After passing a nearly $500 billion relief package with overwhelming bipartisan support, lawmakers in Washington retrenched along party lines to battle over whether to move forward with a “phase four” coronavirus economic rescue package.
House Speaker Nancy Pelosi dared Republicans to refuse to do another bill as her Democratic Party ramped up demands for massive federal spending to help state and local governments facing a budget crunch because of the economic shutdown.
She told governors clamoring for help not to worry.
“Just calm down,” Mrs. Pelosi, California Democrat, said Sunday on CNN’s “State of the Union.” “We will have state and local, and we will have it in a very significant way.”
Congress included about $150 billion for states and localities in an earlier $2.2 trillion rescue package but the money had to be for expenditures directly tied to the outbreak. The Democrats’ demands for more state money was left out of the most recent bill, which brought the total price tag for the federal government’s coronavirus rescue spending to nearly $3 trillion.
“They should be impatient. Their impatience should help us get an even bigger number,” Mrs. Pelosi said. “As I say to members, judge it for what it does — don’t criticize it for what it doesn’t, because we have a plan for that.”
Treasury Secretary Steven T. Mnuchin left open the possibility that additional funding for states and localities could be part of the next package.
“This will be something that both the Senate and the House debate,” Mr. Mnuchin said on “Fox News Sunday.” “This is something we’ll consider, but our focus right now is really on execution.”
Still, Republicans don’t want to rush into more spending.
Funding to shore up state and local budgets decimated by the economic shutdown is only one of the Democrats’ asks for a phase four bill.
They also want stronger workplace protections for essential workers, vote-by-mail procedures and spending on infrastructure projects.
In early April, Mrs. Pelosi estimated $2 billion to $4 billion to “democratize our whole system” with new federal workplace regulations.
Republicans have repeatedly pushed back against the proposal, arguing that vote-by-mail is too vulnerable to voter fraud and cautioning against the federalization of what always has been a state-level decision.
“Republicans stand ready to work across the aisle to support the individuals and institutions that will need more help in the fight against the virus,” said House Minority Leader Kevin McCarthy, California Republican. “But the American people cannot afford the distraction of continued attempts to force partisan objectives into our response.”
The infrastructure portion is based on the five-year, $760 billion plan Democrats unveiled in January, which would include: $329 billion for roads and bridges, $55 billion for passenger rail, $30 billion for airport renovations, $50.5 billion for wastewater projects, $86 billion for expanding broadband to rural areas and urban deserts, and $12 billion for an updated 911 system.
Infrastructure is likely the Democrats’ only major priority to garner bipartisan traction on Capitol Hill. Earlier this month, Mr. Trump called for a $2 trillion infrastructure plan on the heels on the $2.2 trillion coronavirus rescue package.
Mr. McConnell, however, announced he doesn’t plan on the Senate passing any more large stimulus packages until Congress is back in session.
Opposition to more stimulus spending also is growing among Congress’ deficit hawks.
The Congressional Budget Office estimated that the federal debt will top 100% of GDP for the first time since World War II, largely due to the economic catastrophe that followed in the wake of the coronavirus outbreak.
The federal deficit tripled its initial estimate of $1 trillion before the virus hit, and will now reach roughly $3.7 trillion.
Last week, Mrs. Pelosi said she was unsure whether Congress would return to regular session by May 4. But she said Democrats want to move quickly on phase four regardless of Republican resistance.
“Is this the same Mitch McConnell who let an almost $2 trillion tax break … without saying a word about what the deficit was?” Mrs. Pelosi said. “Anti-governance, anti-science. That’s who they are.”
• Gabriella Muñoz can be reached at gmunoz@washingtontimes.com.
• David Sherfinski can be reached at dsherfinski@washingtontimes.com.
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