House Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Charles Schumer (D-N.Y.) on Wednesday threw their support behind using a bipartisan, compromise plan as the basis for COVID-19 relief talks, The Hill reported. “While we made a new offer to Leader McConnell and Leader McCarthy on Monday, in the spirit of compromise we believe the bipartisan framework introduced by Senators yesterday should be used as the basis for immediate bipartisan, bicameral negotiations,” the Democratic leaders said in a joint statement, referring to Senate Majority Leader Mitch McConnell (R-Ky.) and House Minority Leader Kevin McCarthy (R-Calif.). Prior to November’s election, Pelosi turned down a $1.8 trillion offer from Treasury Secretary Steven Mnuchin, who was negotiating on behalf of the Trump administration, citing major differences on policy details. McConnell has insisted on a “targeted,” $500 billion approach. The stakes for passing a relief bill during the lame-duck session are monumental. Two crucial unemployment programs are set to expire on Dec. 31, which would leave an estimated 12 million people with no income during the worst phase of the pandemic so far. The move to put a $908 billion compromise bill at the center of talks is a significant retreat from the $2.2 trillion HEROES Act that Democrats have been pushing in recent months, and will add pressure on McConnell to respond in kind. Other key programs, such as $600 in supplemental unemployment insurance and a forgivable loan program for small businesses called the Paycheck Protection Program (PPP) expired in the summer. While McConnell has repeatedly spoken of the need for relief, he said yesterday that he was sticking to his plan with the backing of the White House. Read more.
In related news, U.S. Treasury Secretary Steven Mnuchin said on Wednesday he backs another $20 billion in additional government payroll support for U.S. airlines, Reuters reported. “I think that would be very meaningful in terms of employment and saving the industry,” Mnuchin said at a House hearing. A bipartisan proposal released Tuesday called for $17 billion in payroll support for airlines to extend the program for four months. In October, American Airlines and United Airlines furloughed more than 32,000 workers after a prior $25 billion payroll assistance program expired. Airlines spent months seeking a new bailout and have won overwhelming support in the U.S. Congress, but lawmakers have been reluctant to support airlines, while other transportation modes like transit, buses, and rail railroad Amtrak are also seeking emergency aid. The Treasury separately offered $25 billion in loans to airlines; to date it has approved more than $21 billion in loans, including $7.5 billion for both American and United. Mnuchin also said that he backed aid for the struggling private motorcoach industry. The bipartisan proposal released on Tuesday would extend $8 billion to bus companies. Read more.
