Senate Republicans are expected to unveil a $1 trillion coronavirus stimulus bill on Thursday that lacks a payroll tax cut as well as more direct payments to individuals.
Treasury Secretary Steve Mnuchin, the top White House negotiator on pandemic relief legislation, offered bill details during a morning CNBC appearance.
Items in the core Republican bill will include $105 billion in support for school reopening, Mnuchin said. It has a liability shield for businesses that reopen, reduces a boost in federal unemployment insurance down to 70 percent of pre-pandemic pay and extends the Paycheck Protection Program for businesses.
Senate Majority Leader Mitch McConnell (R-Ky.) has opted to release multiple bills instead of just one package. And although direct payments won’t be in the core package, it’s likely to be in a smaller side-package, Mnuchin said.
The legislative approach by McConnell is different than in prior relief bills, where Democrats and Republicans hashed out grand compromises after lengthy backroom horse-trading.
“Well, the process is, there are individual bills for all these different programs. [White House Chief of Staff] Mark Meadows and I were working late last night with Mitch and his staff,” Mnuchin said.
Many Republicans object to more direct payments, and President Trump’s requested payroll tax cut found few backers in the GOP caucus.
There’s also likely to be fierce disagreement on reducing the federal unemployment insurance boost, which expires this month. Democrats want a continued $600/week boost, but many Republicans are saying that disincentivizes returning to work.
In May, House Democrats passed a $3 trillion relief bill including bailouts for states and rent and mortgage assistance, in what was widely considered to be the Democratic opening bid in negotiations.
McConnell’s office did not immediately respond to a request for more information on the GOP bill, which is expected to be released Thursday.
