Lawmakers Balk at Trump Administration's Latest Stimulus Offer
WASHINGTON—Both Senate Republicans and House Democrats signaled opposition to the Trump administration’s $1.8 trillion offer for coronavirus relief aid, again clouding the prospects for an agreement before Election Day.
During a conference call Saturday morning with White House chief of staff Mark Meadows and Treasury Secretary Steven Mnuchin,
several Senate Republicans said they were opposed to passing another large aid package, according to people familiar with the call. Mr. Meadows said he would bring their concerns back to President Trump, suggesting he expected a less than warm reception by joking that as a result the lawmakers would have to attend his funeral, according to the people.
The pushback from Senate Republicans comes after the White House increased its offer on Friday to House Speaker Nancy Pelosi (D., Calif.) in the on-again, off-again effort to reach an agreement on a fifth aid package before the election. The new bid calls for more than $1.8 trillion in spending, with about $400 billion of the funds reallocated from unspent money from earlier legislation, bringing the total cost to about $1.5 trillion, according to a person familiar with the offer.
That proposal comes closer to the $2.2 trillion plan that House Democrats approved last week, though major differences between the Democrats and the White House remain. In a letter to House Democrats Saturday, Mrs. Pelosi wrote that the new offer from the White House “amounted to one step forward, two steps back.”
“At this point, we still have disagreement on many priorities, and Democrats are awaiting language from the Administration on several provisions as the negotiations on the overall funding amount continue,” Mrs. Pelosi wrote.
Mrs. Pelosi listed several policy provisions—including baby care and aid for state and local governments—that remain at issue in the negotiations.
The sharp opposition from Senate Republicans will further complicate the Trump administration’s efforts to reach a compromise with Democrats. Before Friday, Mr. Mnuchin had signaled that the administration could support a $1.6 trillion package, a smaller figure that many Republicans had also opposed.
Senate Republicans last month rallied around an aid proposal that calls for about $650 billion in spending, offset by about $350 billion in savings elsewhere for a total cost of around $300 billion. GOP lawmakers told the Trump administration officials on Saturday that the Republican bill should be the starting point for talks with Democrats, according to the people familiar with the call, calling such a large package unnecessary.
One major source of concern among Senate Republicans is the White House proposal’s provision to expand the Affordable Care Act’s subsidies for people who have lost jobs, and with them their employer-sponsored health care, during the pandemic.
Many Republicans oppose an expansion of the ACA, which they have criticized and sought to repeal for years. Many Republicans also view its restrictions on abortion funding as insufficient and see expanding the subsidies as compounding that problem. They conveyed to Mr. Mnuchin that such a provision was unacceptable, according to GOP aides.
During the call, Sen. John Barrasso (R., Wyo.) said a proposed expansion to eligibility for Affordable Care Act subsidies would represent an “enormous betrayal,” according to the people.
Democrats said Republicans were simply opposing an expansion of the ACA and noted that the health law already bars the use of federal funds made available to consumers through subsidies and tax credits for most abortions, with some exceptions for *******, ******* and when the life of a pregnant woman is in danger. Health plans on exchanges may cover other abortions, but they have to set aside separate funding so it doesn’t come from federal subsidies.
The effort to reach an agreement on another round of aid to households and businesses struggling during the coronavirus pandemic has whipsawed all week. Mr. Trump called off the negotiations on Tuesday after a phone call with top Republicans, including Senate Majority Leader Mitch McConnell (R., Ky.). Mr. McConnell told Mr. Trump during that call that any agreement between Mr. Mnuchin and Mrs. Pelosi would be difficult to pass in the GOP-controlled Senate, according to a person familiar with the call.
Mr. Trump and the administration then pivoted to pushing for legislation focused on individual aid priorities, including assistance for airlines, before restarting talks on a broader package with Democrats. The $1.8 trillion offer made on Friday is the largest proposal from the Trump administration throughout the talks, which began in July and have dragged on for weeks.
Absent another relief deal, economists say, temporary layoffs will become permanent and more businesses will close, features of a typical recession rather than the temporary shock and quick rebound policy makers hoped for earlier this year.
The risks that Congress provides too little support to the economy are greater than the risks of providing too much, Federal Reserve Chairman Jerome Powell said this week. The former could lead to a longer, weaker recovery, he said.
Write to Andrew Duehren at
andrew.duehren@wsj.com and Lindsay Wise at
lindsay.wise@wsj.com
Continue Reading
