House Speaker Nancy Pelosi defended the delay on passing emergency coronavirus relief funds Thursday, saying Republicans refused to spend much-needed money in other areas.
“What we have on the floor today is the result of — not the time we delayed the legislation — but the time that the Republicans refused to accept the facts that we needed $100 billion for our hospitals and our testing,” Mrs. Pelosi, California Democrat, said on the House floor. “I think it’s really important for people to understand what this fight is about.”
House and Senate Republicans have laid the blame for an additional 4.4 million jobless applications at Democrats’ feet this week because the bipartisan small business paycheck loan program dried up on April 15.
The nearly $500 billion interim relief package — dubbed by some lawmakers as coronavirus 3.5 — passed the Senate on a unanimous voice vote Wednesday evening.
The vast majority of the funds — $310 billion — will go to replenish the small business paycheck protection program that dried up last Friday. Of that, $60 billion will be set aside for small business lenders and community banks.
It will also include funds for an expanded list of programs that Democrats had pushed for over a week of negotiations: $60 billion for small business loans and grants in economic disaster funds, $75 billion for hospitals, and $25 billion for coronavirus testing. At least $11 billion of testing funds will be given to states and tribes to oversee. Up to $1 billion can be used to test the uninsured.
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Initially, Republicans wanted a straight forward extension of $251 billion to refund the small business paycheck protection program (PPP); but Democrats held out. Their counter-proposal offered an additional $120 billion for small business grants and loans, as well as $100 billion for hospitals and testing.
Generally, lawmakers agreed on that all those items needed more funding, but squared off on the order of how Congress should tackle it: all together or in more narrow bills.
The major Democratic priority left out of this latest package was additional funding for state and local governments.
In an interview with radio host Hugh Hewitt, Senate Majority Leader Mitch McConnell said federal assistance to state and local governments needed to be more thoroughly evaluated, noting that many Republicans feel it would be akin to a bailout.
“I would certainly be in favor of allowing states to use the bankruptcy route,” Mr. McConnell said. “It saves some cities. And there’s no good reason for it not to be available. My guess is their first choice would be for the federal government to borrow money from future generations to send it down to them now so they don’t have to do that. That’s not something I’m going to be in favor of.”
Democrats, however, argue the funds are less about trickle-down bureaucracy and more focused on keeping essential emergency workers — including firefighters, and police officers — paid.
On Thursday, they slammed Mr. McConnell for his bankruptcy remarks.
“Unfortunately, they did not want to put the heroes into this bill today as fully as they should by supporting state and local [governments],” Mrs. Pelosi said. “The distinguished leader on the Senate side, Mr. McConnell said, ’I think the states should go bankrupt.’ … Oh really? What made you think that was a good idea?”
• Gabriella Muñoz can be reached at gmunoz@washingtontimes.com.
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