- House Speaker Nancy Pelosi blew up the White House’s $ 1.6 trillion spending plan on Thursday, saying it was not “half-baked.”
- “What they offer is the heel of bread,” Pelosi said in an interview with Bloomberg TV.
- The heavy price of the White House plan could be a gamble, given that many Senate Republicans are opposed to spending large sums of federal money that could be thick on national debt.
- Visit the Business Insider homepage for more stories.
House Speaker Nancy Pelosi tore up the White House $ 1.6 trillion stimulus package on Thursday, saying it could not do enough to address the twin economic and public health crises caused by the pandemic.
“It̵7;s not half the bread. What they offer is the heel of the bread,” Pelosi said in an interview with Bloomberg TV, adding that “it’s not bad to go into a negotiation if you say, ‘I’ll just take the path less resistance. ‘”
The California Democrats have brought a new area of contention between Democrats and the Trump administration: child tax credit, which reduces taxes owed by families with children 17 and under. House Democrats seek to give people with children the option to receive a modest federal monthly payment regardless of their income.
Pelosi told Bloomberg that the White House has excluded all funding for the credit, which is claimed by 40 million families each year.
Earlier in the day, he said he was cautiously hoping to lure in a bigger White House spending deal. Democrats this week unveiled a $ 2.2 trillion spending plan that includes a $ 600 weekly federal unemployment benefit, another wave of $ 1,200 stimulus checks, and state and small aid business.
“We hope we can reach an agreement, because the needs of the American people are very good,” Pelosi told reporters on Capitol Hill. “But there has to be recognition that it takes money to do that.”
White House press secretary Kayleigh McEnany confirmed on Thursday that the administration had passed a $ 1.6 trillion proposal on coronavirus relief negotiations with Democrats. He called it “a great proposal” with more spending than the Republicans released.
But McEnany said Pelosi was “not serious” in his insistence on strong spending. Secretary of Treasury Steven Mnuchin and Pelosi have been in the conversation for five days.
Read more: BlackRock chief investment cuts to why Congress passed the second round of fiscal stimulus ‘seriously’ for markets and economies – and pinpoints which sectors will benefit in any scenario
The White House plan could be a tough sell to Republicans
The heavy price of the White House plan could be a gamble, given that many Senate Republicans are opposed to spending large amounts of federal money that could be thick on national debt.
But pressure has risen on lawmakers to reach an agreement before they postpone next week until after the election. Millions of Americans are out of work and struggling to afford to eat and rent. And many economists have urged Congress to allow additional spending to keep people and businesses afloat.
Both the Democratic-led House and the GOP-controlled Senate must approve a similar law providing assistance and send it to President Donald Trump’s table for it to become law.
Key elements of the White House plan include:
- $ 300 billion for another round of direct payment to taxpayers.
- $ 300 billion for $ 400 weekly federal unemployment benefits until January 1.
- $ 250 billion for assistance to state and local governments.
- $ 175 billion in health spending, coronavirus testing, and monitoring.
- $ 160 billion for small business assistance through the Paycheck Protection Program.
- $ 150 billion for education and assisting with the reopening of the school.
- $ 100 billion for restaurants that are in dire financial straits.
Democrats and the Trump administration have agreed to include stimulus checks in another relief package, as well as providing money to help small businesses and schools.
However, large differences remain. The administration seeks to implement a federal unemployment benefit of $ 200 per week less than Democrats want. And it will provide less federal assistance to states with cash strapped.
Senate Majority Leader Mitch McConnell slammed the Democratic plan on Wednesday, recognizing it as unpopular. “We are very far from an agreement,” McConnell told reporters on Capitol Hill.
Read more: The stimulus conversation continues as deal makers push for another boost in unemployment payments. Here is everything you need to know about the rescue package.