A top Republican urged House and Senate Democrats to drop their demands to double a $250 billion emergency spending package to bail out small businesses that GOP lawmakers hoped to pass this week.
Sen. John Cornyn, a Texas Republican and member of the Senate GOP leadership, issued a brief statement in response to an announcement by House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer that they want the package to include an extra $250 billion in spending in addition to a 15% increase in food stamp benefits.
“Senate Democrats should drop their shameful threat to block this funding immediately. Our small businesses desperately need help — now,” Cornyn said.
The demand from Democrats threatens Senate Majority Leader Mitch McConnell’s plan to try to pass the $250 billion small business relief package Thursday by unanimous consent, which would not require a vote or debate. Congress is adjourned until at least April 20 due to the coronavirus.
McConnell, a Kentucky Republican, received the request from Treasury Secretary Steven Mnuchin, who said a $350 billion fund for small businesses is running out of money.
McConnell needs cooperation from Democrats in the Senate and House to clear the spending bill for President Trump’s signature. Any lawmaker can block unanimous consent.
On Wednesday morning, Democrats announced their counteroffer, which includes an additional $100 billion for hospitals and other healthcare facilities, $150 billion to bail out struggling state and local governments, and a 15% boost in food stamp benefits.
“The heartbreaking acceleration of the coronavirus crisis demands bold, urgent, and ongoing action from Congress to protect Americans’ lives and livelihoods,” Pelosi and Schumer said in a joint statement Wednesday. “As Democrats have said since Day One, Congress must provide additional relief for small businesses and families, building on the strong down payment made in the bipartisan CARES Act.”
Trump signed the CARES Act on March 28. It included $350 billion for small businesses to stay in operation and avoid laying off employees. The program is running out of money, and Mnuchin has asked Congress to pass an additional $250 billion quickly.
In addition to the extra money, Schumer and Pelosi want half of the $250 billion Mnuchin is seeking “channeled through community-based financial institutions that serve farmers, family, women, minority and veteran-owned small businesses and nonprofits in rural, tribal, suburban and urban communities across our country, and improvements to ensure all eligible small businesses can access this critical funding and are not turned away by banks.”
Pelosi and Schumer said after Congress passes the additional $500 billion and the food stamp increase, Congress must begin drawing a larger economic relief measure “that will extend and expand the bipartisan CARES Act to meet the needs of the American people.” They added, “CARES 2 must provide transformational relief as the American people weather this assault on their lives and livelihoods.”
