Senate Democrats Sunday blocked a critical economic relief package worth more than $2 trillion, stalling plans to pass the bill by Monday and send it to the House.
Lawmakers and the Trump administration hoped to send a positive message to unstable stock markets and to those worried about the damage to the economy and job losses caused by the spread of the virus.
The measure includes sending direct cash payments that would average about $3,000 per family and expanding unemployment insurance, as well as $350 billion in aid to struggling small businesses. It also provides $500 billion in loans to industries hurt by the economic slowdown.
But Democrats are holding out for big changes to the bill, which they argue creates a “slush fund” for big industries and lacks sufficient protections for workers. They voted against a procedural step to start debate on the bill, which Senate Majority Leader Mitch McConnell hoped to pass by Monday.
McConnell, visibly angry on the Senate floor, entered a motion to reconsider the measure and said he’d bring it up again for a vote by Monday.
“We’ll have this … vote again at some point of my choosing, and hopefully, some adults will show up on the other side of the room and understand the gravity of the situation and the need to act before the markets go down further and the American people become even more depressed about our lack of ability to come together under the most extraordinary of circumstances,” he said.
The Senate bill is the product of a day of bipartisan talks and includes many of the provisions sought by Democrats.
House Speaker Nancy Pelosi, a California Democrat, said Democrats are now writing their own bill in the House. That measure is likely to include protections for workers, unemployment insurance expansion beyond what is in the Senate bill, and partial student loan forgiveness.
Democrats also seek additional “restraints” on how the Treasury can use liquidity to help industries hurt by the economic slowdown. On Fox News Sunday, Treasury Secretary Steven Mnuchin said the federal government would be able to leverage $4 trillion to help businesses for up to 120 days.
They also seek hundreds of billions of dollars in aid to states to help them deal with medical costs associated with the coronavirus. The Senate bill includes $110 billion, but Democrats say it’s not enough to address the shortages of protective gear and equipment for healthcare workers.
“It falls short of what medical providers need,” Sen. Joe Manchin, a key centrist Democrat from West Virginia, said ahead of the vote.
Senate Minority Leader Chuck Schumer, a New York Democrat, accused Republicans of drafting a partisan measure and said he is working with Treasury Secretary Steven Mnuchin to change the legislation and achieve a deal.
“We’re closer than we’ve ever been at any time over the past 48 hours to an agreement,” Schumer said. “But there are still too many problems in the proposed legislation. Can we overcome the remaining disagreements in the next 24 hours? Yes, we can. And we should. The nation demands it.”
