WASHINGTON: The US Congress resumed negotiations on Saturday on a $1 trillion emergency economic package to help the country deal with the impact of the coronavirus pandemic.

There was some optimism in the US Capitol that Democrats and Republicans could reach a deal, despite their failure to do so Friday, as Senate Majority Leader Mitch McConnell had hoped.

The Senate convened at midday to resume debate, as leaders from the White House and the Democratic-led House of Representatives huddled behind the scenes.

The first procedural vote on the measure was set for Sunday, which could lead to a final vote in the Senate on Monday.

The bill would then have to be approved by the House, before being sent to Republican President Donald Trump for his signature.

McConnell’s proposal includes onetime “recovery rebates” of up to $1,200 for most adults, and hundreds of billions of dollars in loan guarantees to crisis-hit industries, including airlines, and to small businesses.

Democrats have been less than enthusiastic about the package, saying they want more support for workers and families, and more money for unemployment compensation.

Chuck Schumer, the top Democrat in the Senate, said the Republican package was “inadequate” for millions of Americans facing dire straits.

House Speaker Nancy Pelosi said McConnell’s proposal “puts corporations ahead of working people.” “As written, it is a non-starter,” she said in a letter to Democratic colleagues.

The Trump administration also announced a further closing of the nations border, as the US and Mexico agreed to limit crossings to all but essential travel and trade, while the US moved to restrict entry to anyone without documentation.

The White House said a member of Vice President Mike Pences staff had tested positive for the new coronavirus. Pence spokeswoman Katie Miller said the staff member, who is not being identified, did not have close contact either the vice president or Trump.

Unveiled on Thursday, McConnell’s rescue proposal from Republicans builds on Trump’s request for Congress to go big.

The Republican plan proposes $300 billion for small businesses to keep idled workers on payroll and $208 billion in loans to airlines and other industries. It also seeks to relax a just-enacted family and medical leave mandate on small to medium-sized businesses from an earlier rescue package.

It puts McConnell’s imprint on the GOP approach after the Senate leader left earlier negotiations to Pelosi and Mnuchin, which angered some of his GOP senators feeling cut out of the final product.

Keeping paychecks flowing for workers not at work is a top priority for both Democrats and Republicans as jobless claims skyrocket.

But how best to send direct payments to Americans as one-time stipends, ongoing payroll support or unemployment checks is a crucial debate.

Under McConnell’s approach, small businesses with 500 or fewer employees would be able to tap up to $10 million in forgivable loans from the federal government to continue cutting paychecks.

Democrats prefer sending the money to workers via the existing unemployment insurance system. Schumer called it unemployment insurance on steroids.

Both income support approaches have benefits and drawbacks, lawmakers said. Republicans say their plan would keep workers linked to employers, for easy recall once the crisis abates. Democrats argue the unemployment system provides a ready-made distribution channel, though states could also become overwhelmed by the surge of jobless claims.

Published in Dawn, March 22nd, 2020