A bipartisan group of lawmakers is splitting its $908 billion coronavirus relief proposal into two packages as it prepares to release text today, The Hill reported. The plan will include a $160 billion proposal that ties together the two most controversial elements: more money for state and local governments and protections against coronavirus-related lawsuits. The second proposal will total $748 billion and include ideas that garner broader support, including another round of Paycheck Protection Program funding for small businesses, unemployment benefits, and more money for vaccine distribution, testing and schools. Members of GOP leadership, while saying the bipartisan group has been helpful at finding common ground, argue that a final agreement will need to be hashed out by Senate Majority Leader Mitch McConnell (R-Ky.) and House Speaker Nancy Pelosi (D-Calif.). Democrats view state and local money as a top priority, and the Senate GOP leader has long called including protections against coronavirus lawsuits a "red line." Read more.
In related news, ongoing revelations about how big businesses and chains were able to secure hundreds of millions of dollars in funding from the Paycheck Protection Program are shaping discussions in Congress about which employers should be eligible if another $300 billion is approved under another proposed stimulus package. Two leading senators on small-business issues, Marco Rubio (R-Fla.) and Ben Cardin (D-Md.), agree that a new round of funding should permit businesses to receive a second PPP payment. More funding would also likely require businesses to show that they’ve lost income due to the pandemic to receive loans, which turn into grants if used properly. Read more.
Additionally, House Majority Leader Steny Hoyer (D-Md.), indicated yesterday that Democratic House leadership was open to accepting a COVID-19 relief deal with Senate Majority Leader Mitch McConnell (R-Ky.) that doesn't include aid to state and local governments, The Hill reported. "I mean, I think we need to get an agreement, and we need to get this bill passed," Hoyer told CNN's Abby Phillip during an interview on "Inside Politics." He added, "If we can get [state and local assistance], we want to get it, but we want to get aid out to the people who are really, really struggling and are at great risk." Read more.
