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Senate's new virus relief bill: Here's what they're deciding on

The Senate is slowly hammering out a new coronavirus relief package, and has agreed on loans for hard-hit businesses and $1,200 individual relief checks. But weekly jobless benefits, rent aid, and funding for state and local governments remain sticking points.

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Susan Walsh/AP
House Speaker Nancy Pelosi of California (left) addresses the press with Senate Minority Leader Sen. Chuck Schumer of New York on Capitol Hill in Washington, Aug. 3, 2020. Both Republicans and Democrats says there is progress toward reaching an aid agreement.

Negotiators on a huge coronavirus relief bill reported slight progress after talks resumed Monday afternoon in the Capitol, with issues like food for the poor and aid to schools struggling to reopen safely assuming a higher profile in the talks.

Multiple obstacles remain, including an impasse so far on extending a $600-per-week pandemic jobless benefit, funding for the Postal Service, and aid to renters facing eviction. Democratic negotiators spoke of progress at almost the very moment that top Senate Republican Mitch McConnell was slamming them for taking a hard line in the talks.

鈥淲e are really getting an understanding of each side鈥檚 position. And we鈥檙e making some progress on certain issues moving closer together,鈥 said Senate Minority Leader Chuck Schumer, D-N.Y. 鈥淭here are a lot of issues that are still outstanding. But I think there is a desire to get something done as soon as we can.鈥

After the meeting, Ms. Pelosi told her Democratic colleagues on a call that she鈥檚 hopeful a deal could be reached this week, but doesn鈥檛 know if it鈥檚 possible, according to a Democratic aide who was granted anonymity to describe the private discussion.

Treasury Secretary Steven Mnuchin, a lead negotiator for President Donald Trump, said afterward that 鈥渨e continue to make a little bit of progress鈥 and that the administration is not insistent on a small-bore approach centered on extending the supplemental unemployment benefit and leaving other items for later. A GOP move to advance a slimmed-down relief package has been a recent point of conflict, with Democrats insisting there must be a comprehensive deal.

鈥淲e鈥檙e open to a bigger package if we can reach an agreement,鈥 Mr. Mnuchin said.

On the Senate floor, Mr. McConnell, R-Ky., re-upped his complaint that Democrats are taking too tough a line. Mr. McConnell is not a direct participant in the talks but is likely to be an important force in closing out any potential agreement.

鈥淭he Speaker of the House and the Democratic Leader are continuing to say 鈥榦ur way or the highway鈥 with a massive wish list for left-wing lobbyists that was slapped together a few weeks ago called a coronavirus bill,鈥 Mr. McConnell said.

Speaking to reporters after the two-hour session, Democratic negotiators pressed the case for additional food aid, funding for the Postal Service, and the $600-per-week jobless benefit that lapsed last week. The benefit has helped prop up the economy and family budgets as the coronavirus has wrought havoc.

The White House is seeking opportunities to boost Mr. Trump, like providing another round of $1,200 stimulus payments and extending the supplemental jobless benefit and partial eviction ban. Ms. Pelosi appears intent on an agreement as well, but she鈥檚 made it clear she needs big money for state and local governments, unemployment benefits, and food aid.

鈥淚t was productive, we鈥檙e moving down the track. We still have our differences, we are trying to have a clearer understanding of what the needs are, and the needs are that millions of children in our country are food insecure,鈥 Ms. Pelosi said. 鈥淢illions of people in our country are concerned about being evicted. Tens of millions of people are on unemployment insurance.鈥

Most members of the Democratic-controlled House have left Washington and won鈥檛 return until there is an agreement to vote on, but the GOP-held Senate is trapped in the capital.

鈥淚 can鈥檛 see how we can go home and tell people we鈥檝e failed, so I think that鈥檚 going to be a lot of pressure on everybody to come up with something,鈥 said Sen. John Cornyn, R-Texas. 鈥淚t really is a matter of will. It鈥檚 not a matter of substance at this point. This is just a painful period between people finally deciding OK, we want a deal, and then what that deal will ultimately look like.鈥

Areas of agreement already include the $1,200 direct payment and changes to the Paycheck Protection Program to permit especially hard-hit businesses to obtain another loan under generous forgiveness terms.

But the terms and structure of the unemployment benefit have remained a sticking point, along with the money for state and local governments. Democrats want almost $1 trillion for localities grappling with pandemic-related revenue losses.

Speaking to reporters Monday evening, Mr. Trump made clear the two sides were still far apart on that issue.

鈥淭hey want to bail out cities and states that have been in trouble for years of bad management,鈥 Mr. Trump said. 鈥淚n all cases Democrat-run cities, and we don鈥檛 think that鈥檚 fair.鈥

Mr. McConnell is insistent on a liability shield against lawsuits by workers, students, and others against institutions seeking to remain open during the pandemic, including businesses, universities, and charities.

On Monday, unions representing professional athletes 鈥 including NFL players and Major League Baseball players 鈥 weighed in against Mr. McConnell鈥檚 proposal, saying in a letter to lawmakers, 鈥淚t makes little sense during these uncertain times to both ask employees to return to work and, at the same time, accept all the risk for doing so.鈥

On unemployment, Ms. Pelosi said she鈥檇 consider reducing the $600 benefit for people in states with lower unemployment rates.

Republicans want to cut the benefit to encourage beneficiaries to return to work and say it is bad policy since it pays many jobless people more money than they made at their previous jobs.

Another sticking point is that Republicans want to give more school aid to systems that are restarting with in-school learning, even as Dr. Deborah Birx, Mr. Trump鈥檚 top coronavirus adviser, cautioned that schools in areas with spikes in cases should delay reopening.

Ms. Pelosi said Monday鈥檚 talks featured extensive discussion on reopening schools. Mr. Schumer said the discussion got into the details on the dollar figures involving school aid and food aid.

The House passed a $3.5 trillion measure in May, but Republicans controlling the Senate have demanded a slower approach, saying it was necessary to take a 鈥減ause鈥 before passing additional legislation. Since they announced that strategy, however, coronavirus caseloads have spiked and the economy has absorbed an enormous blow.

This story was reported by The Associated Press. AP writer Mary Clare Jalonick contributed to this report.

Editor鈥檚 note: As a public service, the Monitor has removed the paywallfor all our coronavirus coverage. It鈥檚 free.

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