Just after 8pm ET, the Democrat-controlled House approved a massive, Democrat-proposed $2.2 trillion fiscal stimulus package, in a move cementing the split between the two parties and designed to cast blame on Senate republicans for killing passage of the outsized stimulus after bipartisan negotiations failed to yield the fifth covid agreement.
The vote, which passed 214-207 with no Republican support, effectively precludes any hope that a compromise fiscal stimulus can be passed before the elections even though Speaker Pelosi earlier insisted the vote wouldn’t slam the door on negotiations with the White House on a bill President Donald Trump could sign into law.
After sitting down with Treasury Secretary Steven Mnunchin Wednesday, she spoke with him several times by phone again Thursday, although talks far failed to bridge what’s been a gap of roughly $600 billion dollars between the two sides. Sharp differences also remain on components of coronavirus relief, with the Trump administration rejecting the scale of aid Democrats want for state and local authorities – which would effectively represent a taxpayer-funded bailout for decades of mismanaged pensions – while Pelosi demanded the end of tax breaks she says are devoted to the wealthy.
Pelosi told reporters Thursday evening that she would review documents that Mnuchin had sent her to determine where to go next after several calls during the day, although when one strips away the theatrics, the answer is nowhere. “We are going back and forth with our paper,” she said, underscoring the importance of the language used in any deal.
Pelosi said the House’s vote on its own bill would help present in a more public way what Democrats are unified in “pushing for” in the negotiations. Last month, Republicans in the Senate, where they have a majority, also attempted to pass their own $650 billion “skinny” package – but that in turn was blocked by Democrats.
The bottom line is that unless Senate Republicans agree to state and local bailouts, and they won’t even if Trump demands they do, this likely marks the end of any hopes for a fifth and much needed fiscal stimulus, even as American savings generously built up in the aftermath of the covid lockdowns thanks to trillions in government handouts, are rapidly dwindling…
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