UPDATE 7-U.S. House passes stopgap funding bill to avoid government shutdown
WASHINGTON, Dec 18- The U.S. House of Representatives on Friday passed and sent to the Senate a two-day stopgap extension of existing federal funds to avoid a midnight government shutdown, as negotiators work on a $900 billion coronavirus aid bill and a $1.4 trillion government-wide spending bill through September 2021. If it passes in the Senate, the measure…
By Patricia Zengerle and Richard Cowan
WASHINGTON, Dec 18 (Reuters) – The U.S. House ofRepresentatives on Friday passed and sent to the Senate atwo-day stopgap extension of existing federal funds to avoid amidnight government shutdown, as negotiators work on a $900billion coronavirus aid bill and a $1.4 trillion government-widespending bill through September 2021.
The Senate is expected to try to vote later on Friday on thestopgap measure, which provides government agency fundingthrough midnight on Sunday. It will need the cooperation of all100 senators to bypass procedural steps and hold a quick vote.
If it passes in the Senate, the measure would go toPresident Donald Trump for signing into law.
After months of partisan finger-pointing and inaction,Republicans and Democrats have been negotiating intensely onwhat is expected to be the biggest package since spring toprovide relief to a country struggling with a pandemic killingover 3,000 people a day.
With some support from Trump, who leaves office on Jan. 20,and Democratic President-elect Joe Biden, they have reportedprogress.
But enough differences remain – including a dispute over aRepublican-backed plan to rein in Federal Reserve lendingprograms intended to ease the pandemic’s economic sting – thattalks look likely to stretch into the weekend.
Senator John Thune, the chamber’s No. 2 Republican, said anagreement was coming together, but disagreement over the Fedrules was a major sticking point.
“That’s a big one,” he told reporters at the Capitol. “Thereare various ideas about how to resolve that, but it’s somethingthat’s a very big priority for a lot of our members.”
Some Republicans accused Democrats of using the lendingauthorities as a backdoor way to provide aid to state and localgovernments that Republicans dismiss as a “slush fund” forDemocratic-controlled local governments.
Other sticking points include disagreements over the extentof relief for arts venues closed by COVID-19 restrictions and adispute over whether to increase reimbursements from the FederalEmergency Management Agency to local governments for items likepersonal protective equipment for schools.
Many issues have been settled. The coronavirus legislationis expected to include onetime checks for most Americans ofabout $600 each, extended unemployment benefits of $300 perweek, help for states distributing the vaccine, and assistancefor small businesses struggling through the pandemic.
Congressional leaders plan to attach the COVID-19 aid to the$1.4 trillion spending bill.
‘OPTIMISTIC’
Republican Senate Majority Leader Mitch McConnell said talksremained productive. “I am even more optimistic now than I waslast night that a bipartisan, bicameral framework for a majorrescue package is close at hand,” McConnell said.
He said the Senate would remain in session through theweekend if necessary to reach a deal.
The prospect of a government shutdown increased pressure tocome up with a relief plan. An extended shutdown would forcethousands more people out of work and disrupt services just asthe country is ramping up distribution of coronavirus vaccines,though the effects would not be fully felt over the weekend.
“I am so frustrated by the inability of us to act likeadults, with responsibility,” Steny Hoyer, the No. 2 HouseDemocrat, told reporters. “We have a government of 2 millionpeople that are waiting every hour to find out if they are goingto be working.”
Congress was spurred to action by an alarming increase inhospitalizations and deaths. The U.S. coronavirus death toll,now over 311,000, is by far the world’s highest and manyAmericans – who do not receive government aid that is automaticin many other nations – are at risk of homelessness or inabilityto feed their families.
Biden has said he wants COVID-19 relief for Americans passednow, promising to do more after he is sworn in.
Republicans also have a wary eye on the impact inactionmight have on a pair of Jan. 5 runoff elections in Georgia,which will determine whether their party maintains control ofthe Senate for the next two years or hands it over to Democrats.
Democrats say Republican Senator Pat Toomey is promoting hisplan to rein in the Fed’s emergency lending authority in aneffort to make it more difficult for Biden’s incomingadministration to handle the COVID-19 crisis.
Toomey denied this, saying the lending authorities wereexpiring anyway.
Larry Kudlow, director of Trump’s National Economic Council,told reporters at the White House that the Trump administrationwas “strongly in support” of Toomey’s plan.
Brian Deese, Biden’s pick to succeed Kudlow, issued astatement saying the incoming administration was encouraged bythe bipartisan effort to provide relief to Americans, but thatit should not include Toomey’s provision.
(Reporting by Patirica Zengerle and Richard Cowan; additionalreporting by Alex Alper and Susan Cornwell in Washington andTrevor Hunnicut in Wilmington; editing by Scott Malone, JonathanOatis and Rosalba O’Brien)
