McConnell shoots down bipartisan $900 billion coronavirus stimulus plan as stalemate
Tags: Marketing, Wdm, Eos

Senate Majority Leader Mitch McConnell rejected a proposed bipartisan coronavirus stimulus package Tuesday amid months of congressional inaction on curbing the economic damage from the outbreak.

The Kentucky Republican, who has supported about $500 billion in new aid spending, said he wants to pass what he called a “targeted relief bill” this year. McConnell said he spoke to White House officials about what President Donald Trump would sign into law. He plans to offer potential solutions to GOP senators and get their feedback.

“We just don’t have time to waste time,” he told reporters in response to the roughly $908 billion plan put together by bipartisan members of the GOP-controlled Senate and Democratic-held House.

McConnell said a must-pass spending bill and pandemic relief provisions will “all likely come in one package.” Congress needs to approve funding legislation by Dec. 11 to avoid a government shutdown.

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VIDEO02:32

Lawmakers unveil bipartisan $900 billion coronavirus stimulus package

The framework of the bipartisan relief bill released Tuesday includes $288 billion in small business aid such as Paycheck Protection Program loans, $160 billion in state and local government relief, and $180 billion to fund a $300 per week supplemental unemployment benefit through March. It would put $16 billion into vaccine distribution, testing and contact tracing, funnel $82 billion into education, and put $45 billion into transportation. It would allocate funds for rental assistance, child care and broadband.

The proposal would not include another direct payment to most Americans. It also would offer temporary federal protection from coronavirus-related lawsuits — a provision Democrats have opposed — while states determine their own laws.

Democratic Sen. Mark Warner of Virginia, a member of the congressional group that has discussed a new relief plan, earlier called it an “interim package” to provide support until President-elect Joe Biden takes office in January.

“If there’s one thing I’m hearing uniformly it’s: ‘Congress, do not leave town for the holidays leaving the country and the economy adrift with all these initial CARES [Act] programs running out,’” Warner told CNBC’s “Squawk Box” on Tuesday.

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VIDEO04:18

Where the money comes from for your stimulus check

It is unclear whether lawmakers can craft a plan that can get through both chambers of Congress before the end of the year, when many programs expire. Democrats have opposed liability protections and pushed for a $600 per week supplemental jobless benefit, while the GOP is against new state and local aid.

Sen. Joe Manchin, D-W.Va., who worked on the proposal, said the group had no assurances from House Speaker Nancy Pelosi, D-Calif., or Senate Majority Leader Mitch McConnell, R-Ky., that they would vote on the plan.

U.S. Senate Majority Leader Mitch McMcConnell (R-KY) speaks to reporters as Senate Republican leaders hold a news conference on Capitol Hill in Washington, December 1, 2020.

Kevin Lamarque | Pool | Reuters