Stakes rise for virus talks as jobless aid lapses, GDP drops
WASHINGTON (AP) — Frustrated negotiators of a massive coronavirus relief bill face heightened pressure with Thursday's brutal economic news and the rapidly approaching lapse in a $600 per-week expanded jobless benefit that has helped prop up consumer demand.
Talks are at a standstill with few reasons for optimism despite sweeping agreement among Washington's top power players that Congress must pass further relief in coming days and weeks.
President Donald Trump is eager for another COVID relief package, also a priority for GOP allies like Senate Majority Leader Mitch McConnell, as well as House Speaker Nancy Pelosi and top Senate Democrat Chuck Schumer. Democrats hold a strong negotiating hand, with Republicans badly divided over their own proposal.
Raising the stakes, a bleak government report released Thursday said the economy shrank at a 33% annualized rate in the second quarter of the year, a stark reminder of the economic damage afflicting the country as lawmakers debate the size and scope of new relief.
“This jarring news should compel Congress to move swiftly to provide targeted and temporary assistance to unemployed Americans, employers, and state and local governments, and liability protections for businesses who follow public health guidelines," said Neal Bradley of the U.S. Chamber of Commerce, the powerful business group.
But bipartisan talks have yet to reach a serious, productive phase. White House chief of staff Mark Meadows, a relative newcomer to high-stakes Capital Hill negotiations, declared Wednesday that the two sides are “miles apart.”
Democrats are playing hardball so far, insisting on a package that's far larger than the $1 trillion-plus measure unveiled by McConnell on Monday. Thursday brought more tit-for-tat.
“They won’t...