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Published 10:52 IST, August 8th 2020

Dems: 'Disappointing' virus aid talks collapse

A last-ditch effort by Democrats to revive collapsing Capitol Hill talks on vital COVID-19 rescue money ended in disappointment on Friday, making it increasingly likely that Washington gridlock will mean more hardship for millions of people who are losing enhanced jobless benefits and further damage for an economy pummeled by the still-raging coronavirus.

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A last-ditch effort by Democrats to revive collapsing Capitol Hill talks on vital COVID-19 rescue money ended in disappointment on Friday, making it increasingly likely that Washington gridlock will mean more hardship for millions of people who are losing enhanced jobless benefits and further damage for an economy pummeled by the still-raging coronavirus.

“It was a disappointing meeting,” declared top Senate Democrat Chuck Schumer, saying the White House had rejected an offer by House Speaker Nancy Pelosi to curb Democratic demands by about $1 trillion.

He urged the White House to “negotiate with Democrats and meet us in the middle. Don’t say it’s your way or no way.”

With the collapse of the talks, he said President Donald Trump was now likely to issue executive orders on home evictions and on student loan debt.

Friday's session followed a combative meeting on Thursday that, for the first time cast real doubt on the ability of the Trump administration and Democrats on Capitol Hill to come together on a fifth COVID-19 response bill.

Pelosi summoned Mnuchin and Meadows in hopes of breathing life into the negotiations, which have been characterized by frustration and intransigence on both sides.

Earlier in the day, Pelosi said Democrats offered a major concession. They would go down $1 trillion if Republicans come up $1 trillion and meet in the middle.

When Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows refused the offer, Pelosi declared the talks all but dead until Republicans give ground.

"I’ve told them ‘come back when you are ready to give us a higher number,’" she said.

A breakdown in the talks would put at risk more than $100 billion to help reopen schools, a fresh round of $1,200 direct payments to most people and hundreds of billions of dollars for state and local governments to help them avoid furloughing workers and cutting services as tax revenues shrivel.

 

Updated 10:52 IST, August 8th 2020

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