Congressional Democrats are seeking changes to a major economic relief package scheduled for a 3 p.m. procedural vote in the Senate.
A Senate aide familiar with the text of the GOP-drafted bill said Democrats made several changes to the legislation ahead of the vote. The bill, so far, provides major economic aid and health funding in response to the coronavirus. The deal includes direct cash payments to individuals, $350 billion in aid to small businesses, a $110 billion infusion for hospitals and medical facilities, $500 billion in loans to big industries, and an overall $4 trillion in available liquidity for the Treasury secretary to loan money to businesses to help them survive the economic slowdown.
Democrats are not ready to agree to the deal, a person familiar with the text of the legislation told the Washington Examiner.
According to the aide, the bill does not have enough worker protections that would keep them from getting fired during the economic slowdown caused by the coronavirus outbreak. The bill includes hundreds of billions of dollars in grants and loans for businesses intended to keep them from closing and laying off workers.
“The language says corporations must keep employees ‘to the extent possible,’ which means they can keep the bailout money and still fire workers,” the aide said.
Democrats want to offer small businesses loan forgiveness if 90% or more employees are retained.
Democrats also seek additional “restraints” on how the Treasury can use liquidity to help industries hurt by the economic slowdown. On Fox News Sunday, Treasury Secretary Steven Mnuchin said the federal government would overall be able to lever $4 trillion to help businesses for up to 120 days.
Democrats say the decision to help businesses is up to Mnuchin, who, they argue, could “give money to Trump properties.”
Democrats want more money for hospitals and medical facilities. They reject the current $110 billion included in the bill, pointing out the money to aid big business has grown from about $200 billion to $500 billion.
Democrats want stronger restrictions to prevent big industries such as the airlines from engaging in stock buybacks and want to extend the bill’s two-year limit on boosting executive pay.
Finally, Democrats, siding with the unions, want forgivable loans, or grants, provided to the airlines, which would prevent “tens of thousands of layoffs” in the industry.
The top congressional leaders in both parties are scheduled to meet in the Capitol with Mnuchin later this morning.
