White House pushes for limited relief bill as broader effort meets resistance

Published October 12, 2020
US Treasury Secretary Steve Mnuchin takes questions from news reporters with White House Chief of Staff Mark Meadows following a series of meetings on efforts to pass new coronavirus aid legislation on Capitol Hill in Washington on July 28. — Reuters/File
US Treasury Secretary Steve Mnuchin takes questions from news reporters with White House Chief of Staff Mark Meadows following a series of meetings on efforts to pass new coronavirus aid legislation on Capitol Hill in Washington on July 28. — Reuters/File

WASHINGTON: The Trump administration on Sunday called on Congress to pass a stripped-down coronavirus relief bill using leftover funds from an expired small business loan programme as negotiations on a broader package ran into resistance.

The proposal was the latest twist in the on-again, off-again talks to try to secure more stimulus for the economy, which is struggling to recover from coronavirus-related shutdowns that threw millions of Americans out of work.

In a letter to lawmakers, Treasury Secretary Steve Mnuchin and White House Chief of State Mark Meadows said they would continue to talk to Senate Democratic leader Chuck Schumer and House Speaker Nancy Pelosi to try to reach agreement on a comprehensive bill.

However, they said Congress should “immediately vote” on legislation to enable the use of the unused Paycheck Protection Program funds, which total around $135 billion.

“The all or nothing approach is an unacceptable response to the American people,” they wrote.

A spokesman for Pelosi, the lead negotiator for Democrats, did not immediately respond to a request for comment.

President Donald Trump offered a $1.8 trillion coronavirus relief package in talks with Pelosi after urging his team on Twitter to “go big” — moving closer to Pelosi’s $2.2 trillion proposal. That came after Trump earlier last week said he was calling off negotiations until after the Nov. 3 election.

Trump’s reversal and higher offer drew criticism from several Senate Republicans, many of whom are uneasy about the nation’s growing debt and concerned a deal would cost Republicans support in the upcoming election.

Federal Reserve officials have urged Congress to be aggressive in supporting the US economy. The head of the Minneapolis Federal Reserve Bank on Sunday said the recovery had “flattened out” indicating the need for further stimulus.

“A lot of people are suffering. A lot of small businesses are suffering,” Minneapolis Fed chief Neel Kashkari said on CBS’ “Face the Nation”.

“We need Congress to continue to be aggressive so that the recovery can be stronger.”

White House economic adviser Larry Kudlow said on CNN’s “State of the Union” that he thought Senate Republicans would eventually come around.

“I think if an agreement can be reached, they will go along with it,” he said, adding that there will be “further efforts of negotiation” on a package this week.

Published in Dawn, October 12th, 2020

Opinion

Editorial

Narcotic darkness
08 May, 2024

Narcotic darkness

WE have plenty of smoke with fire. Citizens, particularly parents, caught in Pakistan’s grave drug problem are on...
Saudi delegation
08 May, 2024

Saudi delegation

PLANS to bring Saudi investment to Pakistan have clearly been put on the fast track. Over the past month, Prime...
Reserved seats
Updated 08 May, 2024

Reserved seats

The truth is that the entire process — from polls, announcement of results, formation of assemblies and elections to the Senate — has been mishandled.
Impending slaughter
Updated 07 May, 2024

Impending slaughter

Seven months into the slaughter, there are no signs of hope.
Wheat investigation
07 May, 2024

Wheat investigation

THE Shehbaz Sharif government is in a sort of Catch-22 situation regarding the alleged wheat import scandal. It is...
Naila’s feat
07 May, 2024

Naila’s feat

IN an inspirational message from the base camp of Nepal’s Mount Makalu, Pakistani mountaineer Naila Kiani stressed...