By Andrew Taylor and Lisa Mascaro

Senate Democrats scuttled a scaled-back GOP coronavirus rescue package on Thursday, saying the measure shortchanged too many pressing needs as the pandemic continues its assault on the country.

The mostly party-line vote capped weeks of wrangling over a fifth relief bill that all sides say they want but are unable to deliver. The bipartisan spirit that powered earlier aid measures has given way to election-season political combat and name-calling. The 52-47 vote fell well short of what was needed to overcome a filibuster and seems likely to end hopes for coronavirus relief before the November election.

The $500 billion measure is roughly half the size of legislation promoted by GOP leaders this summer but was too big for most conservatives. Instead, the GOP bill was stripped back to focus on school aid, jobless benefits, and help for small businesses. That maximized Republican support even as it alienated Democrats, who say such a piecemeal approach would leave out far too many vulnerable people.

The result was a predictable impasse and partisan tit for tat as the congressional session limps to its preelection close. It's becoming plain that all Congress will do before the Nov. 3 election is pass legislation to avert a government shutdown. The outcome of the election promises to have an outsize impact on what might be possible in a postelection lame-duck session, with Democrats sure to press for a better deal if Democrat Joe Biden unseats President Donald Trump.

Senate Minority Leader Chuck Schumer, D-N.Y., predicted that Thursday's GOP defeat would prompt Majority Leader Mitch McConnell, R-Ky., back to the negotiating table, as an earlier filibuster in March helped make the $2 trillion rescue bill more generous.

“But (Thursday's) bill is not going to happen because it is so emaciated, so filled with poison pills, so partisanly designed,” Schumer said.

McConnell crafted the measure to permit his GOP colleagues to go on record in favor of popular provisions such as another round of “paycheck protection” help for smaller businesses, help for schools to reopen, and supplemental jobless benefits. He again blasted Democrats on Thursday, saying they are still pushing a liberal wish list and are willing to scuttle provisions with widespread backing to deny Trump a victory.

“Today every senator will either say they want to send families the relief we can agree to or they can send families nothing," McConnell said.

There’s no indication yet that bipartisan talks that crumbled last month will restart. Top lawmakers and aides offered glum assessments both publicly and privately.

The stalemate is politically risky for all sides heading into the fall election, which will decide not only the presidency but also the control of Congress.

While nationwide coronavirus cases appear to be at a plateau, there is still widespread economic hardship and social unease in homes, schools, and businesses affected by closures. Experts warn that infections are expected to spike again if Americans fail to abide by public health guidelines for mask-wearing and social distancing, especially amid colder weather and flu season.

McConnell said Democrats have not backed off what he said were unreasonable demands. He accused Democrats of acting as though it is to their political advantage to deny Republicans and Trump a victory on the virus so close to Election Day.

Schumer said Republicans are “so out of touch." He predicted Republicans and the White House “may yet be forced to come back to the table because COVID is the major issue that’s facing the American people.”

The stalemate has left McConnell and Republicans to say that they support a short-term spending measure, called a continuing resolution, or CR, that would avert a government shutdown at month’s end and set up a postelection lame-duck session to deal with any unfinished Capitol Hill legislation, which could include coronavirus relief.

The Republican measure in Thursday's test vote would:

It did not contain a new round of $1,200 direct payments going out under Trump’s name, and the new $300 weekly jobless benefit would expire just after Christmas, on Dec. 27. The GOP bill also lacked money for election security that lawmakers from both parties have supported.

Democrats say the GOP bill is far too small and leaves out important priorities, including hundreds of billions of dollars for state and local governments, more generous jobless benefits, and help for renters and homeowners, along with other provisions in the House Democrats’ $3.5 trillion relief bill that passed in May.

Share:
More In Politics
End of Child Tax Credit Could Mean Slide Back Into Increasing Child Poverty
Millions of Americans with young children have relied on the child tax credit since the federal government began issuing checks in July 2021. The last round of payments was sent out just before the Christmas holiday — at the same time as the omicron variant surged. Leah Hamilton, associate professor of social work at Appalachian State University, joined Cheddar to discuss what the end to the tax credit means as the U.S. sees the end of many relief programs and its highest number of COVID cases since the start of the pandemic. "It'll become harder for families to meet their basic needs, increasing national childhood poverty rates and the proportion of families who have difficulty putting food on the table, maintaining stable housing, and paying their bills," Hamilton said. She also pointed to research that the credit as a long-term investment in children offsets claims that it contributes to macroeconomic impacts like inflation.
President Biden Speaks with Ukrainian President Ahead of Russia Meeting
U.S. President Joe Biden spoke with Ukrainian President Volodymyr Zelensky over the week-end, just days after he spoke with Russian President Vladimir Putin. The call comes as Washington prepares to meet with Moscow on January 10, as tensions mount over Russia's military build up near its border with Ukraine. Cheddar News speaks with Mustafa Tameez, a former advisor to the U.S. Department of Homeland Security, about the issue.
NYT Piece Claims Silicon Valley Investors and Founders Contorted Legal Tax Break to Avoid Taxes on Investment Profits
Several Silicon Valley insiders are being accused of contorting a 1990s-era tax break to avoid taxes on millions of dollars of investment profits. The tax break is known as the qualified small business stock exemption, and it allows early investors in certain companies to avoid half of the taxes on up to $10 million in capital gains. A piece recently published in the New York Times says venture capital firms like Andreessen Horowitz replicated the tax exemption by giving shares of companies to friends and family, who would otherwise face a 23.8% capital gains bill. The CEO of Roblox is also accused of replicating the tax break for his family members at least 12 times. Although the loophole known as 'stacking' is considered to be legal, the Times piece implies that the exemption has been manipulated for the ultra-wealthy to become more wealthy. Greycroft co-founder and Chairman Emeritus Alan Patricof joins Cheddar News' Closing Bell to discuss.
This Year In Trivia
Hena Doba and Azia Celestino recap some of the biggest stories of the year, and learn a thing or two while they're at it. It's This Year in Trivia!
Looking Ahead to Regulating Uber, Lyft, and the Gig Economy in 2022
The push to regulate the gig worker economy is gaining steam as the share of workers who participate in freelancing through businesses like Uber and Lyft have also exponentially grown during the pandemic. Employment attorney Mark Kluger, founding partner at Kluger Healey, LLC, joined Cheddar to break down how the battle to reclassify gig workers will continue in the new year, and why the issue continues to generate conflict. "More and more workers are using gig work as their primary source of income and as a result of that they are not like employees in the sense that they don't have benefits like health insurance," Kluger noted.
2022 Promises a Mixed Bag of Market Predictions
2021 saw markets continue to be impacted by the onslaught of the coronavirus pandemic -most recently in the form of the Omicron variant- in addition to the global supply chain shortage, and increased inflation. But it wasn't all bad news, as crypto soared throughout the year, and meme stocks continued to have a moment. With the year coming to a close, investors are keeping an eye out to see if they should expect more of the same in the new year. Chris Vecchio, Senior Analyst, at DailyFX tells us what market trends to be on the watch for in 2022.
Load More