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US Congress' weekend COVID relief talks hit snag

Sunday, 20 December 2020 6:28 AM [ Last Update: Sunday, 20 December 2020 6:33 AM ]

Sen. Mark Warner (D-VA) speaks alongside a bipartisan group of Democrat and Republican members of Congress as they announce a proposal for a Covid-19 relief bill on Capitol Hill on December 14, 2020 in Washington, DC. (AFP photo)

US lawmakers failed Saturday to overcome final hurdles to a $900 billion coronavirus aid bill for American families and businesses struggling as a result of the economic fallout from the pandemic.

On Friday, President Donald Trump signed into law a resolution passed by the House and the Senate, extending the deadline for Congress to pass a funding bill for another 48 hours.

McConnell: Another stop-gap funding bill may be needed to prevent government shutdown

US Senate Majority Leader Mitch McConnell has said that he hoped lawmakers would reach agreement on a coronavirus relief bill soon.

On Saturday, however, a dispute over Federal Reserve emergency lending authorities caused a breakdown in the negotiations.

GOP Senator Pat Toomey introduced a proposal requiring that Congress eliminate more than $400 billion in Federal Reserve emergency lending powers approved under the CARES Act in March.

"The legislation, my language, that I'm trying to get in this package, reiterates these CARES facilities end on December 31, as Congress intended," Toomey said in a speech on the Senate floor on Saturday.

The administration of Republican President Donald Trump, who insists Democratic Joe Biden did not win the disputed Nov. 3 election, also said it backs the Toomey initiative that would prevent any money from the Treasury’s rainy day fund from being used to restart Fed lending programs after 2020.

Meanwhile, Democrats assert there is still need for such programs, accusing Republicans of allowing the economic outlook to deteriorate ahead of Biden's inauguration.

"The biggest impediment is this late comer to the party which to me is harmful to the economy and is slowing down our being able to get this agreement. It would forever prohibit the president from engaging in exactly what President Obama did at the time of the Great Recession," Speaker Nancy Pelosi told House Democrats in the call on Saturday.

She was referring to lending programs established by the Fed in the wake of the 2008 financial crisis. Ever since, the central bank has been able in emergency situations to lend to any borrower to ensure the proper functioning of financial markets.

Pelosi went on to say that by pushing for such an initiative, Republicans are saying, "we are tying your hands. No matter what comes down the pike, you can't do this."

Senate Minority Leader Chuck Schumer also said it was "time for a conclusion," adding "we are close to an agreement but we need to finalize it."

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