Senate Democrats, GOP Split Over New Coronavirus Aid--Update
April 09 2020 - 11:54AM
Dow Jones News
By Kristina Peterson and Andrew Duehren
Lawmakers clashed on the Senate floor Thursday over what should
be included in the next tranche of relief for the economic
devastation wrought by the coronavirus pandemic, with Republicans
and Democrats rejecting each other's plans and leaving uncertain
when more aid would be approved.
After a brief session, the Senate adjourned without reaching any
agreement on additional aid for small businesses and hospitals,
among other recipients. Lawmakers from both parties accused their
rivals of playing partisan games unfit for the urgency of a
crisis.
Democrats blocked an effort by Senate Majority Leader Mitch
McConnell (R., Ky.) to add $250 billion to a small-business aid
program that saw overwhelming demand when it launched last week
with $350 billion in loans. Mr. McConnell said that funding was
needed more urgently than other additional funds, such as for
hospitals.
Mr. McConnell said his bill made no policy changes, just more
spending. "I want to add more money to the only part of our
bipartisan bill that is currently at risk of running out of money,"
he said on the Senate floor. "The country cannot afford unnecessary
wrangling or political maneuvering."
But Democrats said the small-business loan program, called the
Paycheck Protection Program, needed changes to ensure that
less-sophisticated business owners can also access the funds.
Small-business owners have flooded banks with applications for the
loans, but many have struggled to get funds.
"It's not just in need of more money. It needs some important
fixes," Sen. Chris Van Hollen (D., Md.) said on the Senate floor.
Sen. Ben Cardin (D., Md.) called the Republicans' proposal a
"political stunt."
Republicans in turn then blocked a Democratic proposal to pair
modified small-business aid with funding for hospitals, food stamps
and state and local governments. Their bill reflected demands
issued by House Speaker Nancy Pelosi (D., Calif.) and Senate
Minority Leader Chuck Schumer (D., N.Y.) on Wednesday.
The Democrats' proposal would include $250 billion in new
funding for small businesses, with $125 billion of that aimed at
helping businesses that might have had trouble accessing the
initial batch of aid. The Democratic legislation also includes $100
billion for health-care providers, $150 billion in aid to states
and local governments, and a 15% increase in food assistance.
"If we want to address the economic crisis, we need to address
the health crisis that precipitated that," Mr. Van Hollen said.
Mr. McConnell indicated that he was open to the idea of
approving more funding for health-care workers -- but in future
legislation, not as part of the next infusion of small-business
aid.
"I'm in favor of even more funding for hospitals and providers
down the line," Mr. McConnell said. "Nobody thinks this will be the
Senate's last word on Covid-19. We don't have to do everything
right now."
Because lawmakers have taken an extended break from Washington
to prevent the spread of the disease among themselves, Congress
would need to pass any bill this week through voice vote or
unanimous consent, which individual members can block. Even after
the Senate impasse Thursday morning, negotiations on relief
legislation were expected to continue.
Treasury Secretary Steven Mnuchin on Thursday said the
administration was focused on advancing a narrow bill this week to
provide more money for the small-business lending program. The
popular program is aimed at helping firms cover payroll and other
essential expenses for roughly two months, and the loans can be
forgiven if businesses maintain the size of their workforce.
"The president has been very clear, he's happy to talk about
other issues such as hospitals and states in the next bill," Mr.
Mnuchin said in an interview with CNBC.
President Trump said on Wednesday he wanted the expanded
small-business aid to be passed this week.
"I think we have pretty good understanding with the Democrats,"
Mr. Trump said at the daily White House briefing. "Hopefully it's
going to be bipartisan. We do not have the time for the partisan
games. We don't want that, the obstruction."
Congress passed and President Trump signed a massive $2.2
trillion relief package less than two weeks ago in the latest in a
series of rescue packages a divided Washington has rushed into law.
But lawmakers from both parties said the mounting economic toll of
the pandemic was prodding them to do more.
"The economic consequences are proving to be more severe more
quickly than just about anybody had predicted," said Sen. Josh
Hawley (R., Mo.), who has been pushing a plan to restore workers'
paychecks by having the government cover 80% of employers' payroll
costs, up to the national median wage, at all firms affected by the
crisis.
Kate Davidson contributed to this article.
Write to Kristina Peterson at kristina.peterson@wsj.com and
Andrew Duehren at andrew.duehren@wsj.com
(END) Dow Jones Newswires
April 09, 2020 12:39 ET (16:39 GMT)
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