Tensions rise as $2 trillion virus aid stalls in Washington

Senate Majority Leader Mitch McConnell of Ky. arrives on Capitol Hill in Washington, Monday, March 23, 2020, as the Senate is working to pass a coronavirus relief bill. (AP Photo/Andrew Harnik)
Senate Majority Leader Mitch McConnell of Ky. arrives on Capitol Hill in Washington, Monday, March 23, 2020, as the Senate is working to pass a coronavirus relief bill. (AP Photo/Andrew Harnik)

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WASHINGTON (AP) - Tensions flared Monday as Washington strained to respond to the worsening coronavirus outbreak, with Congress arguing over a nearly $2 trillion economic rescue package.

As the U.S. braces for an onslaught of sick Americans, and millions are forced indoors to avert a spike that risks overwhelming hospitals, the most ambitious federal intervention in modern times is testing whether Washington can act swiftly to deal with the pandemic on the home front. By evening, there were no further votes set for Monday, as talks pushed into the night.

Treasury Secretary Steven Mnuchin said late Monday that negotiators still hoped to "close it out" as he left Senate Democratic leader Chuck Schumer's office. Near 8 p.m. CST, Schumer strode to the Senate floor upbeat over "very good discussions." He said they would keep working.

"It's time to get with the program, time to pass historic relief," said an angry Senate Majority Leader Mitch McConnell earlier in the day as he opened the chamber after a nonstop weekend session that failed to produce a deal. "This is a national emergency."

Fuming, McConnell warned Democrats - pointedly House Speaker Nancy Pelosi - to quit stalling on "political games," as he described Democratic efforts to steer more of the aid toward public health and workers.

Trump, who has largely been hands off from the negotiations, weighed in late Monday from the White House briefing room, declaring Congress should vote "for the Senate bill as written," dismissing any Democratic proposal.

The president also sounded a note of frustration about the unprecedented modern-day effort to halt the virus's march by essentially shutting down public activities in ways that now threaten the U.S. economy.

Even though Trump's administration recommended Americans curtail activities starting a week ago, the president said: "We cannot let the cure be worse than the problem itself. At the end of the 15-day period, we will make a decision as to which way we want to go."

"Let's go to work," he said. "This country was not built to be shut down. This is not a county that was built for this."

Trump said he may soon allow parts of the nation's economy, in regions less badly hit by the virus, to begin reopening, contradicting the advice of medical and public health experts across the country, if not the globe, to hunker down even more firmly.

The White House team led by Mnuchin worked on Capitol Hill for a fourth straight day of talks as negotiators narrowed on a bipartisan accord.

In the nearly empty building, the virus continued to strike close. Republican Sen. Rand Paul, of Kentucky, who announced he tested positive for coronavirus, is now among five senators under self-quarantine. Several other lawmakers have cycled in and out of isolation. And the husband of Sen. Amy Klobuchar, D-Minn., is in a hospital with pneumonia after testing positive, she said Monday.

With a population watching and waiting, Washington labored under the size and scope of a rescue package - larger than the 2008 bank bailout and 2009 recovery act combined.

Democrats are holding out as they argue the package is tilted toward corporations and should do more to help suddenly jobless workers and health care providers with dire needs.

In particular, Schumer, D-N.Y., wants constraints on the largely Republican-led effort to provide $500 billion for corporations, which Democrats have called a "slush fund." Schumer wants the bill to limit stock buy-backs, CEO pay and layoffs.

Yet, he said, "We're very close to reaching a deal." Even so, another attempt to move the package forward snagged, blocked as Democrats refused to quit negotiating.

Democrats won one 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 would extend to self-employed and so-called gig workers.

However, Republicans complained Democrats were holding out for more labor protections for workers, wanting assurances corporations taking federal aid will commit to retaining their employees.

Pelosi came out with the House Democrats' own sweeping $2.5 trillion bill, which would provide $1,500 directly to the public and $200 billion to the states, as governors are pleading for aid. She urged Senate negotiators "to move closer to the values" in it.

Central to the emerging rescue package is as much as $350 billion for small businesses to keep making payroll while workers are forced to stay home. The package also proposes a one-time rebate of about $1,200 per person, or $3,000 for a family of four, as well as extended unemployment benefits.

Hospitals would get about $110 billion for the expected influx of sick patients, Mnuchin said. However, Democrats are pushing for more health care dollars for the front-line hospitals and workers.