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Stimulus checks: Pelosi-Schumer in crunch talks with Trump aides

The US economy is in desperate need of further support and as the Republican proposal - the HEALS Act - is negotiated, senior Democrats meet with Mnuchin and Meadows.

U.S. Speaker of the House Nancy Pelosi, joined by Senate Minority Leader Chuck Schumer, speaks to reporters in the U.S. Capitol in Washington, U.S. July 29, 2020. REUTERS/Erin Scott

The top Democrats in Congress resumed talks with two top Trump aides on Saturday to try to reach a deal to pump more money into the U.S. economy to ease the coronavirus' heavy toll, after an essential lifeline for millions of unemployed Americans expired.

Pelosi strives for 'path' towards a relief deal

Congress for the past several months has been unable to reach an accord for a next round of coronavirus relief, in a pandemic that has killed more than 150,000 Americans and brought on the sharpest economic collapse since the Great Depression. U.S. House of Representatives Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer began meeting with Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows shortly after 09:00 EDT (15:00 CEST) at the Capitol.

Pelosi said before the start of the meeting that she continued to oppose a short-term deal. She said on Friday that she rejected an offer by Republican President Donald Trump's administration to continue the $600 payments for another week, saying such a move would only make sense 'if you are on a path' toward a deal. 'We're not,' Pelosi told a news conference.

White House officials took their own hard line, accusing Democrats of refusing Trump's proposals to extend the jobless benefit and a moratorium on home evictions that expired last week.

'What we're seeing is politics as usual from Democrats on Capitol Hill,' Meadows - a former Republican House member - told reporters. The House in May passed a $3 trillion deal that addressed a wide range of coronavirus responses, including more money for testing, for elections and support to financially strapped state and local governments.

Republican HEALS Act on the table

Senate Majority Leader Mitch McConnell on Monday unveiled his own $1 trillion package, which met immediate resistance both from Democrats, who called it too small, and from members of his own party, who said it was too costly.

Trump, scrambling to prop up a struggling U.S. economy as he runs for re-election in November, has been pushing for another bill. In a meeting on Thursday night between top White House officials and congressional Democratic leaders, negotiations focused on an extension of the $600 per week in federal unemployment benefits, which Americans who lost jobs because of the health crisis have been receiving in addition to state jobless payments.

U.S. Treasury Secretary Steven Mnuchin, joined by White House Chief of Staff Mark Meadows.
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U.S. Treasury Secretary Steven Mnuchin, joined by White House Chief of Staff Mark Meadows.ERIN SCOTTREUTERS

According to a person familiar with the closed-door negotiations, the White House proposed continuing the $600 weekly unemployment payment for one week, which Pelosi and Schumer rejected. The White House then proposed reducing the $600 weekly payment to $400 for the next four months. While that was a move toward Democrats' demands, the source said they rejected it as insufficient. The source, who asked not to be identified, said the White House also hinted it could embrace a deal without the legal protections from lawsuits for companies and schools that McConnell has said must be included.

On Thursday, Senate Republicans tried, without success, to pass a bill reducing the jobless benefit to $200 per week.

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