GOP Senate leader Mitch McConnell now says he’ll back any relief bill that Democrats and White House negotiators come up with, CNBC reported on Tuesday, Aug. 4, 2020.
That’s significant because it removes a potential major obstacle to passing a bill.
GOP senators are divided and it appears there’s no set of proposals the Senate could pass with Republican votes alone. McConnell will need a bipartisan coalition for anything to happen, and his statement reflects that reality.
It’s not politically feasible for either party to give in to impasse. There’s desperate need out in the country. They have to do something.
The sides appear to have agreed on another round of $1,200 payments to individuals and continuing to fund the Paycheck Protection Program (PPP), which offers small businesses forgivable loans to keep paying their furloughed employees. But Democrats aren’t budging on Republican demands to scale back unemployment benefits or aid to state and local governments.
CNBC reports that “Trump indicated he might support extending the $600 per week benefit,” which could lead to a breakthrough on that issue. Democrats want to continue those benefits for the rest of this year. Negotiators conceivably might compromise on a shorter period.
Republicans support saving small businesses, and have proposed additional measures in separate legislation.
Trump opposes helping state and local governments, whom he accuses of fiscal irresponsibility, possibly because “blue” states would be major beneficiaries, but not including it is a deal breaker for Democrats. Most states and cities have suffered major revenue losses as a result of mass unemployment and plunging consumer spending, while having to shoulder some of the costs of fighting Covid-19.
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