Stimulus update: White House reaches out to Pelosi to restart negotiations on checks and unemployment benefits
Democratic and Republican leaders haven’t met to discuss a broad stimulus bill since August 7 when talks ended in a bitter stalemate. The next day, President Donald Trump bypassed Congress and signed executive orders and memorandums encompassing everything from enhanced unemployment benefits to extending students loan deferments, but also effectively killing stimulus negotiations.
But on Wednesday the White House chief of staff Mark Meadows told Politico his staff reached out to House Speaker Nancy Pelosi on Tuesday to restart negations on a broad stimulus bill. That plea to restart talks comes as economists worry the expired $600 enhanced unemployment benefits—which Trump temporarily replaced with $300 enhanced benefits—could pull the economy back into contraction.
“We haven’t anything from her, and I don’t anticipate we’ll actually get a phone call,” Meadows told Politico. He doubts Pelosi will restart talks until later in September when the next spending bill rolls around.
When negotiations fell apart earlier this month Democratic leaders were still asking for $3.4 trillion in stimulus, while the White House wouldn’t budge from its offer of around $1 trillion. Democratic leaders proposed coming down $1 trillion if Republicans came up $1 trillion, however, that offer was rebuffed.
Some have speculated that yesterday’s announcement from American Airlines that it would furlough 19,000 workers in October unless further stimulus was passed, may put pressure on the sides to restart talks.
Both parties agree on including items like another round of $1,200 stimulus checks and enhanced unemployment benefits—although the amount is a point of tension. Meanwhile, the parties are in disagreement on items including a steep increase in federal aid to state and local governments, which Democrats support, and COVID-19 lawsuit immunity for businesses, which Republicans support.
Both the House and Senate are still on recess, however, party leaders have said they’d call lawmakers back to vote if a deal is reached.
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