- House Speaker Nancy Pelosi blew up the White House’s $ 1.6 trillion spending plan Thursday, saying it was not even “half a loaf of bread.”
- “What they offer is the heel of bread,” Pelosi said in a TV interview with Bloomberg.
- The White House plan’s big price may be an effort, as many Senate Republicans are opposed to spending large sums of federal money that could swell in government debt.
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House Speaker Nancy Pelosi tore up the White House’s $ 1.6 trillion stimulus package on Thursday, saying it would not do enough to tackle the two economic and public health crises caused by the pandemic.
“This is not half a loaf of bread. What they offer is the heel of the loaf,”
The California Democrat raised a new battleground between Democrats and the Trump administration: tax deductions for children that reduce taxes for families with children under 17. House Democrats seek to give people with children the opportunity to receive a modest monthly federal payment regardless of their income.
Pelosi told Bloomberg that the White House ruled out all funding for the credit, which 40 million families claim each year.
Earlier in the day, she said she was cautiously optimistic about entering into a major spending deal with the White House. Democrats this week rolled out a $ 2.2 trillion spending plan that includes a $ 600 weekly federal unemployment benefit, another wave of $ 1,200 stimulus control and support for states and small businesses.
“We are hopeful that we can reach an agreement because the needs of the American people are so great,” Pelosi told reporters at Capitol Hill. “But there has to be a realization that it takes money to do that.”
White House Press Secretary Kayleigh McEnany confirmed Thursday that the administration made a $ 1.6 trillion proposal in coronavirus relief talks with Democrats. She called it “a good proposal” with more spending than what Republicans had revealed.
But McEnany said Pelosi “was not serious” about his insistence on solid spending. Treasury Secretary Steven Mnuchin and Pelosi have been in negotiations for five days in a row.
Read more: BlackRock’s chief investment officer collapses, prompting Congress to conduct a second round of fiscal stimulus ‘quite seriously’ for markets and the economy – indicating which sectors will benefit in both scenarios
The White House plan could be a tough sale to Republicans
The White House plan’s big prize may be an effort, as many Senate Republicans are opposed to spending large sums of federal money that could swell in government debt.
But pressure has risen on lawmakers to reach an agreement before postponing next week until after the election. Millions of Americans are out of work and struggling to afford food and rent. And many economists have called on Congress to approve additional spending to keep people and businesses afloat.
Both the Democratic-led House and the GOP-controlled Senate must approve identical relief legislation and send it to President Donald Trump’s desk to become law.
Key elements in the White House plan include:
- $ 300 billion to a new round of direct payments to taxpayers.
- $ 300 billion for $ 400 weekly federal unemployment benefits through Jan. 1.
- $ 250 billion for assistance to state and local authorities.
- $ 175 billion in health care, coronavirus testing and contact tracing.
- $ 160 billion to support small businesses through the Paycheck Protection Program.
- $ 150 billion for education and assistance for reopens in school.
- $ 100 billion to restaurants in serious financial difficulties.
Democrats and the Trump administration have agreed to include stimulus control in another aid package as well as provide money to help small businesses and schools.
There are still big differences. The administration is seeking to implement a federal unemployment benefit of $ 200 per person. Week less than what the Democrats want. And it would provide less federal support to cash-strapped states.
Senate Majority Leader Mitch McConnell tore into the Democratic plan Wednesday, characterizing it as outlandish. “We are very, very far apart on a deal,” McConnell told reporters at Capitol Hill.
Read more: Stimulus talks continue as dealmakers push for yet another boost to unemployment benefits. Here’s everything you need to know about the rescue package.