Bipartisan group close to finalizing coronavirus relief deal

WASHINGTON, D.C. — A group of House and Senate lawmakers from both sides of the aisle has fleshed out details of their $908 billion coronavirus relief plan, except for the two thorniest issues: business liability protections and state and local aid.

A six-page summary of the group’s proposal, obtained by CQ Roll Call, notes the group has an “agreement in principle” to provide $160 billion in direct aid to states and localities and indemnify employers in some way from coronavirus-related lawsuits.

The summary does not provide details on the agreements, except to note they are “the basis for good faith negotiations.” Group members said Wednesday morning they were hoping to finalize and release those portions later in the day.

Last week the group released a basic one-page chart of their plan, and members have been meeting behind closed doors to try to come to agreement on details. They’ve broken into subgroups to try to reach deals on the more vexing provisions.

Sen. Angus King, I-Maine, who’s leading the group working on the liability measures with Judiciary Chairman Lindsey Graham, R-S.C., said Wednesday morning they were working to finalize language “in the next few hours.”

Sen. Chris Coons, D-Del., an attorney, said the deal is likely to include a six-month moratorium on coronavirus-related lawsuits to give states time to come up with their own legislation providing for liability protections. For injuries that occurred in 2020, the group would provide businesses, universities and other institutions that could be targeted by lawsuits an “affirmative defense” they can use to counter excessive claims.

Republicans had proposed providing businesses blanket immunity except in cases of gross negligence, but Democrats said that was too narrow and would prevent most claims. The group compromised on the “affirmative defense,” which is expected to give businesses that follow proper health and safety guidelines the ability to get lawsuits dismissed.

It wasn’t immediately clear how the broader Democratic caucus would respond to the liability proposal, or whether Republicans concerned about “bailing out” profligate state and local governments would accept the $160 billion figure.

Senate Majority Whip John Thune, R-S.D., told reporters Wednesday that “having state and local funding in there would be highly problematic” for Republicans, just as liability protections “would complicate it on the Democratic side. Which is why I think it makes a lot of sense to drop them both out.”

The issue of direct aid to households is also gumming up the broader negotiations.

The bipartisan group’s package offers $300 weekly federal supplements to state-based unemployment benefits for four months, but no one-time direct payments to households. A competing $916 billion proposal from Treasury Secretary Steven Mnuchin would provide tax rebates of up to $600 per person instead of added unemployment benefits.

Democrats want both, but Republicans say that costs too much. Some Democrats as well as Republicans say if only one makes it into the package, unemployment benefits are the way to go.

“I think most of our members would rather have an extension of the plussed-up UI benefit than having those checks, because at least those are going to people who don’t have jobs,” Thune said.

Sen. Joe Manchin III, D-W.Va., a leader of the broader bipartisan group, said it “doesn’t make any sense” to provide direct payments instead of unemployment supplements.

“How can anybody say that ‘I’m gonna send another check to people that already have a paycheck and job, and not send anything to the unemployed?’” asked Manchin.

Speaker Nancy Pelosi and Senate Minority Leader Charles E. Schumer called Mnuchin’s offer “progress,” but said scaling back unemployment benefits was “unacceptable.”

They said Mnuchin’s proposal risks undermining the ongoing bipartisan talks, similar to their earlier reaction to Senate Majority Leader Mitch McConnell’s offer to drop both liability provisions and state and local aid.

McConnell on Wednesday criticized the top Democrats for rejecting both approaches. “Two more brush offs in about two hours — more deflection, more delay and more suffering for innocent Americans,” he said.

Sen. John Cornyn, R-Texas, suggested that ultimately the bipartisan group’s efforts, of which he is a part, will be overshadowed by the “big four” congressional leaders making the deal themselves as part of the massive year-end spending package taking shape.

“The reality is we don’t have time to handle this through regular order so this is going to be negotiated by the four corners,” Cornyn said. “It will be part of the (fiscal 2021) omnibus if it’s there at all. So it’s probably not going to be as expansive as many of us would like.”

The House was scheduled to vote on a one-week continuing resolution, which would stave off a partial government shutdown until at least Dec. 18, later on Wednesday.

According to the plan’s summary, the bipartisan House and Senate group would renew an enhanced federal unemployment benefit that expired at the end of July at $300 per week — half of its original $600 amount — for 16 weeks. The benefit would start at the end of December and last into April 2021, according to the summary.

The group also proposes extending all pandemic unemployment insurance programs that expire at the end of December for 16 weeks. Those include benefits for gig workers who don’t qualify for state benefits and people who’ve exhausted their state allotments.

The plan would provide $1 billion for states to upgrade their unemployment systems for technology modernization and fraud prevention.

The largest component in the group’s proposal is $300 billion to renew the Paycheck Protection Program that provided forgivable loans for small businesses to supplement payroll and other fixed costs.

Only small businesses with 300 or fewer employees would be eligible for the second round of loans, compared to companies with 500 or fewer who had access to the first round. The businesses would also have to show they sustained a 30% revenue loss in any quarter of 2020 to qualify.

The proposal would set aside some of the loan funding for businesses with 10 or fewer employees and for small community lenders to issue loans to the small and minority-owned businesses in the networks. Funding would also be provided for independent live venue operators that have been shut down due to stay-at-home orders.

Small 501(c)(6) organizations with 150 or fewer employees that are not lobbying organizations, such as local chambers of commerce, economic development organizations and tourism offices, would become eligible for PPP, according to the summary.

The proposal would also clarify that business expenses paid with PPP loans are tax-deductible.

Other aspects of the group’s plan as outlined in the summary include:

■ $82 billion for education, including K-12 and colleges and universities and a flexible fund for governors, with eligibility for private schools.

■ $35 billion for health care providers, including $7 billion for rural providers.

■ $6 billion for vaccine development and distribution.

■ $9 billion for virus testing and contact tracing.

■ $25 billion in rental assistance to state, local and tribal governments and an eviction moratorium through January; payments would be geared toward lower-income households earning up to 50% of area median income.

■ An extension of student loan forbearance through April 30.

■ An extension of the Payroll Support Program for airlines that expired at the end of September, with funding through March 31.

■ Unspecified funding for public transit systems, Amtrak and the motorcoach and bus industry; last week’s framework chart set aside $45 billion total for transportation needs, including airline relief.

■ A 15% increase in Supplemental Nutrition Assistance Program benefits for four months.

■ $13 billion for farmers, ranchers, growers and rural communities.

■ $10 billion for child care providers.

■ Allow the U.S. Postal Service to request a $10 billion forgivable loan from Treasury.

■ $6.25 billion for broadband connectivity grants.