Bipartisan U.S. talks expected on rescue for coronavirus-hit economy
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[March 20, 2020]
By David Morgan and Richard Cowan
WASHINGTON (Reuters) - U.S. senators from
both parties were expected to meet on Friday along with Trump
administration officials to try to devise a rescue plan for an economy
reeling from the coronavirus, after Republicans made a $1 trillion
The massive Republican package unveiled on Thursday includes checks of
up to $1,200 for many Americans, and hundreds of billions of dollars in
loans for small businesses and industries. It also would allow Americans
a breather on filing their income taxes until July. They are normally
due in April.
Senate Majority Leader Mitch McConnell introduced the package after
talks with the White House and his fellow Republicans. He then invited
Democrats to join them in negotiations on Friday, along with Treasury
Secretary Steven Mnuchin and White House economic adviser Larry Kudlow.
McConnell vowed the Senate would not adjourn until it had taken action
and sent a measure to the Democratic-led House of Representatives, but
any vote was probably days away.
Democrats said they were ready to talk, but were also wary, noting they
had not been involved in drafting the plan.
"To earn Democratic support in the Congress, any economic stimulus
proposal must include new, strong and strict provisions that prioritize
and protect workers, such as banning the recipient companies from buying
back stock, rewarding executives and laying off workers," Senate
Democratic leader Chuck Schumer said in a joint statement with his
fellow Democrat, House Speaker Nancy Pelosi.
Senator Patrick Leahy, the top Democrat on the chamber's Appropriations
Committee, issued a harsh statement on Thursday evening, calling the
Republican plan a non-starter. "The McConnell/Trump Republican proposal
puts the interests of corporations over workers and American families,"
"This proposal contains no funding for first responders, child care,
schools, help for the homeless, or veterans medical care, to name a
few," Leahy said.
THIRD RELIEF MEASURE
The package is the third taken up by Congress since the coronavirus
erupted in the United States. The highly contagious respiratory disease
had infected 12,259 people in the country and killed 200 as of Thursday
night. It has shut schools, businesses and wide swaths of American life,
and sent the stock market into a tailspin.
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Senator John Barrasso (R-WY) walks down a hallway ahead of a Senate
luncheon meeting on response to the coronavirus disease (COVID-19)
outbreak in Washington, U.S., March 19, 2020. REUTERS/Tom Brenner
Congress passed an $8.3 billion measure earlier this month to combat
the coronavirus outbreak and develop vaccines.
On Wednesday, lawmakers approved and Trump signed a $105
billion-plus plan to limit the damage through free testing, paid
sick leave and expanded safety-net spending.
A key plank in the latest measure is direct payments of up to $1,200
for individuals earning up to $75,000 annually, a Senate Finance
Committee statement said. Students would be allowed to defer
payments on student loans.
The bill also includes $300 billion for small businesses, and $208
billion in loans for distressed industries, including $50 billion
for passenger airlines and $8 billion for cargo air carriers.
"We are not bailing out the airlines or other industries - period,"
Senate Appropriations Committee Chairman Richard Shelby, a
Republican, told reporters. Instead the government would guarantee
collateralized loans to industries hurt by the outbreak, he said.
But Shelby and some other Republicans were not fans of the proposal
to send direct payments to individuals.
Leaders in the House were trying to work out new voting procedures
that would allow them to reconvene without endangering members after
two members tested positive for the virus and a number of others
decided to self-quarantine.
(Reporting by David Morgan, Richard Cowan, Susan Cornwell, Patricia
Zengerle, Lisa Lambert and Mohammed Zargahm; Writing by Susan
Cornwell; Editing by Peter Cooney)
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