TOPLINE
Treasury Secretary Steven Mnuchin on Tuesday blamed Democrats for refusing to “strike a reasonable deal” on the next coronavirus stimulus bill, shooting down hopes of progress in the ongoing negotiations which remain at a standstill.
The Treasury Secretary was hopeful negotiations could resume later this week.
Alex Wong/Getty Images
KEY FACTS
The Treasury Secretary blasted top Democrats in a CNBC interview, criticizing them for what he called stubborn tactics and a refusal to discuss any “reasonable deal” on the next coronavirus relief package.
Mnuchin’s comments came after multiple outlets reported on Monday evening that Senate Republicans were planning to introduce a “skinny” $1 trillion coronavirus stimulus bill.
Mnuchin and White House chief of staff Mark Meadows have spearheaded efforts to come up with a stimulus plan, but discussions with House Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Chuck Schumer (D-NY) have been stuck in a stalemate.
Republicans favor a smaller relief bill, arguing that it would be more fiscally responsible given the recent improvement in U.S. economic data: “There’s no question that the economic numbers are doing better… as we reopen the economy, we see things are getting better,” Mnuchin reiterated on Tuesday.
Top Democrats, meanwhile, have pushed for a larger, $3 trillion relief package, saying that White House negotiators don’t appreciate the severity of the economic downturn caused by the pandemic.
Despite both Republicans and Democrats accusing each other of stonewalling, Mnuchin suggested that Pelosi might be willing to resume negotiations this week when she reconvenes the House of Representatives to work on legislation to provide more funding for the Postal Service.
Crucial quote
“The good news is despite Congress not acting, because Pelosi and Schumer aren’t willing to sit down and strike a reasonable deal, the president moved forward with the [executive orders] to help people who are still unemployed,” Mnuchin told CNBC.
What to watch for
With the Senate now adjourned until September, optimism is quickly fading and it could take weeks for a deal to be reached. The smaller relief package favored by Republicans is expected to include $300-per-week federal unemployment benefits extended until December 27, according to Politico and The Wall Street Journal. It is also likely to push for another round of small business loans under the Paycheck Protection Program as well as $10 billion in funding for the U.S. Postal Service, though it is unclear whether it would include a second round of stimulus checks.
Tangent
“The president wants us to do more,” Mnuchin said. “He wants us to provide money for kids and jobs, and a second round of the PPP and direct payments are a clear part of that.”
Further reading
Trump Says He’s Ready To Send Out $1,200 Stimulus Checks, Again Blames Democrats For The Delay (Forbes)
Slashing $600 Unemployment Benefits Would Be ‘Absolutely Devastating’ For U.S. Economy (Forbes)
Don’t Expect A Stimulus Deal Until At Least September (Forbes)
Trump Takes Executive Action After Lawmakers Fail To Agree On Stimulus, Fate Of Next Bill Uncertain (Forbes)
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