US Congress

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A bipartisan group of US lawmakers on Tuesday unveiled a $908bn Covid-19 relief bill aimed at breaking a months-long deadlock between Democrats and Republicans over new emergency assistance for small businesses, unemployed people, airlines and other industries.
The measure has not been written into legislation. Nor has it been embraced by the Trump administration, President-elect Joe Biden or leaders in the Senate or House of Representatives, all of whom would be needed for passage.
But it comes with the backing of a group of conservatives and moderates who claim it will appeal to a broad swath of Congress. Economists and senior government figures, including the Federal Reserve chair, Jerome Powell, have warned the US economy is at risk unless Congress acts.
Lawmakers are hoping to wrap up their work for the year by mid-December but they still have a massive government-funding bill to approve or else risk agency shutdowns starting on 12 December. If the bipartisan coronavirus aid bill gains traction, it could either be attached to the spending bill or advance on a separate track.
“It would be stupidity on steroids if Congress left for Christmas without doing an interim package,” said Senator Mark Warner, a Virginia Democrat.
Earlier this year, more than $3tn in coronavirus aid was enacted, which included economic stimulus measures and money for medical supplies. But since then negotiations about more aid have stalled in Congress.
On Tuesday Powell told Congress that the outlook for the US economy was “extraordinarily uncertain” as the rise in Covid-19 cases continues to take an economic toll on the country. The latest monthly jobs report, released on Friday, is expected to show that the pace of recovery in the jobs market is continuing to slow.
The plan was unveiled at a Capitol Hill news conference, amid a surge in coronavirus cases, with significant increases in deaths and hospital resources at a breaking point.
The Republican senator Lisa Murkowski, of Alaska, urged quick action on the bipartisan plan as she ticked off business closures mushrooming in her state “during a pretty dark and cold time of year”, with many suffering job losses and “food insecurity”.
The proposal would provide emergency aid through 31 March, including $228bn in paycheck protection program funds for hotels, restaurants and other small businesses. State and local governments would receive direct aid, the lawmakers said.
The Ohio governor, Mike DeWine, a Republican, appealed for help from Congress, noting in an interview on CBS that his state has more than 5,000 coronavirus patients in hospitals and not enough money to distribute the much-awaited Covid vaccines that are expected to be available beginning this winter.
US airlines would receive $17bn for four months of payroll support as part of $45bn for the transportation sector that also includes airports, buses and Amtrak passenger rail, according to two people familiar with the plan.
Senator Mitt Romney of Utah, a Republican, said the bill contained $560bn in “repurposed” funding from the Cares Act enacted in March, with the remaining $348bn in new money.
The measure includes provisions Republicans have been pressing for, including liability protections for businesses and schools. But it is far more expensive than the $500bn that the Senate majority leader, Mitch McConnell, has been advocating.
The House speaker, Nancy Pelosi, and her fellow Democrats would win a central demand with the aid to state and local governments, which face layoffs of frontline workers.
A compromise $300 a week for four months in additional unemployment benefits is in the package, according to the lawmakers. Democrats had been seeking $600.
Separately, a group of Democratic senators introduced legislation on Tuesday that would extend until October 2021 the $600 a week in jobless benefits for workers who lost their jobs due to Covid-19.
While it is significantly below the $2.2tn Pelosi sought in her last offer to the White House before the 3 November elections, the $908bn is for a relatively short period, potentially opening the door to additional requests for money once the Biden administration is in place.
Pelosi and the treasury secretary, Steven Mnuchin, were expected to discuss coronavirus aid and the must-pass government funding bill later on Tuesday. More

The US Congress on Monday began a two-week sprint to rescue the federal government from a possible shutdown amid the coronavirus pandemic, the first major test since the election of whether Republicans and Democrats intend to cooperate.Government funding for nearly all federal agencies expires on Saturday 11 December.Congressional negotiators have made progress on how to divvy up around $1.4tn to be spent by 30 September 2021, the end of the current fiscal year, according to a House of Representatives Democratic aide.But more granular details are still unresolved and votes by the full House and Senate on a huge funding bill may come close to bumping up against that 11 December deadline.Still unclear is whether Donald Trump, who was defeated in the 3 November election, will cooperate with the effort.If the post-election “lame duck” session of Congress fails to produce a budget deal, the new Congress convening in January would have to clean up the mess just weeks before the inauguration of Joe Biden.Trump has already warned that he would veto a wide-ranging defense authorization bill Congress aims to pass if a provision is included stripping Confederate leaders’ names from military bases.Failure by the Democratic-controlled House and Republican-controlled Senate to pass a spending bill could have dire consequences. Some healthcare operations could be short-staffed or otherwise interrupted at a time when Covid-19 cases in the US have been surging. Nearly 267,000 people have died in the US as a result of the virus.The spending bill could be the vehicle for providing billions of dollars to state and local governments to help them handle coronavirus vaccines on track to be available in coming weeks and months.Beyond pandemic worries, if government funds were allowed to run out next month, airport operations could slow, national parks would close, some medical research would be put on hold and thousands of other programs would be jeopardized as government workers are furloughed, further hurting the struggling US economy.Washington suffered record-long partial shutdowns between 22 December 2018 and 25 January 2019, the result of a standoff between Democrats and Trump over funding the US-Mexico border wall that was a centerpiece of his presidency.This time around, Republicans are seeking $2bn for the southern barrier that most Democrats and some Republican lawmakers claim is an ineffective remedy to halting illegal immigration.Negotiators also have been battling over the amount of money Republicans want for immigrant detention beds.Disagreements over abortion and family planning, education and environment programs also have been simmering. If they cannot be resolved by 11 December, agency shutdowns could be avoided only by Congress passing a stopgap funding bill.Also hovering over the budget debate will be warnings that emergency funds must be allocated in separate coronavirus aid legislation following months of deadlock.Democrats’ most recent offer was a wide-ranging $2.2tn bill to help state and local governments deal with the health and economic crisis, expand Covid-19 testing and supplies, and renew federal direct payments to individuals and families during the pandemic.Their goal is to provide a significant shot of stimulus to an economy that many experts fear could take a second dive in coming months if the pandemic shuts down more businesses.Republicans have deemed that proposal exorbitant and have been sticking with calls for a scaled-down $500bn menu of initiatives.So far there have been no signs of serious negotiations, leaving many to believe a stimulus bill will be the first order of business in Biden’s presidency, which begins on 20 January. More