As White House pushes ‘skinny’ COVID-19 bill, Democrat sees September action

WASHINGTON (Reuters) – The White House on Wednesday pushed for Congress to take up a narrow coronavirus economic relief bill that Democrats have long rejected, while a leading Senate Democrat said real action may come soon after the Sept. 7 U.S. Labor Day holiday.

With the breakdown of talks between the White House and top congressional Democrats now in its 12th day, Senate Republicans are floating a “skinny” version of the $1 trillion bill proposed by Senate Majority Leader Mitch McConnell for a possible vote in the Republican-led chamber.

That bill ran into immediate opposition from both Democrats and McConnell’s own Republicans when he unveiled it late last month.

White House Chief of Staff Mark Meadows called on Democrats to use Saturday’s vote on U.S. Postal Service legislation in the House of Representatives as a vehicle for coronavirus relief including stimulus checks for individuals and funding for personal protective equipment and schools.

“I think the outlook for a skinny deal is better than it’s ever been and yet we are still not there,” Meadows told reporters. “If Speaker (Nancy) Pelosi moves forward a single bill on postal … let’s add in the things we can agree upon.”

But leading Democrats have flatly rejected White House and Republican calls for narrow legislation, saying Americans need broad legislation and accusing Republicans of failing to grasp the severity of the crisis.

House Democratic leaders are resisting calls by some centrist Democrats, including Representative Derek Kilmer, to hold a separate vote Saturday on extending federal unemployment benefits.

“Saturday focus is postal,” a senior Democratic aide said, adding that there’s “still more consensus building in (the) caucus to be done.”

Democratic Senator Tim Kaine said that he does not expect the White House to get serious about negotiations until after next week’s Republican presidential election convention, where he expects Republicans to tout President Donald Trump’s executive orders on coronavirus relief.

“Once we get out of the Republican convention, the week before Labor Day, you’re going to see serious negotiations restart. And that means we could do something possibly right after Labor Day, when we return,” Kaine said in an online interview with Politico.

The Senate is due to return from recess on Sept. 8 and the House on Sept. 14.

(Reporting by David Morgan and Susan Cornwell, additional reporting by Jan Wolfe; Editing by Scott Malone and Grant McCool)

Pelosi: Democrats willing to cut COVID-19 bill in half to get a deal

WASHINGTON (Reuters) – U.S. House of Representatives Speaker Nancy Pelosi said on Tuesday that Democrats in Congress are willing to cut their coronavirus relief bill in half to get an agreement on new legislation with the White House and Republicans.

“We have to try to come to that agreement now,” Pelosi said in an online interview with Politico. “We’re willing to cut our bill in half to meet the needs right now. We’ll take it up again in January. We’ll see them again in January. But for now, we can cut the bill in half.”

But her remarks did not signal a new position for Democrats, according to a senior aide.

The Democratic-led House passed legislation with over $3 trillion in relief in May. This month, Democrats offered to reduce that sum by $1 trillion, but the White House rejected it.

The two sides remain about $2 trillion apart, with wide gaps on funding for schools, aid to state and local governments, and enhanced unemployment benefits.

(Reporting by David Morgan; Editing by Chris Reese and Chizu Nomiyama)

Kudlow sees single-digit unemployment in August, ‘V’ recovery

(Reuters) – White House economic adviser Larry Kudlow on Thursday said he expects the U.S. unemployment rate to return to single-digit levels as early as this month and growth in the third quarter should be 20% or more as the economy recovers from the recession triggered by the coronavirus pandemic.

“The key point that I would make is the economy is rebounding, it looks like a V-shaped recovery and the recent news now is even better than it was a month ago,” Kudlow said in a virtual appearance at a conference hosted by the Council of the Americas.

(Reporting By Jonnelle Marte and Dan Burns; Editing by Chizu Nomiyama)

White House, Democrats show no sign of budging on U.S. coronavirus aid

By Susan Cornwell and Susan Heavey

WASHINGTON (Reuters) – A breakdown in talks between the White House and top Democrats in Congress over how to help tens of millions of Americans suffering in the coronavirus pandemic entered a fifth day on Wednesday, with neither side ready to resume negotiations.

U.S. Treasury Secretary Steven Mnuchin said there may be no deal to reach with House of Representatives Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer, with more than 5.16 million COVID-19 cases in the United States.

Pelosi described the two sides as “miles apart” with a “chasm” between them.

The global pandemic has taken a particularly heavy toll on the United States, where it has killed more than 164,000 people, more than any other country, and made tens of millions of workers jobless, who have now seen a further hit after $600 per week in additional federal unemployment benefits expired last month.

Congress has already approved about $3 trillion in assistance for families, hospitals, healthcare workers, state and local governments, vaccine research and testing.

Talks on a new package broke down last Friday after Democrats offered to reduce their demand for more than $3 trillion in additional aid by about $1 trillion, if the White House agreed to come up by a similar amount from an initial $1 trillion Republican proposal.

Sticking points include the size of an extended unemployment benefit, aid to state and local governments, money for schools to reopen and other issues.

Asked if deal was still possible, Mnuchin told Fox Business Network: “I can’t speculate. If the Democrats are willing to be reasonable, there’s a compromise. If the Democrats are focused on politics and don’t want to do anything that’s going to succeed for the president, there won’t be a deal.”

But Pelosi reiterated Democratic calls for the White House to “meet in the middle.”

“Until they’re ready to do that, it’s no use sitting in a room and letting them tell us that states should go bankrupt,” she told MSNBC. “As a practical matter, they’re going to have to come to the table.”

Senate Majority Leader Mitch McConnell, who did not join any of the negotiating sessions, blamed Pelosi and Schumer for the ongoing impasse.

“Republicans wanted to reach agreement on all these issues where we could find common ground and fight over the last few issues later.” McConnell said on the Senate floor.

“But the speaker and the Democratic leader say nothing can move unless very one of these unrelated far-left items tags along.”

A Reuters/Ipsos poll released on Wednesday found that Americans divide blame pretty evenly between Democrats and Republicans.

(Reporting by Susan Cornwell and Susan Heavey; Writing by David Morgan; Editing by Toby Chopra, Chizu Nomiyama and Jonathan Oatis)

Democrats offer to cut $1 trillion from coronavirus plan, White House says no

By Richard Cowan and David Morgan

WASHINGTON (Reuters) – Democrats in Congress said on Friday they had offered to reduce a proposed coronavirus aid package by a trillion dollars if Republicans would add a trillion to their counter-offer, but the idea was flatly rejected by Donald Trump’s White House.

House Speaker Nancy Pelosi disclosed the offer as she and Senate Democratic Leader Chuck Schumer prepared to meet White House negotiators again on Friday afternoon.

Treasury Secretary Steven Mnuchin, one of the White House negotiators, rejected Pelosi’s proposal out of hand, telling reporters, “that’s a non-starter.”

After nearly two weeks of talks that have failed to make substantial progress, the Republican president has threatened to pull his negotiators out and instead issue executive orders to address the human and economic toll of a crisis that has killed more than 160,000 Americans and thrown tens of millions of people out of work.

It was unclear how much any president could do by executive order. At a news conference, Schumer said the president could not order any new money spent – as that is the power of Congress – but could only defer costs until they were eventually paid.

Democrats have advocated for a $3 trillion-plus economic aid program, while leading Republicans have proposed about a third of that.

“Yesterday I offered to them, we’ll take down a trillion if you add a trillion in,” Pelosi said. “They said absolutely not.”

She said she would make the offer again at an afternoon negotiating session with Mnuchin and White House Chief of Staff Mark Meadows. “We’ve got a responsibility to find common ground,” Pelosi said.

Pelosi said the proposed $1 trillion cut in Democrats’ plan would mean the aid would run out sooner.

Schumer said the White House would have to compromise with Democrats, because they need Democratic votes to get anything passed by Congress. “They can’t just say no,” he said.

“Their other choice is to do some weak insufficient executive orders that wont do the job for the people we want to help,” Schumer said.

Pelosi said Democrats want the biggest possible number for reviving an expired federal payment to the unemployed that had been $600 a week. Renewing that benefit has been a leading Democratic demand.

The White House at one point suggested $400 a week in federal benefits for the unemployed, but Democrats rejected it and have refused to do a separate deal on that, saying they wanted a comprehensive package that also included money for state and local government and other matters.

Congress passed more than $3 trillion in relief legislation early in the pandemic. Senate Majority Leader Mitch McConnell has said a new boost is needed to help the U.S. economy, but some of his fellow Republicans oppose doing anything more.

Pelosi and Schumer have pushed for a comprehensive package of assistance for the unemployed, the poor, hospitals, schools, and state and local governments.

(Additional reporting by Susan Heavey, Lisa Lambert and David Morgan; Writing by Susan Cornwell; Editing by Scott Malone and Howard Goller)

Trump executive order to boost U.S. drug manufacturing: Navarro

WASHINGTON (Reuters) – U.S. President Donald Trump on Thursday will sign an executive order aimed at boosting American drug manufacturing and lowering drug prices, White House trade adviser Peter Navarro said as the administration continues to grapple with the novel coronavirus outbreak.

The order, first reported by USA Today, “establishes Buy American rules for government agencies, strips away regulatory barriers to domestic pharmaceutical manufacturing, and catalyzes the Advanced Manufacturing technologies needed to keep drug prices low,” Navarro tweeted.

It will allow the Department of Health and Human Services to use a 1950 law to procure certain “essential” medicines and other equipment from U.S. companies, although it does not list specific products, USA Today reported, citing the White House.

The order also directs the U.S. Food and Drug Administration and the Environmental Protection Agency to give priority status to U.S. drug ingredient manufacturers during their regulatory review process, and addresses counterfeit medicines sold by third-party sellers, according to the report.

So far, more than 157,000 people in the United States have died from COVID-19 – about 1,000 each day – with 4.8 million known COVID-19 cases.

Trump is expected to sign the order later on Thursday, USA Today said. The Republican president is scheduled to travel to Ohio to visit a Whirlpool manufacturing plant and hold a fundraiser for his re-election campaign before traveling to his New Jersey golf resort for the weekend, according to the White House.

Representatives for the White House did not immediately respond to a request for comment.

(Reporting by Susan Heavey; editing by Jonathan Oatis)

Stacey Abrams warns not to expect a U.S. presidential winner on Election Night

By Alessandra Galloni

(Reuters) – Voting rights advocate Stacey Abrams warned Americans on Tuesday not to expect to learn the winner of the White House on Election Night Nov. 3, as problems delivering and counting an expected flood of mail-in ballots prompted by the coronavirus pandemic could delay the result and draw a flurry of legal challenges.

“The sheer volume of people who will be voting by mail is going to preclude the ability to count those ballots and adjudicate the outcome of the election by 11 p.m. on Election Night,” Abrams, a Democrat and former leader in Georgia’s state legislature, said in a virtual Reuters Newsmaker event.

The public health crisis has drawn litigation in dozens of states from both major parties. Democrats and voting rights groups have pushed voting by mail as a safer option to cast ballots during the pandemic, while President Donald Trump and his allies have proclaimed without evidence that expanded voting by mail will lead to widespread fraud.

Abrams, once considered a possible running mate for Democratic presidential candidate Joe Biden, said cuts in Postal Service overtime imposed by Louis DeJoy, a new Trump-appointed postmaster general, may cause delays in service as voting by mail ramps up.

“And so my admonition is that we have to approach Nov. 3 with patience,” Abrams said.

A Postal Service spokesman said last week the agency was taking steps to increase operational efficiency and ensure prompt and reliable service.

Several primaries this year experienced long delays in counting and naming winners because of the mail-in ballots. Ballots from New York’s June 23 primary are still being counted in some undecided races, including a congressional contest.

Abrams said states hurt by the economic collapse lack the resources to handle a deluge of mail-in ballots, and are going to need to determine whose ballot should be questioned and who needs to provide additional information.

“But we also can’t ignore that the president has put in place a postmaster general who is slowing down the essential delivery of mail… We know that’s going to lead to a number of legal challenges,” Abrams said.

Abrams, 46, gained national prominence after narrowly losing her 2018 bid in Georgia to become the country’s first Black female governor. She accused Republican opponent Brian Kemp of voter suppression after he refused to resign as the state’s top elections officer while campaigning for governor.

Abrams, who later formed a voting rights group, Fair Fight, called on Trump and other Republicans to fund more than $3 billion in assistance to state election officials in the coronavirus relief bill being negotiated in the U.S. Senate.

Trump, who trails Biden in opinion polls, has raised a series of questions about the integrity of the election. Last week he suggested delaying the election due to the likelihood of fraud, though he does not have the authority to do so.

‘VOTER SUPPRESSION’ THE ISSUE

Election experts say voter fraud of any kind, including incidents related to mail-in ballots, is extremely rare.

“Voter fraud is not the issue. Voter suppression is the issue,” Abrams said.

She said the election funding would help state officials deal with an expected crush of mail-in ballots, as well as provide adequate polling sites for in-person Election Day voting to resolve some of the problems seen in recent primaries in Wisconsin, Georgia and elsewhere.

“The United States knows how to run elections, we just have to agree to do it properly,” she said. “Our bottom line is we have to have a full toolbox of methods of voting.”

Asked whether she had been interviewed by the Biden campaign as a potential running mate, Abrams declined to comment, referring questions on the process to the campaign. But she said she feels qualified for the job and would serve if Biden asked.

Her chances at the spot have faded in recent months as other candidates emerged as more likely selections, according to conversations with Democratic officials and Biden allies. Biden is expected to announce his running mate next week, ahead of the Democratic National Convention.

Abrams said Black voters were motivated to defeat Trump in November. They became a focus in the campaign after the racial and social justice protests in American streets sparked by the death of George Floyd, a Black man, under the knee of a white police officer.

The first dip in Black voter turnout in 20 years contributed to Democrat Hillary Clinton’s upset loss to Trump four years ago.

“Even if people don’t necessarily feel enthusiastic about the person that is Joe Biden, they are enthusiastic about the policies that are Joe Biden, and that’s what I think is going to matter in November,” Abrams said.

(Reporting by Alessandra Galloni, Joseph Ax and Colleen Jenkins; Writing by John Whitesides; Editing by Soyoung Kim and Howard Goller)

Congressional Democrats, White House set new round of coronavirus aid talks

By Patricia Zengerle

WASHINGTON (Reuters) – Top White House officials and Democratic leaders in the U.S. Congress will try again on Tuesday to narrow gaping differences over a fifth major coronavirus relief bill to help stimulate the economy and possibly provide new aid to the unemployed.

The two sides have reported some progress in recent days. But they remain far apart on a range of issues including unemployment benefits for workers made jobless by the epidemic, as well as liability protections for businesses and funding for schools, state and local governments and election security.

Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows were due to meet with Senate Republicans at a midday policy lunch, before resuming negotiations with House of Representatives Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer at 3:30 p.m. EDT (1930 GMT).

Federal Reserve officials are urging Congress and the White House to help the struggling U.S. economy. Tens of millions of Americans have lost their jobs during the crisis.

Congress passed more than $3 trillion in relief legislation early in the epidemic. But lawmakers missed a deadline last week to extend the $600 per week in enhanced unemployment payments that have played a key role in propping up the U.S. economy.

Democrats are pressing for another $3 trillion that would retain the $600 benefit and add nearly $1 trillion in assistance for state and local governments.

Senate Republicans, who have not taken part in the White House talks with Democrats, have proposed a $1 trillion package that would slash the unemployment payment to $200 a week and eventually move to 70% of wages.

Republicans say the $600 benefit – which is on top of state unemployment payments – discourages people from taking lower-paying jobs. A Fed official on Monday said there was little evidence to support that view.

Differences also remain on whether to extend a moratorium on housing evictions and Democrats’ demand for around $1 trillion in aid to state and local governments suffering revenue shortfalls as a result of the epidemic.

(Reporting by Patricia Zengerle; Writing by David Morgan and Richard Cowan; Editing by Scott Malone, Sam Holmes and Paul Simao)

U.S. COVID-19 aid bill talks ongoing as jobless benefit nears end

By Susan Heavey

WASHINGTON (Reuters) – Negotiations over another coronavirus relief bill continue, the No. 2 Democrat in the U.S. House of Representatives said as a federal jobless benefit was set to expire on Friday with no sign of a deal between the White House and Democrats.

“We’re going to be negotiating every minute that is possible,” despite the Republican-led Senate’s adjournment for the weekend, House Majority Leader Steny Hoyer told MSNBC in an interview.

Lawmakers and the White House are at odds over efforts to further shore up the economy and manage the novel coronavirus pandemic that has left tens of millions of Americans out of work and killed at least 152,384 people in the United States.

In a meeting on Thursday night between top White House officials and congressional Democratic leaders, negotiations focused on an extension of the expiring unemployment benefit.

Senate Majority Leader Mitch McConnell sent senators home for the weekend without reaching a deal to extend the extra $600 per week unemployment benefits many received amid the outbreak.

According to a person familiar with the closed-door negotiations, the White House proposed reducing the $600 weekly payment to $400 for the next four months. While that was a move toward the demands of House Speaker Nancy Pelosi and Senate Democratic Leader Chuck Schumer, the source said they rejected it as insufficient.

On Thursday, Senate Republicans tried, without success, to pass a bill reducing the jobless benefit to $200 per week.

For weeks, McConnell has said that any deal with Democrats would require a shield for companies and schools from liability lawsuits as they reopen during the pandemic.

The source, who asked not to be identified, said the White House hinted that it could embrace a deal without that provision.

Besides the $600 “enhanced” payment, Democrats are seeking a wide-ranging economic stimulus bill that would include about $1 trillion in aid to state and local governments experiencing plunging revenues during the economic downturn.

In mid-May, the Democratic-controlled House passed a $3 trillion bill that the Republican Senate has ignored.

“We’re here, we’re on the phone. We will be negotiating with those who want to get to a reasonable place,” Hoyer told MSNBC.

More details on the White House position may emerge when Trump’s spokeswoman Kayleigh McEnany gives a news briefing scheduled for 10:30 a.m. EDT (1430 GMT). Pelosi is also scheduled to talk to reporters at 10:45 a.m. (1445 GMT).

Trump national security adviser O’Brien tests positive for coronavirus

By Steve Holland

WASHINGTON (Reuters) – U.S. national security adviser, Robert O’Brien, has become the highest ranking official in President Donald Trump’s inner circle to test positive for the coronavirus.

Announcing the infection on Monday, the White House said in a statement there was no risk of exposure to Trump or Vice President Mike Pence.

The announcement caught some White House staff off guard, as there had not been an internal memo about it, one source said. Because of the regular testing regimen, White House officials do not reliably wear masks while working in the West Wing.

An administration official said O’Brien had not had contact with the president in several days. The NSC did not immediately respond to questions about O’Brien.

The White House statement said: “He (O’Brien) has mild symptoms and has been self-isolating and working from a secure location off site. There is no risk of exposure to the president or the vice president. The work of the National Security Council continues uninterrupted.”

O’Brien, who took over as national security adviser from John Bolton last September, had traveled to Paris in mid-July to represent the United States at Bastille Day ceremonies. He met French President Emmanuel Macron while there.

The virus has been disruptive for Trump, who last week was forced to cancel plans for the Republican convention in Jacksonville, Florida, where he was to be formally nominated for a second term.

A U.S. military member who works at the White House as a valet tested positive for coronavirus in May as did Pence’s press secretary.

(Reporting by Steve Holland and Alexandra Alper; Writing by Susan Heavey and Lisa Lambert; Editing by Chris Reese and Howard Goller)