WASHINGTON | Top Trump administration officials and congressional leaders struggled Monday to finalize a nearly $2 trillion economic rescue package as the coronavirus crisis deepened, even as President Donald Trump seemed to suggest he had qualms about extending the current 15-day suggested shutdown.
“I didn’t expect to be starting off my week with such a dire message for America,” Surgeon General Jerome Adams said on “CBS This Morning,” as he warned the numbers will grow get worse this week. “Things are going to get worse before they get better. We really need everyone to understand this…and lean into what they can do to flatten the curve.”
Only hours before the surgeon general’s dire warning, Trump suggested in a tweet that the remedies may be more harmful than the outbreak in a tweet that contradicted the advice of medical experts across the nation.
“WE CANNOT LET THE CURE BE WORSE THAN THE PROBLEM ITSELF,” he wrote, adding: “AT THE END OF THE 15 DAY PERIOD, WE WILL MAKE A DECISION AS TO WHICH WAY WE WANT TO GO!”
Trump officials and congressional leaders, meanwhile, were to resume talks at 9 a.m. after working through the night on the massive $2 trillion economic rescue plan. Democrats had derailed the plan Sunday night, arguing it was tilted toward corporations and did too little to help workers and health care providers.
Treasury Secretary Steven Mnuchin exited the Capitol just before midnight, struck an optimistic note: “We’re very close,” he said, adding negotiators would work through the night.
“Our nation cannot afford a game of chicken,” warned Senate Majority Leader Mitch McConnell, R-Ky., his voice rising on the Senate floor Sunday night. His goal is to vote Monday. The Senate will re-convene at noon.
Senate Democratic Leader Chuck Schumer, D-N.Y, also sounded an optimistic note.
“This bill is going to affect this country and the lives of Americans, not just for the next few days, but in the next few months and years — so we have to make sure it is good, he said. ‘”There were some serious problems with the bill leader McConnell laid down. Huge amounts of corporate bailout funds without restrictions or without oversight — you wouldn’t even know who is getting the money. Not enough money for hospitals, nurses, PPE, masks, all the health care needs. No money for state and local government, many of whom would go broke. Many other things.”
But Schumer said they were making progress in dealing with those issues. “We’re getting closer and closer. And I’m very hopeful, is how I’d put it, that we can get a bill in the morning.”
On the economic front, the Federal Reserve announced Monday it will lend to small and large businesses and local governments as well as extend its bond buying programs as part of a series of sweeping steps to support the flow of credit through an economy ravaged by the viral outbreak.
The Fed said it will set up three new lending facilities that will provide up to $300 billion by purchasing corporate bonds, buying a wider range of municipal bonds, and purchasing asset-backed securities.
It also says it will buy an unlimited amount of Treasury bonds and mortgage-backed securities in an effort hold down interest rates and ensure those markets function smoothly.
With a population on edge and shell-shocked financial markets poised for the new work week, Washington labored under the size and scope of the rescue package that’s more ambitious than any in recent times — larger than the 2008 bank bailout and 2009 recovery act combined.
Democrats say the largely GOP-led effort did not go far enough to provide health care and worker aid and fails to put restraints on a proposed $500 billion “slush fund” for corporations. They voted to block its advance.
Democrats won a concession — to provide four months of expanded unemployment benefits, rather than just three as proposed, according to an official granted anonymity to discuss the private talks. The jobless pay also extends to self-employed and so-called gig workers.
Alarms were being sounded from coast to coast about the wave of coronavirus cases about to crash onto the nation’s health system.
New York City Mayor Bill de Blasio had dire, urgent news from the pandemic’s U.S. epicenter: “April and May are going to be a lot worse,” he said on NBC’s “Meet the Press.” He all but begged Washington to help procure ventilators and other medical supplies and accused the Republican president of “not lifting a finger” to help.
Trump urged Congress to get a deal done and, during the Sunday briefing, responded to criticism that his administration was sluggish to act. He cited his cooperation with the three states hardest hit — New York, Washington and California — and invoked a measure to give governors flexibility in calling up the national guard under their control, while the federal government covers the bill.
But even as Trump stressed federal-local partnerships, some governors, including Republican Greg Abbott of Texas, expressed unhappiness with Washington’s response. The president himself took a swipe hours earlier at Gov. J. B. Pritzker, D-Ill., saying that he and “a very small group of certain other Governors, together with Fake News” should not be “blaming the Federal Government for their own shortcomings.”
In recent days, Trump invoked the Defense Protection Act, a rarely used, decades-old authority that can be used to compel the private sector to manufacture needed medical supplies like masks and ventilators. Officials said Sunday that it would be used voluntarily and businesses would not be compelled to act.
“We are a country not based on nationalizing our business,” said Trump, who has repeatedly railed against socialism overseas and among Democrats.
Two days after he lashed out at a reporter who asked about his message to frightened Americans, Trump said, “For those worried and afraid, please know as long as I am your president, you can feel confident that you have a leader who will always fight for you.”
The urgency to act is mounting, as jobless claims skyrocket and fnancial markets are eager for signs that Washington can soften the blow of the healthcare crisis and what experts say is a looming recession. Stock futures declined sharply as Trump spoke Sunday evening.
Officials late Sunday put the price tag of the ballooning rescue package at nearly $2 trillion. That does not include additional measures being taken by the Federal Reserve to shore up the economy.
Central to the package is as much as $350 billion for small businesses to keep making payroll while workers are forced to stay home. There is also a one-time rebate check of about $1,200 per person, or $3,000 for a family of four, as well as the extended unemployment benefits.
Hospitals, Mnuchin said, will get approximately $110 billion for the expected influx of sick patients.
The treasury secretary said a significant part of the package will involve working with the Federal Reserve for up to $4 trillion of liquidity to support the economy with “broad-based lending programs.”
But Democrats, including House Speaker Nancy Pelosi, have pushed for add-ons, including food security aid, small business loans and other measures for workers.
They warned the draft plan’s $500 billion for corporations does not put enough restraints on business, saying the ban on corporate stock buy-backs is weak and the limits on executive pay are only for two years.
“We’re not here to create a slush fund for Donald Trump and his family, or a slush fund for the Treasury Department to be able to hand out to their friends,” said Massachusetts Sen. Elizabeth Warren. “We’re here to help workers, we’re here to help hospitals.”
The president, when pressed by a reporter, dodged a question as to whether his own business would seek federal funds.
With Sunday’s failed vote, McConnell angrily blamed Pelosi, who returned to Washington for a top-level meeting, saying she “poured cold water” over the draft plan. But any measure from the Senate also needs to pass the House.
The details are coming from drafts of both bills circulating among lobbyists but not yet released to the public. They were obtained by The Associated Press.
For most people, the new coronavirus causes only mildf or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia.
The vast majority of people recover from the new virus. According to the World Health Organization, people with mild illness recover in about two weeks, while those with more severe illness may take three to six weeks to recover.
Bev Banks contributed. Associated Press writers Colleen Long, Hope Yen, Mary Clare Jalonick, Ricardo Alonso-Zaldivar, Alan Fram and Padmananda Rama contributed to this report.
The Associated Press receives support for health and science coverage from the Howard Hughes Medical Institute’s Department of Science Education. The AP is solely responsible for all content.