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House Races to Pass Coronavirus Relief After Democrats Strike Deal With White House House Races to Pass Coronavirus Relief After Democrats Strike Deal With White House
(about 2 hours later)
WASHINGTON — President Trump on Friday declared a national emergency to respond to the coronavirus pandemic and announced new steps he said would speed the availability of testing for the virus, as his administration reached a deal with congressional Democrats to provide tens of billions of dollars for sick pay for affected workers and begin to prop up a slumping economy.WASHINGTON — President Trump on Friday declared a national emergency to respond to the coronavirus pandemic and announced new steps he said would speed the availability of testing for the virus, as his administration reached a deal with congressional Democrats to provide tens of billions of dollars for sick pay for affected workers and begin to prop up a slumping economy.
Markets rallied on Mr. Trump’s emergency declaration, which he said would free up $50 billion for states and localities to cope with the outbreak — separate from the congressional relief measure — and which would allow the Treasury Department to delay tax filing deadlines for some individuals and businesses. During an announcement in the Rose Garden, the president also said he would suspend collections of interest on federal student loans indefinitely and instruct the Energy Department to buy enough oil to fill the nation’s Strategic Petroleum Reserve “to the top.” Markets rallied on Mr. Trump’s emergency declaration, which he said would free up $50 billion for states and localities to cope with the outbreak — separate from the congressional relief measure — and which would allow the Treasury Department to delay tax filing deadlines for some individuals and businesses. During a news conference in the Rose Garden, the president also said he would suspend collections of interest on federal student loans indefinitely and instruct the Energy Department to buy enough oil to fill the nation’s Strategic Petroleum Reserve “to the top.”
The S&P 500 soared during the remarks and closed the day up by more than 9 percent.The S&P 500 soared during the remarks and closed the day up by more than 9 percent.
The president announced a new initiative that he said would speed the ability of Americans to be tested for the virus. It includes new private partnerships to speed tests to the market and a website designed by Google, where Mr. Trump said potential patients could enter their symptoms and be directed to a nearby, drive-through testing center. Mr. Trump said the site would be available starting on Sunday. Later on Friday, Google said on Twitter that the initiative was in its “early stages” and would first be introduced as a prototype in the Bay Area. At the news conference where he announced the new initiatives, Mr. Trump followed none of the safety protocols recommended to combat the spread of the virus, shaking hands with multiple administration officials and chief executives and sharing a microphone with them.
A roller-coaster day of negotiations over a sweeping coronavirus relief package also threatened to veer off track during Mr. Trump’s news conference as the president criticized the plan, telling reporters of Democrats, “We don’t think they’re giving enough.” He said his plan would speed the ability of Americans to be tested for the virus. It includes private partnerships to speed tests to the market and a website designed by Google, where Mr. Trump said potential patients could enter their symptoms and be directed to a nearby, drive-through testing center. Mr. Trump said the site would be available starting on Sunday, with the goal of allowing all Americans who needed one to get a test “very safely, quickly and conveniently.”
He gave little indication of what his specific objections were. Still, by dusk, Speaker Nancy Pelosi of California wrote to House Democrats saying, “We are proud to have reached an agreement with the administration to resolve outstanding challenges.” Not long after, even as congressional and administration aides negotiated the final legislative language of the compromise, Steven Mnuchin, the Treasury secretary, confirmed it would move forward. But later on Friday, Google appeared to cast doubt on when or even whether that would be possible, writing on Twitter that the initiative was in its “early stages” and would first be introduced as a prototype in the Bay Area. And the president, who has previously claimed that anyone who wanted a test could get one, deflected any blame for the testing delays that have hampered the government’s response to the pandemic.
“We have an agreement that reflects what the president talked about in his speech the other night,” Mr. Mnuchin said on Fox News. He said Mr. Trump was focused on making sure “hard-working Americans don’t lose their compensation because they have to be home.” “I don’t take responsibility at all,” Mr. Trump said. He brushed off questions about his own exposure to a Brazilian official who visited him last weekend at his Mar-a-Lago resort in Florida and has since tested positive for the virus, saying he had no symptoms and did not need to be tested. But repeatedly pressed on the matter, Mr. Trump eventually said he was likely to be screened.
“Fairly soon,” he said. “We’re working out a schedule.”
On Capitol Hill, the agreed-upon relief deal, which does not yet have a price tag, would guarantee 14 days of full paid sick leave and up to three months of family and medical leave for those affected by the crisis. It provides tax credits to help small- and medium-size businesses finance the new benefit. It does not include direct cash assistance to families — or Mr. Trump’s desired payroll tax suspension through the end of the year, which could cost more than $800 billion and which would not give any help to workers who lose their jobs and stop drawing salaries in the outbreak.
The announcements came as the ripple effects of the pandemic spread further on Friday, drastically slowing critical sectors of the American economy and daily life.The announcements came as the ripple effects of the pandemic spread further on Friday, drastically slowing critical sectors of the American economy and daily life.
Schools across the country, including in Los Angeles, the nation’s second-largest public school district, as well as the entire state of Virginia, shut down. The airline Delta announced it would park 300 aircraft and reduce capacity by 40 percent, the sharpest cutback in its history. Grocery store shelves were picked clean, and restaurants and retail stores braced for fall-offs in customer traffic as more Americans began to follow “social distancing” orders to avoid crowds and possible virus transmission.Schools across the country, including in Los Angeles, the nation’s second-largest public school district, as well as the entire state of Virginia, shut down. The airline Delta announced it would park 300 aircraft and reduce capacity by 40 percent, the sharpest cutback in its history. Grocery store shelves were picked clean, and restaurants and retail stores braced for fall-offs in customer traffic as more Americans began to follow “social distancing” orders to avoid crowds and possible virus transmission.
As Congress and the administration struggled to hammer out what all sides agreed was only an incremental step — and not a full stimulus package — to combat the virus, European officials announced a series of aggressive measures to support their economies and try to contain the virus’s spread.
The World Health Organization declared Europe the center of the pandemic. European Union officials announced they would allow member nations to run larger than normal budget deficits to stimulate economic growth during the outbreak. France and Germany announced stimulus plans, a particularly stunning move for the deficit-averse Germans, and Italy was expected to follow suit.
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As Congress and the administration struggled to come to terms on what all sides agreed was only an incremental step — and not a full stimulus package — to combat the virus, European officials announced a series of aggressive measures to support their economies and try to contain the virus’s spread.
The World Health Organization declared Europe the center of the pandemic. European Union officials announced they would allow member nations to run larger than normal budget deficits to stimulate economic growth during the outbreak. France and Germany announced stimulus plans, a particularly stunning move for the deficit-averse Germans, and Italy was expected to follow suit.
In the United States, Mr. Trump’s moves and the possibility of Congress sending a compromise bill to the president’s desk next week brought progress in the effort to slow the spread of the virus and minimize its growing damage to the economy.In the United States, Mr. Trump’s moves and the possibility of Congress sending a compromise bill to the president’s desk next week brought progress in the effort to slow the spread of the virus and minimize its growing damage to the economy.
But they still fell far short of the steps that a growing chorus of economists say lawmakers must take to confront a crisis with little precedent in American history — one that is likely to require Mr. Trump to transcend his preferred brand of wrestling-ring politics to marshal a rapid, bipartisan response.But they still fell far short of the steps that a growing chorus of economists say lawmakers must take to confront a crisis with little precedent in American history — one that is likely to require Mr. Trump to transcend his preferred brand of wrestling-ring politics to marshal a rapid, bipartisan response.
Shortly after stock trading closed for the day, the president followed his emergency declaration by introducing new uncertainty about the scope and speed of the government’s fiscal response. Shortly after stock trading closed for the day, the president cast doubt on the aid package that had been negotiated painstakingly by Speaker Nancy Pelosi and Steven Mnuchin, the Treasury secretary.
“We don’t think the Democrats are giving enough” in negotiations, he said, on an emerging compromise to provide paid leave, safety net benefits and other measures meant to help consumers and businesses weather the sharp slowdown in economic activity that is threatening to grip the country. “We don’t think the Democrats are giving enough” in negotiations, he said.
After Mr. Trump’s remarks, a senior administration official said that the president was referring to his interest in securing a nearly $1 trillion temporary cut in payroll taxes, an idea that lawmakers from both parties have viewed with skepticism.After Mr. Trump’s remarks, a senior administration official said that the president was referring to his interest in securing a nearly $1 trillion temporary cut in payroll taxes, an idea that lawmakers from both parties have viewed with skepticism.
Still, talks continued as the afternoon progressed: At the moment Mr. Trump criticized Democrats, Ms. Pelosi and Mr. Mnuchin were speaking for the 10th time of the day about the legislation. Ms. Pelosi announced the deal after the pair concluded their 13th phone call, on Friday the 13th, and shortly after Mr. Mnuchin met privately with the president to urge him to accept it. Still, talks continued as the afternoon progressed. At the moment Mr. Trump was criticizing Democrats in the Rose Garden, Ms. Pelosi and Mr. Mnuchin were speaking for the 10th time of the day about the legislation. Ms. Pelosi announced the deal after the pair concluded their 13th phone call, on Friday the 13th, and shortly after Mr. Mnuchin met privately with the president to urge him to accept it.
The House was planning to vote Friday evening on the proposal, which includes a sweeping new provision for paid sick leave, enhanced unemployment benefits, free virus testing and additional funds for food assistance and Medicaid. The Senate, which left Washington for the weekend on Thursday, is expected to take up the measure and pass it early next week. In the hours after that, the deal seemed in peril as White House officials insisted they were still reviewing text and aides rushed to make technical changes.
“Look forward to signing the final Bill, ASAP!” Mr. Trump tweeted near 9 p.m., giving the first indication that he backed the measure and wanted Republicans to vote for it.
The House was planning to vote late Friday night on the proposal, which also includes enhanced unemployment benefits, free virus testing and additional funds for food assistance and Medicaid. The Senate, which left Washington for the weekend on Thursday, is expected to take up the measure when it returns next week.
Any delay could further imperil an economy that many forecasters are persuaded is entering a recession, caused by the damage the virus has already inflicted on global supply chains and the growing chill from homebound consumers pulling back on their spending.Any delay could further imperil an economy that many forecasters are persuaded is entering a recession, caused by the damage the virus has already inflicted on global supply chains and the growing chill from homebound consumers pulling back on their spending.
Some economists say that to contain the spread of the virus, the country must effectively hit pause on entire sectors of commerce, like entertainment and dining, that bring Americans together in large crowds. Those economists say Congress and Mr. Trump must help workers and small-business owners weather that shock — and give them enough cash to help kick-start spending and hiring again once the virus is contained and daily routines begin to return to normal.Some economists say that to contain the spread of the virus, the country must effectively hit pause on entire sectors of commerce, like entertainment and dining, that bring Americans together in large crowds. Those economists say Congress and Mr. Trump must help workers and small-business owners weather that shock — and give them enough cash to help kick-start spending and hiring again once the virus is contained and daily routines begin to return to normal.
“The approach has to be, let’s make this as short and sharp as we can,” said Steven Hamilton, an economist at George Washington University who has recently called for policymakers to rethink traditional government stimulus efforts that focus largely on tax cuts or spending programs, and instead supply hundreds of billions of dollars in direct assistance to workers and small business owners.“The approach has to be, let’s make this as short and sharp as we can,” said Steven Hamilton, an economist at George Washington University who has recently called for policymakers to rethink traditional government stimulus efforts that focus largely on tax cuts or spending programs, and instead supply hundreds of billions of dollars in direct assistance to workers and small business owners.
“It’s the worst public health crisis in a century,” Mr. Hamilton said. “The world has never faced anything like this. The United States economy is going to need to shut — I mean, shut everything — for two to six weeks.”“It’s the worst public health crisis in a century,” Mr. Hamilton said. “The world has never faced anything like this. The United States economy is going to need to shut — I mean, shut everything — for two to six weeks.”
That sort of abrupt halt in activity will particularly hurt small-business owners who lack the cash reserves or access to credit that larger companies enjoy. It will also slam lower-income workers, many of whom do not have paid leave, or work in industries like hospitality that are suffering acutely from the pandemic, or both.That sort of abrupt halt in activity will particularly hurt small-business owners who lack the cash reserves or access to credit that larger companies enjoy. It will also slam lower-income workers, many of whom do not have paid leave, or work in industries like hospitality that are suffering acutely from the pandemic, or both.
By limiting the number of people gathering in common spaces, traveling by public transit systems, and coming into direct contact with one another, it may be possible to substantially slow the spread of the virus, experts say.By limiting the number of people gathering in common spaces, traveling by public transit systems, and coming into direct contact with one another, it may be possible to substantially slow the spread of the virus, experts say.
Studies of cities and states that have required employers to offer paid sick leave show substantially lower rates of influenza during flu season, a sign that the provision does reduce the spread of illness. Many economists, including conservatives and liberals, applauded the inclusion of a paid leave provision in the House bill.Studies of cities and states that have required employers to offer paid sick leave show substantially lower rates of influenza during flu season, a sign that the provision does reduce the spread of illness. Many economists, including conservatives and liberals, applauded the inclusion of a paid leave provision in the House bill.
“Good economic policy starts by ensuring that the humans in the economy stay well — and alive — so they can participate in the economy as both producers and consumers,” said Heather Boushey, the president of the Washington Center for Equitable Growth, a liberal think tank focused on inequality and growth. “We need to focus on this basic first principle right now.”“Good economic policy starts by ensuring that the humans in the economy stay well — and alive — so they can participate in the economy as both producers and consumers,” said Heather Boushey, the president of the Washington Center for Equitable Growth, a liberal think tank focused on inequality and growth. “We need to focus on this basic first principle right now.”
The shape of the paid leave benefit — and how many workers could have access to it — proved to be a sticking point in negotiations on Friday between Ms. Pelosi and Mr. Mnuchin. Democrats agreed to drop a provision that would have created a permanent paid sick leave entitlement in case of a public health emergency. Republicans sought to confine it only to people who were sick or caring for ill family or children kept out of school.The shape of the paid leave benefit — and how many workers could have access to it — proved to be a sticking point in negotiations on Friday between Ms. Pelosi and Mr. Mnuchin. Democrats agreed to drop a provision that would have created a permanent paid sick leave entitlement in case of a public health emergency. Republicans sought to confine it only to people who were sick or caring for ill family or children kept out of school.
The agreed-upon deal would guarantee 14 days of full paid sick leave and up to three months of family and medical leave for those affected by the crisis. It provides tax credits to help small- and medium-size businesses finance the new benefit. It does not include direct cash assistance to families — or Mr. Trump’s desired payroll tax suspension through the end of the year, which could cost more than $800 billion and which would not give any help to workers who lose their jobs and stop drawing salaries in the outbreak.
Ms. Pelosi on Friday evening characterized the bill as an intermediate step.Ms. Pelosi on Friday evening characterized the bill as an intermediate step.
“As the Senate works to pass this bill,” she wrote in a letter to colleagues, “the House will begin work on a third emergency response package to protect the health, economic security and well-being of the American people.”“As the Senate works to pass this bill,” she wrote in a letter to colleagues, “the House will begin work on a third emergency response package to protect the health, economic security and well-being of the American people.”
Last week, Mr. Trump signed the first emergency coronavirus response measure, a bill to provide $8.3 billion to the federal health agencies dealing with the crisis.Last week, Mr. Trump signed the first emergency coronavirus response measure, a bill to provide $8.3 billion to the federal health agencies dealing with the crisis.
Mr. Trump sent mixed messages in his news conference about the size of the economic impact he was expecting, and about the steps Americans should take to avoid contracting or transmitting the virus.Mr. Trump sent mixed messages in his news conference about the size of the economic impact he was expecting, and about the steps Americans should take to avoid contracting or transmitting the virus.
He called upon Americans to make “short-term sacrifices” like avoiding large gatherings and postponing business travel, and he warned that the next eight weeks would be critical for slowing the spread of the virus.He called upon Americans to make “short-term sacrifices” like avoiding large gatherings and postponing business travel, and he warned that the next eight weeks would be critical for slowing the spread of the virus.
”This will pass through,” Mr. Trump said, “and we’re going to be even stronger for it.””This will pass through,” Mr. Trump said, “and we’re going to be even stronger for it.”
But the president defied the greeting conventions that doctors are now recommending to limit virus transmission. Standing at a lectern in the Rose Garden, he called several corporate executives to a shared microphone — which many of them touched in turn — and shook many of their hands, which doctors have instructed Americans to avoid. He played down questions about his exposure to a Brazilian official who visited Mr. Trump last weekend at his Mar-a-Lago resort and who has since tested positive for the virus. Reporting was contributed by Catie Edmondson, Nicholas Fandos, Maggie Haberman, Margot Sanger-Katz, Jeanna Smialek, Sheryl Gay Stolberg and Alan Rappeport.
The president told reporters that he had not exhibited any symptoms of the virus and swatted aside questions about whether he should be tested. But repeatedly pressed on the matter, Mr. Trump eventually said he was likely to be tested.
“Fairly soon,” he said. “We’re working out a schedule.”
Catie Edmondson, Nicholas Fandos, Maggie Haberman, Margot Sanger-Katz, Jeanna Smialek, Sheryl Gay Stolberg and Alan Rappeport contributed reporting.