Pelosi Calls McConnell's Covid-19 Stimulus Plan 'Fraudulent'

Congressional leaders hardened their battle lines on additional fiscal stimulus on Tuesday, with House Speaker Nancy Pelosi labeling Republican Senate Majority Leader Mitch McConnell’s proposal for a slimmed-down package “fraudulent.”

The Republican bill, expected to feature some of the aspects of a $1 trillion proposal they put forth a month ago, is expected to cost $500 billion to $700 billion, potentially including some unspent funds allocated to back Federal Reserve facilities. It’s a far cry from the $2.2 trillion relief that Democrats want.

“The Senate Republican majority is introducing a new targeted proposal, focused on some of the very most urgent health-care, education and economic issues,” McConnell said in a statement. “I will be moving immediately today to set up a floor vote as soon as this week.”

Pelosi said in an interview with Bloomberg Television that McConnell’s proposal “isn’t even an attempt to do the right thing.” She said “we have tens of millions of people who are unemployed in this country,” and that requires sufficient stimulus.

Pelosi and Senate Democratic leader Chuck Schumer said in a joint statement earlier Tuesday that the Republican bill is a “check-the-box” effort to give endangered incumbents cover in the November election. Democrats can block the bill from debate on the Senate floor because it needs the support of 60 members to advance under filibuster rules.

Even so, White House Chief of Staff Mark Meadows, who has talked with moderate Democrats in recent weeks, said Tuesday he is optimistic that public pressure would push lawmakers into a compromise in the coming two weeks. He said the smaller package could serve as a “foundation” for further Covid-19 relief.

“There is a groundswell of support among rank-and-file Democrats and Republicans to suggest that there is some kind of compromise,” Meadows said in an interview with Fox Business.

A senior Republican aide said last week the pared-back bill will likely provide a $300-per-week unemployment benefit enhancement, $105 billion for schools, a $10 billion grant to the U.S. Postal Service, funding for the Paycheck Protection Program for small businesses, $45 billion to the Department of Health and Human Services for vaccines and testing needs, and liability protections for employers.

It won’t include another round of $1,200 checks to individuals -- something that President Donald Trump wants -- or any aid to state and local governments, a key demand of Democrats.

“The stumbling block is aid to state and local governments,” Meadows said Tuesday, reiterating his opposition to the Democrats’ proposal for almost $1 trillion in aid for regional authorities that have seen their revenues devastated by the Covid-19 crisis.

The Trump administration has characterized the aid as a reward for poorly run, mainly Democratic states. Pelosi in Tuesday’s interview that the GOP has “excuses,” not real reasons for opposing the effort. She suggested that restrictions could be placed to meet any objections.

McConnell tried and failed for weeks to get most of the Senate’s 53 Republicans on board with the broader $1 trillion plan in the face of opposition from deficit hawks concerned about adding to this year’s $3.3 trillion budget deficit. He’s previously said that as many 20 Senate Republicans were against any additional spending.

The White House and congressional Democrats have been more than $1 trillion apart on the stimulus since negotiations broke off Aug. 7. Democrats lowered their demand from $3.4 trillion to $2.2 trillion but haven’t budged beyond that. Pelosi on Tuesday said the top-line level could be reduced through shifts in timing, while noting that she’s “certainly” not negotiating with Meadows at this point.

The looming election will create pressure points for Trump as well as for incumbents in the House and Senate. The White House is pushing for stimulus payments for individuals to go out before the Nov. 3 election.

“Nobody wants to give direct payments to American families more than President Donald Trump,” Vice President Mike Pence said on CNBC Friday.

Immediately before their August break, two Senate Republicans trailing their Democratic challengers in polls -- Susan Collins of Maine and Martha McSally of Arizona -- helped introduce a bill that has a higher unemployment benefit enhancement than the one in the scaled-down proposal.

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