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Congress, White House race to draft $1T rescue package

Federal officials announces measures, plans for COVID-19 pandemic

WASHINGTON (AP) — Leaders from Congress and the White House buckled down for high-stakes negotiations Friday on a mammoth $1 trillion-plus economic rescue package as President Donald Trump lashed out over questions of his handling of the coronavirus outbreak.

The undertaking on Capitol Hill is the most ambitious federal effort yet to shore up households and the U.S. economy as the pandemic and its nationwide shutdown grips the country. The goal is passage by Monday.

“Our nation needs a major next step, and we need it fast,” said Senate Majority Leader Mitch McConnell.

Despite
the enormous pressure on Washington, the challenges are apparent as
lawmakers labor over eye-popping sums and striking federal
interventions, surpassing even the 2008-09 bank bailout and stimulus.

Treasury
Secretary Steven Mnuchin launched talks on Capitol Hill, using as a
starting point McConnell’s offer from Republicans, which aims to pump
billions into $1,200 direct checks to Americans and billions for small
businesses to pay idled workers during the global pandemic.

But
Mnuchin also and conferred privately Friday with House Speaker Nancy
Pelosi and and Senate Democratic Leader Chuck Schumer as the two leaders
pressed for Democratic priorities. Preliminary Senate votes could come
Sunday.

As the nation braces for a healthcare crisis and national
recession, Democrats say the GOP leader’s plan is insufficient, arguing
for greater income support for workers and a “Marshall Plan” for the
U.S. healthcare industry, which is preparing for an onslaught of newly
sick patients.

In Friday phone calls with Trump, Schumer said the
president “was open” to many of the Democratic ideas, including the
surge of resources of hospitals and healthcare workers.

“We can’t
waste a day,” Schumer added. “I told the president we need to come
together and cooperate in this time of crisis. He agreed.”

Talks are expected to push into the night.

At the White House, Trump welcomed the stimulus plan, believing it is needed to stabilize the economy.

The
administration also announced a further closing the nation’s border, as
the U.S. and Mexico agreed to limit crossings to all but essential
travel and trade, while the U.S. moved to restrict entry to anyone
without documentation.

But Trump spent much of Friday’s daily briefing in a fury, an angry president lashing out at reporters questions.

When
one reporter noted the hard facts in the U.S. — that more than 200 are
dead, more than 14,000 infected and millions scared — and asked what the
president would tell a worried nation, Trump responded, “I say that
you’re a terrible reporter.”

Trump also sowed further confusion
about whether he is using the powers of the Defense Production Act to
force American businesses to manufacture needed medical supplies.

During
one of the phone calls Friday, Schumer said he specifically implored
the president to invoke the Korean War-era act to ramp up production
desperately needed ventilators and other gear.

Schumer said Trump
told the Democratic leader he would do it — and then could be heard
yelling to someone in his office “get it done.”

But Trump told
reporters he had put the order he invoked Wednesday “into gear” Thursday
night. He said had directed companies to launch production. But then he
also walked it back, saying, “You know, so far, we haven’t had to”
because companies are volunteering.

Unveiled Thursday, McConnell’s rescue proposal from Republicans builds on Trump’s request for Congress to “go big.”

The
GOP plan also proposes $300 billion for small businesses to keep idled
workers on payroll and $208 billion in loans to airlines and other
industries. It also seeks to relax a just-enacted family and medical
leave mandate on small-to-medium sized businesses from an earlier rescue
package.

It puts McConnell’s imprint on the GOP approach after
the Senate leader left earlier negotiations to Pelosi and Mnuchin, which
angered some of his GOP senators feeling cut out of the final product.

Keeping paychecks flowing for workers not at work is a top priority for both Democrats and Republicans as jobless claims skyrocket.

But
how best to send direct payments to Americans — as one-time stipends,
ongoing payroll support or unemployment checks — is a crucial debate.

Under
McConnell’s approach, small businesses with 500 or fewer employees
would be able to tap up to $10 million in forgivable loans from the
federal government to continue cutting paychecks.

Democrats
prefer sending the money to workers via the existing unemployment
insurance system. Schumer called it “unemployment insurance on
steroids.”

Both income support approaches have benefits and
drawbacks, lawmakers said. Republicans say their plan would keep workers
linked to employers, for easy recall once the crisis abates. Democrats
argue the unemployment system provides a ready-made distribution
channel, though states could also become overwhelmed by the surge of
jobless claims.

Meanwhile, industries of all kinds are lining up for help.

As
the Senate chairmen hammered out the details — and House chairmen
funneled their input — the total price tag is sure to grow beyond $1
trillion, lawmakers said.

The House, which adjourned last weekend, is not expected to resume until the new package is ready.

Lawmakers
on conference calls with leaders this week said they preferred not to
board airplanes amid the virus outbreak. Despite calls to change the
rules, Congress does not have a mechanism in place for remote voting.

Trump
has already signed into law a $100 billion-plus bill to boost testing
for the coronavirus and guarantee paid sick leave for millions of
workers hit by it. Earlier, Trump signed an initial $8.3 billion package
from Congress.

For most people, the new coronavirus causes only
mild or moderate symptoms, such as fever and cough. For some, especially
older adults and people with existing health problems, it can cause
more severe illness, including pneumonia.

The vast majority of
people recover from the new virus. According to the World Health
Organization, people with mild illness recover in about two weeks, while
those with more severe illness may take three to six weeks to recover.

Associated Press writers Jill Colvin, Darlene Superville, Matthew Daly, Mary Clare Jalonick, Ricardo Alonso-Zaldivar, Alan Fram and Padmananda Rama in Washington contributed to this report. The Associated Press receives support for health and science coverage from the Howard Hughes Medical Institute’s Department of Science Education. The AP is solely responsible for all content.