic sectors such as restaurants and airlines, and another round of $1,200 direct payments to most Americans.
The vote was advertised as a way to demonstrate Democrats were making a good faith offer on coronavirus relief, but 18 Democrats abandoned the party and sentiment remains among more moderate Democrats to make more concessions and guarantee an agreement before Election Day.
Republicans controlling the Senate remained divided.
White House Chief of Staff Mark Meadows has drawn a line in the sand and warns that Trump won’t approve legislation that approaches a $2 trillion threshold. But there’s plenty of wiggle room in numbers so large, and the revenue picture for many states is not as alarming as feared when Democrats passed more than $900 billion for state and local governments in May.
Pelosi said Thursday that the administration is still far short on aid to state and local governments and in other areas.
“Some of you have asked, ‘Isn’t something better than nothing?’ No,” Pelosi told reporters, citing the “opportunity cost” for provisions sought by Democrats but potentially lost in any rush to agreement.
At issue is a long-delayed package that would extend another round of $1,200 direct stimulus payments, restore bonus pandemic jobless benefits, speed aid to schools and extend assistance to airlines, restaurants and other struggling businesses. A landmark $2 trillion relief bill in March passed with sweeping support and is credited with helping the economy through the spring and summer, but worries are mounting that the recovery may sputter without additional relief.
Pelosi has largely assumed a hard line so far. But she’s never had a reputation for leaving large sums of money on the table and her tactical position — facing a White House and Senate controlled by Republicans — is not as strong as her demands might indicate.
The White House also seems far more eager for a deal than McConnell. Any compromise that could pass both the House and Senate is sure to alienate a large chunk of Senate Republicans. McConnell expressed support for the talks and another bill, but isn’t leaning into the effort. But some of his members appear worried that the deadlock is harming their reelection bids.
“I’d like to see another rescue package. We’ve been trying for months to get there,” McConnell told reporters Thursday. “I wish them well.”
The Associated Press contributed to this report.