Democrats Prepare New Stimulus Plan in Push to Kickstart Talks

By Madelaine D. Sep 25 2020, 05:41 AM EDT

House Democrats are crafting a new stimulus plan worth $2.4 trillion, hoping that Republicans would be encouraged into reopening negotiations stalled since May.

As House Speaker Nancy Pelosi worked under pressure from moderate Democrats to strike a deal with the White House, she laid the groundwork for action on a stimulus bill.

The new economic stimulus package is worth $2.4 trillion, which is lower than the cost of their previous plan, but still too high to broker a compromise with Republicans.

According to FT, Pelosi asked committee chairs in the lower chamber to prepare the scaled-back plan that includes aid to restaurants, airlines, and small businesses as a basis for new discussions with the White House on a relief package.

Democrats Prepare New Stimulus Plan in Push to Kickstart Talks — Speaker Pelosi Holds Her Weekly News Conference On Capitol Hill WASHINGTON, DC - SEPTEMBER 24: Speaker of the House Nancy Pelosi (D-CA) holds a weekly press conference at the Capitol on September 24, 2020 in Washington, DC. Pelosi paid tribute to Supreme Court Justice Ruth Bader Ginsburg saying the late justice will be the first woman as well as the first Jewish person to lay in state.tomorrow. Liz Lynch

On Thursday, Pelosi told House Democratic leaders in a meeting: "We are still striving for an agreement. If necessary, we can formalize the request by voting on it on the House floor."

The move could lead to a vote as early as next week, as per Politico. The Democrats' move highlights the mounting pressure on Congress to strike a deal that adds new fiscal support into the U.S. economy before the November election, or to at least show voters that lawmakers made an effort to compromise.

The Democrat's new stimulus plan will also include enhanced direct payments to Americans known as stimulus checks, unemployment insurance, and funding for the popular Paycheck Protection Program (PPP) small-business loan program.

The new scaled-back legislation will serve as a basis for the recent talks with the White House. Pelosi directed the Democratic committee chairs to draft the proposal.

House Ways and Means Committee Chairman Richard Neal, D-MA, later confirmed the plan to put together a new bill. Neal said a vote if there will be one, will occur next week before the House leaves for recess.

"I think the contours are already there," Neal said on drafting the smaller package. "I think its now about (the) time frame and things like that."

From the $3.4 trillion proposed by House Democrats in the HEROES Act passed on May 15, the new bill has been a considerable comedown, the IB Times reported. However, Republicans remain opposed to the vast spending and have proposed much smaller packages from Senator Mitch McConnell's "skinny" $500 billion proposals to the $1.3 trillion proposals of a bipartisan group of legislators.

In August, negotiations between Democrats and Republicans collapsed and have languished since. Pelosi's latest action will enable her to push White House Chief of Staff Mark Meadows and Treasury Secretary Steven Mnuchin to boost the administration's $1.3 trillion offer by $1 trillion closer to the new stimulus plan.

Senate Minority Leader Chuck Schumer and Pelosi held talks with Meadows and Mnuchin from late July to early August. The words proved worthless as both sides pushed their core demands.