By Andrew Taylor

Senate Majority Leader Mitch McConnell said Tuesday the Senate would vote on a trimmed-down Republican coronavirus relief package, though it has a slim chance of passage in the face of Democrats' insistence for more sweeping aid.

The Kentucky Republican released the approximately $500 billion measure as senators returned to Washington for an abbreviated pre-election session, as hopes are dimming for another coronavirus relief bill — or much else.

Republicans struggling to retain their Senate majority this fall have been divided, with some GOP senators in close races anxious to respond further to the pandemic, even as conservatives are tiring of all the spending and passing legislation in concert with liberal House Speaker Nancy Pelosi.

McConnell called the package "a targeted proposal that focuses on several of the most urgent aspects of this crisis, the issues where bipartisanship should be especially possible." They included school aid, new money for vaccines and testing, and a second round of the popular Paycheck Protection Program for smaller businesses.

Democrats are demanding a far larger bill, 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 billion relief bill that passed in May.

Republican senators such as Susan Collins of Maine are eager to show constituents they are continuing to work to ease the pandemic's disastrous impact on jobs, businesses, and health. But many Senate Republicans are resisting more spending and the scaled-back bill is roughly half the size of a measure McConnell unveiled earlier this summer.

McConnell's move Tuesday would clear the way for a Thursday test vote in which Democrats are sure to block the legislation. Pelosi and Senate Minority Leader Chuck Schumer, D-N.Y., said the bill "doesn't come close to addressing the problems and is headed nowhere."

McConnell's bill would provide $105 billion to help schools reopen, enact a shield against lawsuits for businesses and others that are powering ahead to reopen, create a scaled-back $300-per-week supplemental jobless benefit, and write off $10 billion in earlier debt at the U.S. Postal Service. There's $31 billion for a coronavirus vaccine, $16 billion for virus testing, and $15 billion to help child care providers reopen. There is additionally $20 billion for farmers.

The package will also include a school choice initiative sought by Texas GOP Sen. Ted Cruz and others that would provide a tax break, for two years, for people who donate to nonprofit organizations offering private school scholarships.

It would also provide for a $258 billion second round of paycheck protection subsidies.

But it won't contain another round of $1,200 direct payments going out under Trump's name. Pelosi, D-Calif., continues to demand a package totaling $2.2 trillion, and while Trump's negotiators have signaled a willingness to inch further in her direction, a significant gap remains.

Talks between top Democrats and the Trump administration broke off last month and remain off track, with the bipartisan unity that drove almost $3 trillion in COVID-19 rescue legislation into law this spring replaced by toxic partisanship and a return to Washington dysfunction.

Expectations in July and August that a fifth bipartisan pandemic response bill would eventually be birthed despite increased obstacles has been replaced by genuine pessimism. Recent COVID-related conversations among key players have led to nothing.

Democrats seem secure in their political position, with President Donald Trump and several Senate GOP incumbents lagging in the polls. Trump is seeking to sideline the pandemic as a campaign issue, and Republicans aren't interested in a deal on Democratic terms — even as needs like school aid enjoy widespread support.

Poisonous relationships among key leaders like Pelosi and White House Chief of Staff Mark Meadows give little reason for confidence about overcoming obstacles on the cost, scope, and details of a potential relief bill. Pelosi recently referred to Meadows as "whatever his name is," while the Meadows-run White House during a press briefing ran a video loop of Pelosi's controversial visit to a San Francisco hair salon.

The relationship between Pelosi and her preferred negotiating partner, Treasury Secretary Steven Mnuchin, is civil but isn't generating much in the way of results, other than a promise to avoid a government shutdown at the end of the month by keeping a government-wide temporary spending bill free of controversy. That measure is likely to keep the government running into December. It's likely to contain a bunch of lower-profile steps, such as an extension of the federal flood insurance program and a temporary reauthorization of spending from the highway trust fund.

But if talks continue to falter, there's little to keep lawmakers in Washington long, particularly with the election fast approaching.

The Senate returned Tuesday to resume its diet of judicial and administration nominations. The House doesn't come back until Sept. 14 for a schedule laden with lower-profile measures such as clean energy legislation and a bill to decriminalize marijuana. Some Democrats are expected to continue to take advantage of remote voting and may not return to Washington at all.

Share:
More In Politics
All Hands Celebrates Black History Month
All Hands celebrates Black History Month by highlighting achievements in inclusivity and paying homage to those who have fought for equal rights. Rep. Maxine Waters (D-CA) joins Cheddar News to discuss voter suppression; Damali Peterman, CEO of Breakthrough ADR, elaborates on the biggest barriers for Black professionals; Andre Perry, senior fellow of Brookings Institution, dives into student loans and the racial wealth divide; and lastly, BET CEO Scott Mills discusses the company's initiatives for 2022.
Black History Being Made On Capitol Hill
All month long Cheddar News is celebrating Black History Month. In our nation’s capital, Black history is being made right now. cheddar's own Arielle Hixon puts the spotlight on three lawmakers making that happen, Rep. Lauren Underwood (D-IL), Rep. Cori Bush (D-MO), and Sen. Tim Scott (R-SC).
Rep. Maxine Waters on Voter Suppression, SCOTUS During Black History Month
Representative Maxine Waters (D-Calif. 43rd District) joined Cheddar News to talk about the current political climate in America, including efforts to roll back voting rights in multiple states in light of Black History Month. "Why do we have to deal with those who still believe that somehow this country only belongs to the whites of the country and that somehow they have to do everything that they can to undermine our voting and do voters suppression to keep us from being influential and at the table by which to solve problems?" she asked. Waters chided "two Democrats" who she said were stymying attempts to rectify the issue and also spoke on President Biden’s promise to nominate a Black woman to the Supreme Court.
Interest Rates Remain Unchanged Though Hikes Loom
Wall Street saw another volatile day after the Federal Reserve left rates unchanged for now, with plans to raise rates in March at its next meeting in order to ease inflation. Fed Chair Jerome Powell said the Fed has not made decisions on the size of rate increases, adding that the Fed is not trying to get inflation below two-percent. Ken Johnson, CFA and Investment Strategy Analyst explains why Powell thinks that high inflation is a significant threat to the labor market.
Factorial Energy Raises $200 Million to Accelerate Commercialization of Its Solid-State Batteries for Electric Vehicles
Solid-state battery maker Factorial Energy recently raised $200 million in a Series D round led by Mercedes-Benz and Stellantis. Factorial says the funding will be used to accelerate commercial production and deployment of its solid-state battery technology, which the company says is safer, and offers up to 50% more driving range than current lithium-ion technology. Factorial also has joint development agreements (announced in late 2021) with Mercedes-Benz, Stellantis, and Hyundai, three of the top 10 global automotive manufacturers, to commercialize its batteries. Factorial CEO Siyu Huang joined Cheddar News' Closing Bell to discuss.
Load More