WASHINGTON – Senior lawmakers reached a compromise on the Federal Reserve’s emergency lending powers late Saturday night, breaking a major hurdle that, according to multiple sources, prevented Congress from finalizing a $ 900 billion coronavirus aid package earlier this week .
A last-minute roadblock came on Friday when the Democrats accused Republicans, namely Pennsylvania Senator Pat Toomey, of attempting to incriminate the future Biden administration by using the emergency credit capabilities created by the CARES Act cut off the Federal Reserve to protect the already battered economy.
“After the Democrats approve a version of Sen. Toomey’s key language, we can begin finalizing the rest of the package to provide much-needed aid to families, workers and businesses,” said a spokesman for Senate Majority Leader Mitch McConnell NBC News.
The compromise language is currently being finalized and all open items are expected to be worked out overnight, according to two aides, according to two aides.
A Toomey spokesman called the deal an “unqualified victory for taxpayers”.
“Senate Republicans have achieved all four of our goals for the CARES Act Federal Reserve loan programs,” said Toomey spokesman Steve Kelly.
“This agreement terminates unused CARES Act funds of more than $ 429 billion. To terminate the CARES Act credit facilities for good by December 31, 2020, prevent them from restarting, and prohibit their reproduction without the approval of Congress. This deal will preserve the independence of the Fed and prevent Democrats from hijacking these programs for political and social purposes, “added Kelly.
congress leader chose one frame Mid-week that should include a $ 300 unemployment bonus, a new round of direct payments that should include small business funding and cash to distribute Covid19 vaccinations.
The House had already recommended voting at 1 p.m. on Sunday.
“We’re getting very close. Close by, ”said Chuck Schumer, minority leader, DN.Y., across from Capitol Hill Pool late Saturday.
He said it “looks like we can pass a Covid-19 relief bill in both chambers” “if things continue on this path and nothing stands in the way”.
The negotiations come after months of bouts and beginnings of unsuccessful talks that resulted in violations of various provisions of the CARES Act, including the weekly unemployment bonus of $ 600 per week, adding to the suffering of millions of Americans across the country who have struggled to make ends meet meeting.
The agreement was likely to be achieved However, a roadblock encountered earlier this week after some Republicans, led by Senator Pat Toomey, R-Pa., Called for an end to Federal Reserve authorities on emergency loans. Democrats pushed back, accusing the GOP of trying to sabotage the economy overseen by new President Joe Biden.
The two parties had long argued over price and politics, but negotiations have been kicked off for the past few weeks by a non-partisan group of moderate senators and House members known as the Problem Solvers Caucus, who have quietly started informal discussions in order to create a workable framework.
Their talks resulted in an agreement on a $ 748 billion proposal that will form the basis for negotiations between House Speaker Nancy Pelosi, D-Calif., Senate Majority Leader Mitch McConnell, R-Ky. , Senate Minority Leader Chuck Schumer, DN.Y., and Kevin McCarthy, House Minority Chairman, R-Calif., And the Trump administration.
Alexandra Moe and Sahil Kapur reported from Washington and Alicia Victoria Lozano from Los Angeles.