White House Leaves Stimulus to Congress after Months of Impasse

WASHINGTON — The Trump administration is stepping back from negotiations on a new stimulus package and leaving it up to Senate Majority Leader Mitch McConnell to revive long-stalled talks with House Speaker Nancy Pelosi, according to people familiar with the situation.
While the White House probably would consult with GOP lawmakers on details of a COVID-19 relief bill, it’s now unlikely to take the lead on talks, according to the people, who spoke on condition of anonymity to discuss internal deliberations. The White House would only take over if negotiations have to be restarted completely, the people said.
The White House didn’t respond to multiple requests for comment.
The move greatly diminishes the chances of a trillion dollar stimulus for the U.S. economy before January. President Donald Trump had committed to pursuing a large-scale stimulus after the election, even saying he would approve a $2 trillion bill, but has since focused on attempting to overturn President-elect Joe Biden’s victories in battleground states.
That leaves the negotiations at a stalemate, with neither McConnell nor Pelosi backing away from earlier positions, even as the further spread of the coronavirus threatens to weaken the recovery from earlier pandemic-induced shutdowns.
Federal Reserve Chair Jerome Powell said earlier this month that more fiscal stimulus is “absolutely essential” to U.S. economic recovery.
Treasury Secretary Steven Mnuchin had been leading negotiations with Pelosi, but they hit an impasse before Election Day, with the administration proposing about $1.9 trillion in spending, and Democrats at $2.4 trillion. A welter of policy issues, from aid to state and local governments to a Republican push for liability protections for businesses, had also prevented a deal.
McConnell has continued to insist on a much smaller package of about $500 billion, and recently cited the drop in the unemployment rate and progress on a COVID-19 vaccine as reasons to stick to that position.
He told reporters Thursday that more stimulus is needed, but only a targeted package like the one he proposed previously. As for the Democrats’ proposal for a much larger plan, he said, “That’s not a place I think we’re willing to go.”
His office declined to comment about the White House role in the talks.
Senate Minority Leader Chuck Schumer said Thursday that the $2.4 trillion House-passed bill must be the starting point to any new stimulus talks, reinforcing the stalemate with the Senate.
“We’re at the same place,” Pelosi said at a news conference with Schumer. “Even more so with the pandemic because look at these numbers. Look at these numbers. Look at the predictions of the scientific community.”
Pelosi didn’t respond to a question about whether she had spoken to anyone from the administration.
___
(c)2020 Bloomberg News
Distributed by Tribune Content Agency, LLC
In The News
Health
Voting
Economy
WASHINGTON — What consumes those inside the beltway and in mainstream media doesn’t always reflect the realities of mainstream Americans... Read More
WASHINGTON — What consumes those inside the beltway and in mainstream media doesn’t always reflect the realities of mainstream Americans or the communities in which they live. That was the consistent theme that emerged from last week’s “Building Resilient Communities” forum. Hosted by The Well News... Read More
WASHINGTON — Hard as it may be to believe, a revolution really did take place while we were all inside,... Read More
WASHINGTON — Hard as it may be to believe, a revolution really did take place while we were all inside, hoping the dark, early shadow of COVID-19 would somehow pass us by. According to Liz Wilke, principal economist with Gusto, a payroll, benefits and HR platform... Read More
WASHINGTON — Connie E. Evans, president and CEO of the Association for Enterprise Opportunity, smiled broadly Thursday as she surveyed... Read More
WASHINGTON — Connie E. Evans, president and CEO of the Association for Enterprise Opportunity, smiled broadly Thursday as she surveyed the early morning crowd gathered to hear her and other speakers at Charlie Palmer Steak. “It’s seldom, at least in my experience, that you get a... Read More
WASHINGTON (AP) — The countdown toward a possible U.S. government default is in the offing — with frictions between President Joe Biden... Read More
WASHINGTON (AP) — The countdown toward a possible U.S. government default is in the offing — with frictions between President Joe Biden and House Republicans raising alarms about whether the U.S. can sidestep a potential economic crisis. The Treasury Department projects that the federal government will on Thursday reach its... Read More
SAN FRANCISCO (AP) — Elon Musk was depicted Wednesday as either a liar who callously jeopardized the savings of “regular... Read More
SAN FRANCISCO (AP) — Elon Musk was depicted Wednesday as either a liar who callously jeopardized the savings of “regular people" or a well-intentioned visionary as attorneys delivered opening statements at a trial focused on a Tesla buyout that never happened. Lawyers on opposing sides drew... Read More
Microsoft is cutting 10,000 workers, almost 5% of its workforce, joining other tech companies that have scaled back their pandemic-era... Read More
Microsoft is cutting 10,000 workers, almost 5% of its workforce, joining other tech companies that have scaled back their pandemic-era expansions. The company said in a regulatory filing Wednesday that the layoffs were a response to “macroeconomic conditions and changing customer priorities.” The company said it... Read More