Congress faces coronavirus, government funding battles as summer recess ends

By Patricia Zengerle and Richard Cowan

WASHINGTON (Reuters) – The U.S. Congress faces a tight deadline to avoid a government shutdown as lawmakers begin returning to Washington next week, complicated by bitter conflicts between Republicans and Democrats over the next package of coronavirus aid.

The Republican-led Senate is due back on Tuesday, while the Democratic-led House of Representatives plans to hold votes on bills starting the following week.

With congressional elections on Nov. 3, both chambers have very few days left to finish work as lawmakers plan to campaign in their home states for much of October.

The federal fiscal year ends on Sept. 30, so they will have to scurry to reach a deal on legislation funding government programs and averting a partial shutdown that could be especially damaging to lawmakers facing re-election in November.

On Thursday, White House Press Secretary Kayleigh McEnany expressed optimism that agreement will be reached in a timely way.

Congress is widely expected to pass a temporary measure mainly funding the government at current levels, leaving budget decisions for after Election Day.

But the issue is complicated by rancor over how best to address the coronavirus, especially amid the yawning federal budget deficit.

On Wednesday, the nonpartisan Congressional Budget Office said the fiscal 2020 deficit would hit $3.3 trillion, or 16% of gross domestic product, fueled by emergency pandemic aid already enacted into law.

More than $3 trillion in coronavirus relief was enacted earlier this year. But the Republican-led Senate left town last month without taking up another $3 trillion aid package the House passed in May or an alternative.

The two parties are sharply divided, but there are also disputes among Trump’s fellow Republicans. Many of the Senate’s 53 Republicans are on record opposing additional federal coronavirus relief, and most of the others want to pass a far smaller bill than the House’s.

One senior Senate Republican aide said disagreement among Republicans was so great that it was not clear whether a smaller, partisan bill could come up for a vote. Senate Democratic Leader Chuck Schumer has said he opposes a so-called “skinny” coronavirus bill and his party could block one from passing.

Alternatively, lawmakers could tuck coronavirus relief into the must-do government funding bill. Provisions could include extra unemployment benefits to replace the $600-per-week payments that expired in July, measures to prevent evictions or aid for schools or local governments.

But a spokesman for House Speaker Nancy Pelosi told Reuters that Democrats want a “clean” government-funding bill. That usually means a measure without controversial add-ons.

Republican President Donald Trump is running for re-election, and one- third of the 100-member Senate and all 435 House seats are up for grabs when voters head to the polls on Nov. 3.

A government shutdown just before the elections, as the coronavirus pandemic continues, could be particularly damaging to Republican prospects since they control the White House and Senate.

(Reporting by Patricia Zengerle and Richard Cowan; editing by Jonathan Oatis)

U.S. official sees ‘real desire’ for smaller coronavirus relief bill

ABOARD AIR FORCE ONE (Reuters) – Some Democrats and Republicans have a “real desire” to reach agreement on a smaller coronavirus relief bill that could be worth around $500 billion, a senior Trump administration official said late on Tuesday.

The official said the agreement could include funding for the U.S. Postal Service, additional funding for loans to small- and medium-sized businesses to keep workers on their payrolls and potentially added money for schools.

“I think there’s a real desire by some in the Democratic caucus and some in the Republican conference, both in the House and the Senate, to do a smaller deal on the things we can agree upon,” the official said. “It could be about $500 billion.”

That amount still falls far short of what Democrats have been seeking in protracted discussions with the administration.

U.S. House of Representatives Speaker Nancy Pelosi on Tuesday said Democrats in Congress are willing to cut their relief bill in half to get an agreement on new legislation.

“We have to try to come to that agreement now,” Pelosi said in an online interview with Politico. “We’re willing to cut our bill in half to meet the needs right now.”

The Democratic-led House passed legislation with over $3 trillion in relief in May. Democrats offered this month to reduce that sum by $1 trillion, but the White House rejected it.

The two sides remain about $2 trillion apart, with wide gaps on funding for schools, aid to state and local governments, and enhanced unemployment benefits.

The senior administration official said while a narrow agreement was possible on some issues, he did not see aid to state and local governments and a fresh round of stimulus checks as possible at the moment.

(Reporting by Andrea Shalal; Editing by Clarence Fernandez & Shri Navaratnam)

Pelosi: Democrats willing to cut COVID-19 bill in half to get a deal

WASHINGTON (Reuters) – U.S. House of Representatives Speaker Nancy Pelosi said on Tuesday that Democrats in Congress are willing to cut their coronavirus relief bill in half to get an agreement on new legislation with the White House and Republicans.

“We have to try to come to that agreement now,” Pelosi said in an online interview with Politico. “We’re willing to cut our bill in half to meet the needs right now. We’ll take it up again in January. We’ll see them again in January. But for now, we can cut the bill in half.”

But her remarks did not signal a new position for Democrats, according to a senior aide.

The Democratic-led House passed legislation with over $3 trillion in relief in May. This month, Democrats offered to reduce that sum by $1 trillion, but the White House rejected it.

The two sides remain about $2 trillion apart, with wide gaps on funding for schools, aid to state and local governments, and enhanced unemployment benefits.

(Reporting by David Morgan; Editing by Chris Reese and Chizu Nomiyama)

Congressional Democrats, White House set new round of coronavirus aid talks

By Patricia Zengerle

WASHINGTON (Reuters) – Top White House officials and Democratic leaders in the U.S. Congress will try again on Tuesday to narrow gaping differences over a fifth major coronavirus relief bill to help stimulate the economy and possibly provide new aid to the unemployed.

The two sides have reported some progress in recent days. But they remain far apart on a range of issues including unemployment benefits for workers made jobless by the epidemic, as well as liability protections for businesses and funding for schools, state and local governments and election security.

Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows were due to meet with Senate Republicans at a midday policy lunch, before resuming negotiations with House of Representatives Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer at 3:30 p.m. EDT (1930 GMT).

Federal Reserve officials are urging Congress and the White House to help the struggling U.S. economy. Tens of millions of Americans have lost their jobs during the crisis.

Congress passed more than $3 trillion in relief legislation early in the epidemic. But lawmakers missed a deadline last week to extend the $600 per week in enhanced unemployment payments that have played a key role in propping up the U.S. economy.

Democrats are pressing for another $3 trillion that would retain the $600 benefit and add nearly $1 trillion in assistance for state and local governments.

Senate Republicans, who have not taken part in the White House talks with Democrats, have proposed a $1 trillion package that would slash the unemployment payment to $200 a week and eventually move to 70% of wages.

Republicans say the $600 benefit – which is on top of state unemployment payments – discourages people from taking lower-paying jobs. A Fed official on Monday said there was little evidence to support that view.

Differences also remain on whether to extend a moratorium on housing evictions and Democrats’ demand for around $1 trillion in aid to state and local governments suffering revenue shortfalls as a result of the epidemic.

(Reporting by Patricia Zengerle; Writing by David Morgan and Richard Cowan; Editing by Scott Malone, Sam Holmes and Paul Simao)

Senate Republicans push back on McConnell’s $1 trillion U.S. coronavirus relief proposal

By David Morgan and Patricia Zengerle

WASHINGTON (Reuters) – Republicans in the U.S. Senate pushed back on Tuesday against their own party’s $1 trillion coronavirus relief proposal the day after it was unveiled by Majority Leader Mitch McConnell, sending some U.S. stocks downward.

McConnell and the chamber’s top Republicans unveiled the coronavirus aid package hammered out with the White House just four days before the expiration of expanded unemployment benefits keeping millions of Americans afloat during the crisis. The proposal would slash the federal benefit from $600 per week in addition to state unemployment, to $200.

Democrats have also rejected the package, calling it too small compared with their $3 trillion plan that passed the House of Representatives in May. Dissident Republicans criticized its expense.

McConnell touted the proposal as a “tailored and targeted” plan to reopen schools and businesses, while protecting companies from lawsuits.

Some U.S. stocks dropped as investors worried about the resurgence in coronavirus cases and awaited progress on the relief plan. [.N]

Republican Senator Lindsey Graham estimated that half the party’s members in the Senate would oppose the plan.

“I think if Mitch can get half the conference that’d be quite an accomplishment,” Graham told reporters. Graham said he considers this a war against the coronavirus. “You have to spend money when you’re in a war.”

Multiple Republican senators call the plan too costly.

“I’m not for borrowing another trillion dollars,” Republican Senator Rand Paul told reporters.

The Republican proposal would give many Americans direct payments of $1,200 each, provide billions in loans to small businesses, support hospitals and help schools reopen.

The federal supplemental unemployment benefit has been a financial lifeline for laid-off workers and a key support for consumer spending. Democrats quickly denounced the proposed cut as draconian when millions of Americans cannot return to shuttered workplaces.

PARTISAN DISPUTES

Many Republicans insist the unemployment payout encourages Americans to stay home rather than go back to work by paying them more than their previous wages. Their proposal would provide the $200 weekly payment in place until states create a system to provide a 70% wage replacement for laid-off workers.

Democrats said the $200 plan would damage the economy.

“People want to work, Republican friends. They just don’t have jobs to do it. We’re not going to let them starve while that happens,” Senate Democratic leader Chuck Schumer said.

Democrats also want money for state and local governments, which face multi-billion dollar budget shortfalls, with businesses closed and residents out of work.

“Our residents, our businesses, our families, they need direct federal support now,” said Savannah, Georgia, Mayor Van Johnson, one of a group of Democratic and Republican mayors on a conference call with reporters.

Bipartisan lawmakers questioned why funds for some programs that seemed to have nothing to do with the pandemic – such as $1.8 billion for a new Federal Bureau of Investigation headquarters – were in the proposal.

Schumer and Democratic House Speaker Nancy Pelosi were due to meet later on Tuesday with Treasury Secretary Steven Mnuchin, who had lunch with Republican senators.

The partisan wrangling comes as U.S. coronavirus cases have passed 4.3 million, with nearly 150,000 people killed in the country, and tens of millions out of work.

The Democratic-led House in May passed its $3 trillion coronavirus relief bill known as the “HEROES Act,” but the Republican-led Senate would not consider it.

McConnell acknowledged that the Republican “HEALS Act” was just a starting point for negotiations, and would need bipartisan support to become law.

“The HEALS Act is full of provisions that I would frankly dare my Democratic colleagues to actually say they oppose,” McConnell said.

(Reporting by David Morgan, Patricia Zengerle and Susan Cornwell in Washington; Additional reporting by Lisa Lambert in Washington; Writing by Patricia Zengerle; Editing by Scott Malone and Matthew Lewis)

Top House Republican threatens to cut funding to states, cities that don’t protect statues

WASHINGTON (Reuters) – The Republican leader in the U.S. House of Representatives introduced legislation on Thursday that would cut federal aid to state and local governments if they do not protect statues, after protesters attacked monuments to people who owned slaves or fought for the Confederacy.

“It is wrong to erase our history,” House Minority Leader Kevin McCarthy said in a statement, criticizing “left-wing mobs” who have attacked statues across the United States.

Under his bill, introduced with fellow Republican Representatives Jim Jordan and Sam Graves, some federal funds would be withheld if local governments do not “restore order or arrest rioters.”

During national – and international – protests against racial injustice sparked by the killing of George Floyd in Minneapolis in May some demonstrators have taken down or vandalized statues of historical figures such as Robert E. Lee, who led Confederate troops against the United States, and Christopher Columbus.

Republican President Donald Trump, who is campaigning for re-election in November, has harshly criticized such protesters, and criticized U.S. lawmakers who want to remove monuments to those who owned slaves and fought against U.S. forces in the 1860’s Civil War.

Trump has threatened decades-long prison terms for those who deface monuments or statues.

McCarthy introduced his bill as Democrats pushed legislation to remove monuments to slave owners and those who supported slavery from the U.S. Capitol in Washington.

On Thursday, Democratic House Speaker Nancy Pelosi said she expected the House would pass such legislation next week or the week after.

(Reporting by Patricia Zengerle; editing by Jonathan Oatis)

Daring Pelosi, Trump says he ‘looks forward’ to addressing Congress

FILE PHOTO: U.S. President Donald Trump delivers remarks on border security and the partial shutdown of the U.S. government from the Diplomatic Room at the White House in Washington, U.S., Jan. 19, 2019. REUTERS/Yuri Gripas/File Photo

WASHINGTON (Reuters) – President Donald Trump said on Wednesday he looks forward to delivering a State of the Union address before the U.S. Congress as scheduled on Jan. 29 in the chamber of the House of Representatives despite House Speaker Nancy Pelosi’s request that he delay it due to the government shutdown.

“It would be so very sad for our Country if the State of the Union were not delivered on time, on schedule, and very importantly, on location!” Trump wrote, according to a copy of the letter to Pelosi released by the White House.

Speaker of the House Nancy Pelosi (D-CA) speaks during a press briefing on the 27th day of a partial government shutdown on Capitol Hill in Washington, U.S., January 17, 2019. REUTERS/Joshua Roberts

Speaker of the House Nancy Pelosi (D-CA) speaks during a press briefing on the 27th day of a partial government shutdown on Capitol Hill in Washington, U.S., January 17, 2019. REUTERS/Joshua Roberts

Pelosi on Jan. 16 asked Trump to consider postponing the address, which is traditionally delivered in the House chamber, because part of the U.S. government is shut down. She had cited concerns about security for the event with some personnel furloughed during a month-long shutdown.

Trump, replying to Pelosi Wednesday, brushed aside the security concerns.

He said the Department of Homeland Security and the U.S. Secret Service had told him there would be “absolutely no problem” with the security for the speech, which is traditionally attended by both houses of Congress, most of the president’s Cabinet, the Joint Chiefs of Staff and justices of the Supreme Court.

office.

“Therefore, I will be honoring your invitation, and fulfilling my Constitutional duty, to deliver important information to the people and Congress of the United States of America regarding the State of our Union,” Trump wrote to Pelosi. “I look forward to seeing you on the evening of January 29th in the Chamber of the House of Representatives.”

There was no immediate reaction to the letter from Pelosi’s office.

Democratic U.S. Representative Jimmy Panetta, asked about Trump’s letter, told MSNBC: “This is just dialing up the rhetoric.”

Panetta said the final decision was up to Pelosi, saying “at this point, I don’t think it’s going to happen if we’re still shut down.”

(Reporting by Susan Heavey and Susan Cornwell; Editing by Kevin Drawbaugh and Jeffrey Benkoe)

Democrats to push shutdown halt that Trump unlikely to accept

U.S. President Donald Trump speaks in the Cabinet Room at the White House in Washington, U.S., January 2, 2019. REUTERS/Jim Young

By Ginger Gibson and Amanda Becker

WASHINGTON (Reuters) – In their first action in control of the U.S. House of Representatives, Democrats plan to adopt a bill on Thursday to end a federal shutdown without funding a Mexican border wall, trying to firmly fasten blame for the 13-day-old closure on President Donald Trump and his Republicans.

Passage of the bill by the new Democratic majority was expected to occur shortly after Nancy Pelosi is elected speaker of the House, returning the liberal from San Francisco to one of Washington’s most powerful posts for a second time.

But Senate Majority Leader Mitch McConnell said on Wednesday his chamber, still in Republican hands, would not vote on the legislation, calling it a “political sideshow” and “total nonstarter.”

“We’re asking the president to open up government,” Pelosi told reporters outside the White House on Wednesday after another unproductive meeting with Trump on the matter. “We have given the Republicans a chance to take yes for an answer.”

The Democrats’ shutdown-halting bill closely resembles one that won overwhelming bipartisan support in the Senate, which Democratic leaders say will put the onus on Republicans to accept it or clearly own the shutdown.

Trump’s demand for $5 billion in funding for a wall along the U.S.-Mexico border triggered the shutdown affecting about a quarter of the federal government and 800,000 federal workers.

McConnell said previously that Senate Republicans would not approve a spending measure Trump does not support. The Senate leader has been largely absent from discussions over the shutdown, deferring to the White House after Trump surprised him by rejecting his prior attempts to keep the government open without funding the wall.

The House proposal, which would fund most of the government through September and provide another month to negotiate wall funding, will more likely be a starting point for further negotiations in the new divided government.

Congressional leaders said they would return to the White House on Friday to resume talks with Trump, a sign that the government is likely to remain closed for the rest of the week.

Funding for about a quarter of the federal government expired on Dec. 22, closing “non-essential” operations at agencies such as the Department of Homeland Security, Energy and Commerce.

National parks have closed campgrounds for fear that toilets will overflow. Hundreds of thousands of federal employees are working without pay. The immigration courts, already overburdened, are largely shuttered.

While the first 12 days of the shutdown crept by quietly during the holiday season, Thursday will mark the changing of power in the House, in which the Democrats won a majority of seats in November’s elections, and a new dynamic, with Pelosi again central to moving any legislation through Congress.

(Reporting by Ginger Gibson and Amanda Becker; Editing by Kevin Drawbaugh and Peter Cooney)