- House spokeswoman Nancy Pelosi blew up the White House’s $ 1.6 trillion spending plan on Thursday, saying it wasn’t even “half a loaf”.
- “What they offer is the heel of the loaf,” Pelosi said in a Bloomberg television interview.
- The high price of the White House plan could be a gamble as many Senate Republicans refuse to spend large sums of money on federal funds that could swell national debt.
- You can find more stories on the Business Insider homepage.
House Speaker Nancy Pelosi on Thursday embarked on the White House’s $ 1.6 trillion stimulus package, saying it would not be enough to address the dual economic and public crises caused by the pandemic Address health.
“This is not half a bread. What they offer is the heel of the bread,”
The California Democrat brought up a new area of dispute between Democrats and the Trump administration: the child tax credit, which lowers taxes owed by families with children under the age of 17. House Democrats are trying to give people with children the option of receiving a modest monthly federal payment regardless of their income.
Pelosi told Bloomberg that the White House had excluded any funding from the loan, which is claimed by 40 million families each year.
Earlier in the day, she said she was cautiously optimistic about getting a major sales deal with the White House. The Democrats this week rolled out a $ 2.2 trillion spending plan that includes $ 600 weekly unemployment benefits, another wave of $ 1,200 economic reviews, and aid to states and small businesses.
“We hope we can reach an agreement because the needs of the American people are so great,” Pelosi told reporters on Capitol Hill. “But there has to be an acknowledgment that it takes money to do that.”
White House press secretary Kayleigh McEnany confirmed Thursday that the government had tabled a $ 1.6 trillion proposal in negotiations on coronavirus aid with Democrats. She called it “a good proposal” with more spending than the Republicans revealed.
But McEnany said Pelosi was “not serious” because she insisted on robust spending. Treasury Secretary Steven Mnuchin and Pelosi have been in talks for five days.
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The White House plan could be a tough sell to Republicans
The high price of the White House plan could be a gamble as many Senate Republicans refuse to spend large sums of money on federal funds that could swell national debt.
However, pressure has increased on lawmakers to close a deal before they adjourn until after the elections next week. Millions of Americans are unemployed and struggling to get food and rent. And many economists have asked Congress to approve additional spending to keep people and businesses alive.
Both the Democratic-run House and the GOP-controlled Senate must approve identical auxiliary laws and send them to President Donald Trump’s desk in order for them to become law.
Key elements of the White House plan include:
- $ 300 billion for another round of direct payments to taxpayers.
- $ 300 billion for $ 400 weekly unemployment benefit through January 1.
- $ 250 billion for helping state and local governments.
- $ 175 billion on health expenses, coronavirus testing, and contact tracing.
- $ 160 billion for help to small businesses through the Paycheck Protection Program.
- $ 150 billion for education and support in reopening schools.
- $ 100 billion for restaurants in financial distress.
Democrats and the Trump administration agree to include stimulus checks in yet another bailout package and provide money for small businesses and schools.
However, major differences remain. The government is aiming to introduce federal unemployment benefits that will be $ 200 a week below what Democrats want. And it would provide less federal aid to financially troubled states.
Senate majority leader Mitch McConnell took up the Democratic plan on Wednesday and described it as failed. “We’re very, very far apart on a deal,” McConnell told reporters on Capitol Hill.