Stakes rise for coronavirus economic relief talks as jobless aid lapses, GDP drops
WASHINGTON — Senate Republicans blocked a last-ditch bid to pass the House's COVID-19 rescue package Thursday, heading for a long weekend off with unemployment aid, eviction moratoriums and other desperately needed help expiring.
The move came as the government reported the economy is on track to shrink by a third -- an unprecedented drop not even seen in the Great Depression -- and some 30 million people are collecting enhanced unemployment benefits that are boosted by $600 a week from the federal government.
The boost ends this week, and a ban on booting renters who are in arrears ended Saturday, but the Senate has been deadlocked on passing a new relief bill.
Senate Minority Leader Chuck Schumer (D-N.Y.) took to the floor in the afternoon to try to break open the logjam by offering the $3 trillion Heroes Act passed by the House 10 weeks ago.
“We have to do something. The Heroes Act is the right thing to do,” Schumer said, seeking unanimous consent to pass the bill.
As expected, Republicans objected but Schumer argued it was essential to lean on the Senate Majority Leader Mitch McConnell (R-Ky.), who offered a much smaller package of bills earlier this week that many of his own members don’t like.
Schumer predicted the GOP would cave, and said it was the same pattern with previous pandemic relief bills that Republicans at first opposed.
“Our Republican friends will feel the pressure from their constituents, and from national news, to realize that they have to come and negotiate in good faith on a bold, strong bill, a comprehensive bill, that will pass,” Schumer said.
Sen. Ron Johnson (R-Wis.) objected on behalf of the GOP, saying the Heroes Act is too expensive, and that it's Schumer who is playing games.
"It's not a serious proposal, which is why Leader McConnell could not negotiate, because they weren't negotiating in good faith," Johnson said. "The Democrats are being cynical."
The Republican Senate plan would lower the enhanced unemployment to just $200 a week.
At the moment, though, there will be no boost for anyone as of Friday.
"What Sen. McConnell has led us to is this moment where when we return next week, there will be no federal unemployment benefit. None. It will have expired," said Sen. Dick Durbin (D-Ill.).
"What do we say to these millions of family members who are struggling at this moment? Try harder? Go take anything? That's what the future is for you?" Durbin said. "I don't believe that. I think we're a better nation than that."
McConnell came to the Senate floor later to offer a shell bill that would be a vehicle for some sort of unemployment extension, although it was unclear what would be in it or whether he could get agreement from any side to pass something.
He blamed Democrats for the stalemate, saying the end goal of Schumer and House Speaker Nancy Pelosi was to pass a liberal wish list of items in the Heroes Act. He singled out a provision to restore state and local tax breaks that help higher-income states like Nee York.
“This is their position: Unemployed people, schools, hospitals, and American families will not see another dime unless they get to cut taxes for millionaires in Brooklyn and San Francisco, McConnell said. “That’s what this is about.”
