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The Trump administration’s $1.8 trillion stimulus offer is undergoing significant backlash from both Democrats and Senate Republicans, dampening the odds of a government rescue package to keep individuals and businesses afloat ahead of the election.
In a letter to her caucus on Saturday, Speaker Nancy Pelosi called the plan “insufficient” and said it amounted to “one step forward, two steps back. She listed significant concerns with the White House’s proposal, including on state and local aid, unemployment benefits, and child care.
“When the President talks about wanting a bigger relief package, his proposal appears to mean that he wants more money at his discretion to grant or withhold,” Pelosi wrote in the letter, adding she remained “hopeful” for a final deal.
Pelosi said Democrats will continue pushing for more funding and details from the administration. Negotiations are continuing this weekend.
Senate Republicans assailed the offer in a conference call with Treasury Secretary Steven Mnuchin and White House chief of staff Mark Meadows on Saturday morning for both its spending levels and certain measures, per sources briefed on the call, Politico reported.
Sen. Lamar Alexander of Tennessee said “there’s no appetite right now to spend the White House number or the House number.”
Then Sen. John Barrasso of Wyoming warned that backing relief legislation widening the reach of the Affordable Care Act will be viewed as “an enormous betrayal by our supporters.” Republicans are concerned that the administration’s plan expands ACA tax credits that could lead to taxpayer funding of abortions.
“I don’t get it,” said Sen. Rick Scott of Florida, who has long been critical of additional federal funding for state and local governments grappling with large budget shortfalls.
The White House did not immediately respond to a request for comment.
The fierce criticism from Republicans and Democrats comes after the Trump administration increased its stimulus offer to $1.8 trillion, the largest one yet in a volatile stretch of talks with Democrats. President Donald Trump is renewing efforts to secure a deal on coronavirus relief only days after abruptly cutting off talks.
The White House plan contains $1,200 direct payments, $400 weekly federal unemployment benefits, aid to state and local governments, and funds for virus testing and tracing.
The attacks underscore the significant obstacles facing a possible deal brokered between Pelosi and Mnuchin in on-again, off-again negotiations — particularly in gaining support from Senate Republicans.
“The overall price tag matters a lot to conservatives. But just as important is the contents of the spending,” Steve Moore, an outside economic advisor to the White House, told Business Insider. “The contents make all the difference in the world.”
Some Republican senators are critical of supporting relief spending that grows the national debt.
The prospects of an economic aid package that provides relief ahead of the election are diminishing, given the wide rifts between both parties on numerous measures like state aid and unemployment benefits. Senate Majority Leader Mitch McConnell was cool to the odds of additional federal aid, saying on Thursday it was unlikely before Election Day.
Republicans are gearing …read more
Source:: Business Insider