By David Lerman
CQ-Roll Call
WASHINGTON, D.C. — A Republican-drafted coronavirus relief package will include $105 billion to help schools safely reopen, more tax rebate checks to families, a “targeted second round” of small-business loans and liability protection for health care workers, Senate Majority Leader Mitch McConnell said Tuesday.
Outlining the major elements of a GOP proposal that could be unveiled in coming days, the Kentucky Republican made no mention of an extension of expanded unemployment benefits or aid to state and local governments — two top priorities of Democrats.
Nor did McConnell mention a possible deferral of payroll taxes borne by workers, similar to a break companies got in the $2 trillion March aid package, which the Trump administration has been pushing despite GOP misgivings.
Instead, McConnell said the package would center on “kids, jobs and health care” in an attempt to find a “middle ground” between another massive rescue effort and a simple economic stimulus measure.
Helping kids, McConnell said, will require spending $105 billion “so that educators have the resources they need to safely reopen.” That amount would exceed the $70 billion floated by White House chief of staff Mark Meadows over the weekend, and it would be more than the $100 billion that House Democrats included in legislation that chamber passed in May.
Calling for a “shot of adrenaline” to the job market, McConnell said the Republican aid package would reimburse businesses for the costs of coronavirus testing, personal protective equipment, cleaning and any remodeling needed to make their workplaces safe amid the COVID-19 pandemic.
He also called for another round of direct payments “to help American families keep driving our national comeback.” But he did not specify how broadly such payments would be distributed.
A March aid package paid out tax rebate checks of up to $1,200 per adult, with the payment beginning to phase out for annual incomes exceeding about $75,000. McConnell has previously suggested he would like a new round of payments to be targeted toward lower-income people, with a potential income threshold of about $40,000.
McConnell also called for renewing the Paycheck Protection Program, which offers forgivable loans to small businesses that keep most of their workers on the payroll during the pandemic. The program’s application deadline was recently extended to Aug. 8, just as the Senate is set to go on recess.
He said the bill would provide for a “targeted second round” of the program, “with a special eye toward hard-hit businesses.” As of last week, there was more than $130 billion sitting in the Treasury that hadn’t yet been distributed to eligible small businesses.
On health care, the bill will offer “even more resources to the fastest race for a new vaccine in human history, along with diagnostics and testing,” he said. He promised to “protect seniors from a potential spike in premiums” and give more money to hospitals and other health care providers, including for testing.
And in what has been a top priority for the Republican leader for weeks, McConnell again stressed the need for liability protections for health care workers and businesses that want to reopen during the pandemic. “The American people will not see their historic recovery gobbled up by trial lawyers who are itching to follow the pandemic with a second epidemic of frivolous lawsuits,” he said.
Democrats have opposed that push, saying the rights of workers must be protected as they return to their jobs. McConnell said suits could still be filed for “gross negligence,” but that a “safe harbor” would be provided for businesses that follow federal health guidelines.
Meadows, who was on Capitol Hill for meetings with Senate Republicans and the top Democrats in both chambers, said he’s not sure Republicans can reach agreement on their COVID-19 aid proposal Tuesday. “It would be premature to set a timeframe,” he said. “It’s a work in progress. I don’t know that a deadline today would be realistic.”
Meanwhile, Senate Minority Leader Charles E. Schumer faulted Republicans for writing a bill without Democratic input. He took to the Senate floor Tuesday to attack the measure before it is even introduced.
“The Republican proposal appears destined to fall drastically short of what’s required,” Schumer said. “From all indications, the bill will prioritize corporate special interests over workers and Main Street businesses. It won’t provide hazard pay for essential workers. It won’t provide new funding to state, local and tribal governments, or enough investments in communities of color that have been ravaged by the virus.”
House Democrats had sought a nearly $3.5 trillion aid package in May, which McConnell promptly rejected as a “liberal wish list.” He has said the GOP bill would likely cost around $1 trillion.