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Democrats Again Block Action on Rescue Plan, Seeking Restrictions on Corporate Aid Democrats Block Action on Stimulus, Seeking Restrictions on Corporate Aid
(about 3 hours later)
WASHINGTON — Senate Democrats on Monday again blocked action on a nearly $2 trillion economic rescue measure to respond to the coronavirus pandemic, insisting on stronger protections for workers and restrictions for bailed-out businesses as they rushed to reach a deal with the Trump administration. WASHINGTON — Senate Democrats on Monday blocked action for the second day in a row on a nearly $2 trillion emergency economic aid measure to respond to the coronavirus pandemic, insisting on stronger protections for workers and restrictions for bailed-out businesses as they struggled to reach a deal with the Trump administration.
The normally staid Senate dissolved into shouting and partisan bickering before the vote, as senators sparred over the huge government rescue package. Republicans blasted Democrats for delaying desperately needed economic aid, while Democrats said the measure under discussion did too little to help ordinary Americans and ensure that federal money would not be abused by businesses that received aid. Despite a sense of desperation in both parties and at the White House about quickly enacting a stabilization package to deliver critical financial support to businesses forced to shutter and relief to American families, sharp ideological differences between Republicans and Democrats were making it difficult to reach a final compromise.
As urgent negotiations continued behind the scenes, the deep well of distrust between Democrats and President Trump was hampering agreement, and the shadow of the last huge government aid program approved by Congress — the Wall Street bailout in 2008 — hung over the talks, a cautionary tale of the political risks of sending federal money to corporations.
The normally staid Senate dissolved into shouting and partisan bickering before the vote, as senators sparred over the stimulus package, which is emerging as the largest in modern history. Republicans blasted Democrats for delaying desperately needed economic aid, while Democrats said the measure under discussion did too little to help ordinary Americans or to ensure that federal money would not be abused by businesses that received aid.
“Are you kidding me?” Senator Mitch McConnell, Republican of Kentucky and the majority leader, demanded on the Senate floor. “This is not a juicy political opportunity. This is a national emergency.”“Are you kidding me?” Senator Mitch McConnell, Republican of Kentucky and the majority leader, demanded on the Senate floor. “This is not a juicy political opportunity. This is a national emergency.”
The extraordinary scene unfolded the day after Democrats first blocked action on the measure, which is emerging as the largest economic stimulus measure in modern history. The 47-47 vote on Sunday evening shook markets around the globe and infuriated Republicans who said it ignored bipartisan talks that had yielded substantial compromises over the outlines of the measure. The remarkable scene unfolded the day after Democrats first blocked action on the measure. The 47-to-47 vote on Sunday evening shook markets around the globe on Monday and infuriated Republicans who said it ignored bipartisan talks that had yielded substantial compromises over the outlines of the measure.
The outcome was similar on Monday, as the Senate voted 49-46, falling short of the 60 votes that would have been needed to go forward on the rescue measure. Republicans insisted on holding the vote in the absence of an agreement, seizing an opportunity to portray Democrats as obstacles to a deal. The outcome was similar on Monday, as the Senate voted 49 to 46, falling short of the 60 votes that would have been needed to go forward on the stabilization measure. Republicans insisted on holding the vote in the absence of an agreement, seizing an opportunity to portray Democrats as obstacles to a deal.
The defeat and the testy exchanges overshadowed an urgent set of negotiations that continued behind the scenes between Senator Chuck Schumer, Democrat of New York, and Steven Mnuchin, the Treasury secretary, to iron out remaining differences. The markets reacted with a shudder, with the S&P 500 falling about 3 percent, even after the Federal Reserve said it would vastly expand its efforts to shore up businesses and keep markets functioning.
“We Democrats are trying to get things done, not making partisan speech after partisan speech,” said Mr. Schumer on the Senate floor, pointing out he had met repeatedly with Mr. Mnuchin and Eric M. Ueland, the White House legislative affairs director, over the last 24 hours. “Our goal is to reach a deal today, and we are hopeful, even confident, that we will meet that goal.” The defeat and the testy exchanges overshadowed an urgent set of negotiations that continued all day behind the scenes between Senator Chuck Schumer of New York, the Democratic leader, and Steven Mnuchin, the Treasury secretary, to iron out remaining differences. Both men reported making progress late Monday afternoon, with Mr. Schumer indicating to colleagues on a call just after 5 p.m. that he was hopeful an agreement could be reached later in the evening, according to people familiar with the discussion.
Mr. Mnuchin declined to provide specifics, but said the two sides were “very close” to a deal. “We are knocking down the issues,” he said. “We have been working all morning, and we are not leaving until we have a deal.” “We Democrats are trying to get things done, not making partisan speech after partisan speech,” he said on the Senate floor earlier in the day. “Our goal is to reach a deal today, and we are hopeful, even confident, that we will meet that goal.”
At the heart of the impasse in the Senate is a $425 billion fund created by the bill that the Federal Reserve could leverage for loans to assist broad groups of distressed companies, and an additional $75 billion it would provide for industry-specific loans. Democrats have raised concerns that the funds do not have rules for transparency or enough guardrails to make sure companies do not use the funds to enrich themselves or take government money and lay off workers. They also argue the measure would give Mr. Mnuchin too much discretion to decide which companies receive the funds, calling the proposal a “slush fund” for the administration. Mr. Mnuchin declined to provide specifics as he shuttled between the offices of Mr. Schumer and Mr. McConnell, but said the two sides were “very close” to a deal.
As the legislation is currently written, Mr. Mnuchin would not have to disclose the recipients until six months after the loans were disbursed. Some Democrats also said the legislation as written could allow Mr. Trump’s real estate empire to take advantage of the federal aid. “We’re really cutting down the list of issues,” he told reporters on Monday afternoon. “I think everybody wants to get this done today.”
Hanging over the debate for senators in both parties were unpleasant memories of the stinging backlash from the 2008 and 2009 economic recovery programs that were later condemned on the right and left for helping Wall Street at the expense of working Americans. Democrats said they would not be bullied into supporting the stimulus package by Mr. McConnell, despite evident political risks as they faced in a battle for control of the Senate in November.
“The fact is, we need to learn from 10 years ago,” said Senator Sherrod Brown, Democrat of Ohio. “If we’re going to do relief package, the money needs to go in the pockets of workers.”
At the heart of the impasse in the Senate is a $425 billion fund created by the bill that the Federal Reserve could leverage for loans to assist broad groups of distressed companies, and an additional $75 billion it would provide for industry-specific loans. Democrats have raised concerns that the funds do not require sufficient transparency or enough guardrails to make sure companies do not use the funds to enrich themselves or take government money and lay off workers. They also argue the measure would give Mr. Mnuchin too much discretion to decide which companies receive the funds, calling the proposal a “slush fund” for the administration.
As the legislation is currently written, Mr. Mnuchin would not have to disclose the recipients until six months after the loans were disbursed. Some Democrats also said the legislation as written could allow Mr. Trump’s real estate empire to take advantage of the federal aid, and after years of being stonewalled by the White House on oversight requests, they worried that the administration would refuse attempts by Congress to keep tabs on the program.
Mr. Mnuchin has argued that bolstering the fund would allow the Federal Reserve to effectively inject $4 trillion into the economy, and that he needs the authority to swiftly support companies and industries that are on the brink of collapse as large swaths of the economy shut down. On Monday, he pushed back against the suggestion that the money would become a piggy bank for Mr. Trump’s allies.
“I’ve heard people refer to this as a slush fund,” Mr. Mnuchin said on the Fox Business Network. “It’s not a slush fund.”
Democrats are also pushing for more jobless aid and money for states as part of the agreement.Democrats are also pushing for more jobless aid and money for states as part of the agreement.
“Let’s be clear about what we are talking about here: We don’t think your bill works,” said Senator Chris Murphy, Democrat of Connecticut. “This is a policy disagreement, and I have an obligation as a representative of my state to stand up and say when I don’t think a $2 trillion bill is going to solve the problem.” “Let’s be clear about what we are talking about here: We don’t think your bill works,” said Senator Christopher S. Murphy, Democrat of Connecticut. “This is a policy disagreement, and I have an obligation as a representative of my state to stand up and say when I don’t think a $2 trillion bill is going to solve the problem.”
Only one Democrat, Senator Doug Jones of Alabama, joined Republicans in voting to advance the package.Only one Democrat, Senator Doug Jones of Alabama, joined Republicans in voting to advance the package.
The debate beforehand was unusually fiery, escalating as Mr. Schumer repeatedly cut off attempts by Senator Susan Collins, Republican of Maine, to be recognized to speak. The debate beforehand was unusually fiery debate, escalating as Mr. Schumer repeatedly cut off attempts by Senator Susan Collins, Republican of Maine, to be recognized to speak.
“This is unbelievable,” Ms. Collins fumed, as other Republicans pushed to allow her to weigh in. She walked over to Mr. Schumer, pointing at him, and said: “You are objecting to my speaking? This is appalling.”“This is unbelievable,” Ms. Collins fumed, as other Republicans pushed to allow her to weigh in. She walked over to Mr. Schumer, pointing at him, and said: “You are objecting to my speaking? This is appalling.”
Senator Tom Cotton, Republican of Arkansas, muttering audibly, used a barnyard epithet to express his assessment of the situation.Senator Tom Cotton, Republican of Arkansas, muttering audibly, used a barnyard epithet to express his assessment of the situation.
When Ms. Collins did get time to speak, she warned that time was running out to preserve small businesses in her state and across the country teetering on the bring of collapse.When Ms. Collins did get time to speak, she warned that time was running out to preserve small businesses in her state and across the country teetering on the bring of collapse.
“We don’t have another day. We don’t have another hour. We don’t have another minute to delay acting,” she said. “This is disgraceful.”“We don’t have another day. We don’t have another hour. We don’t have another minute to delay acting,” she said. “This is disgraceful.”
Mr. McConnell later returned the favor, albeit more gently, cutting off Senator Joe Manchin, Democrat of West Virginia, as he spoke. Mr. McConnell suggested that Mr. Manchin and the Democrats either misunderstood or were misrepresenting Senate procedure to needlessly slow down debate. An exasperated Senator John Thune of South Dakota, the No. 2 Senate Republican, turned to the Democratic side of the chamber and said, “The country is burning, and your side wants to play political games.”
“We can’t even get on the bill,” said Senator John Thune of South Dakota, the second-ranking Republican said, turning to the Democratic side of the chamber. “The country is burning, and your side wants to play political games.” At the White House, Vice President Mike Pence sought to ratchet up pressure on Democrats to drop their opposition. On a conference call Monday afternoon, he urged governors to press their states’ representatives in Congress to get the bill moving.
In the House, Speaker Nancy Pelosi of California was expected to unveil her own rescue package, although it remains unclear how that would be reconciled with any compromise legislation that emerges from the Senate negotiations. “Governors, it will make a real difference,” Mr. Pence said, according to a recording of the call obtained by The New York Times.
“The Senate Republicans’ bill, as presented, put corporations first, not workers and families,” Ms. Pelosi said in a statement, adding that the House Democrats’ bill “takes responsibility for the health, wages and well-being of America’s workers.” Senate Republicans and Democrats have already struck a number of major compromises on the package, including tentative agreement on sending $1,200 government payments to those earning up to $75,000 a year, with an additional $500 per child, with smaller checks for those earning more and an upper eligibility limit of $99,000 in income. By Monday afternoon, they appeared to be nearing an agreement on hundreds of billions of dollars to support hospitals struggling to care for the thousands infected by the virus.
The bill, according to a summary provided Ms. Pelosi’s office, includes a national requirement for both 15 days of early voting and no-excuse absentee vote-by-mail and election security funding — something Senate Republicans dismissed as irrelevant to the debate at hand — and nearly $40 billion for schools and universities, coupled with free coronavirus treatment and expanded paid leave. But Democrats are pushing to strengthen worker protections, arguing that the draft legislation fails to prevent layoffs, and enforce heavier restrictions on executive compensation and companies’ ability to buy back stock. Led by Mr. Schumer, they are also calling for an more funds to send to individual states to help them combat the outbreak and the economic turmoil of having to close businesses and cities.
Mr. McConnell and other Republicans have blamed Ms. Pelosi, who returned to Washington from San Francisco on Saturday to partake in a leadership meeting, for upending a productive set of bipartisan negotiations. But Ms. Pelosi has repeatedly been in engaged in phone calls with Mr. Mnuchin and Mr. Schumer, and dispatched her top staff to work in tandem with top Democratic staff in the Senate. Democrats are also want to extend jobless benefits in the legislation for an additional month. Republicans have already agreed to a large expansion of the unemployment insurance program, broadening it to include self-employed and part-time workers who traditionally have not been eligible, and to cover 100 percent of wages for three months.
Senate Republicans and Democrats have already struck a number of major compromises on the package, including tentative agreement on sending $1,200 government payments to those earning up to $75,000 a year, with an additional $500 per child, with smaller checks for those earning more and an upper eligibility limit of $99,000 in income. There is also disagreement, according to two people familiar with the negotiations, but unauthorized to discuss them publicly, over how much money to allocate to farmers and whether to expand nutrition assistance benefits. Democrats have also raised concerns about language that could prevent Planned Parenthood and other community mental health providers that rely on Medicaid from receiving loans and an extension of an abstinence education program set to expire in May.
But Democrats are pushing to strengthen worker protections, arguing that the draft legislation fails to prevent layoffs, and enforce heavier restrictions on executive compensation and companies’ ability to buy back stock. Led by Mr. Schumer, they are also calling for an additional hundreds of billions of dollars to support hospitals struggling to care for the thousands infected by the virus and more funds to send to individual states to help them combat the outbreak and the economic turmoil of having to close businesses and cities. In the House, Speaker Nancy Pelosi of California and House Democrats unveiled their own stimulus package, which would provide more than $2.5 trillion in federal spending. It remained unclear how that 1,400-page measure would be reconciled with any compromise legislation that emerges from the Senate negotiations.
Democrats are also pressing to extend jobless benefits in the legislation for an additional month. Republicans have already agreed to a large expansion of the unemployment insurance program, broadening it to include self-employed and part-time workers who traditionally have not been eligible, and to cover 100 percent of wages for three months. “The Senate Republican bill put corporations first,” Ms. Pelosi said during brief televised remarks.
There is also disagreement, according to two people familiar with the negotiations, but unauthorized to discuss them publicly, over how much money to allocate to farmers. The House bill, according to summaries circulated by Democrats, would deliver $1,500 in direct payments to individuals, more than $150 billion to hospitals and government health programs and creates an unemployment compensation of $600 a week along with regular unemployment benefits.
“This bill is going to affect this country and the lives of Americans — not just for the next few days, but in the next few months and years,” Mr. Schumer said Sunday evening, “so we have to make sure it is good.” It would also include a national requirement for 15 days of early voting and no-excuse absentee vote-by-mail and election funding and nearly $60 billion for schools and universities, coupled with free coronavirus treatment and expanded paid leave.
Incensed by the 47-to-47 party-line vote on Sunday, which failed to meet the 60 votes needed to move forward on the measure, Republicans have accused Democrats of reneging on days of bipartisan negotiations and belatedly pressing for additions that are unrelated to the coronavirus outbreak. Mr. McConnell and other Republicans spent much of the day blaming Ms. Pelosi, who returned to Washington from San Francisco on Sunday to participate in the stimulus talks, for upending a productive set of bipartisan negotiations. But Ms. Pelosi has repeatedly been engaged in phone calls with Mr. Mnuchin and Mr. Schumer, and dispatched her top staff to work in tandem with top Democratic staff in the Senate.
A senior Republican aide, speaking on condition of anonymity to disclose details of the private negotiations, pointed to efforts to expand collective bargaining rights for unions and implement increased fuel emission standards for airlines and expand wind and solar tax credits as examples. A senior Republican aide, speaking on condition of anonymity to disclose details of the private negotiations, said Democrats were trying to use the stimulus measure to accomplish long-held, unrelated policy priorities, including expanding collective bargaining rights for unions, implementing an extension of solar and wind tax credits to help the renewable energy industry, and tying aid to airlines to gradual reductions on carbon dioxide emissions that they have long resisted.
Senate Republicans are also short on members, after Senator Rand Paul of Kentucky tested positive on Sunday for the coronavirus, prompting two other Republicans who had contact with him — Senators Mitt Romney and Mike Lee of Utah — to isolate themselves. Mr. Paul, who voted against the $8.3 billion in emergency aid and a second package to provide paid leave, jobless aid, and food and health care assistance, had remained in the Capitol until Sunday, when he learned of his diagnosis. The dire economic outlook is not the only critical incentive for Congress to act quickly, as the effects of the novel coronavirus are increasingly being felt on Capitol Hill. Senate Republicans are already short on members, after Senator Rand Paul of Kentucky tested positive on Sunday for Covid-19, prompting two other Republicans who had contact with him — Senators Mitt Romney and Mike Lee of Utah — to isolate themselves.
A sign taped to the Republican side of the clerk’s desk read: “SOCIAL DISTANCE” in block letters with “please & thank you” written in cursive font underneath. A sign taped to the Republican side of the clerk’s desk read: “SOCIAL DISTANCE” in red block letters with “please & thank you” written in cursive underneath.
Two other Republican senators, Rick Scott of Florida and Cory Gardner of Colorado, had already been in isolation. “We should not be physically present on this floor at this moment,” said Senator Richard J. Durbin of Illinois, the No. 2 Senate Democrat, imploring his colleagues to consider remote voting to spare their health and that of their aides. “We know better.”
Reporting was contributed by Carl Hulse, Alan Rappeport, Lisa Friedman and Jonathan Martin.