Chances for Quick Stimulus Narrow With Both Democrats, Republicans Refuse to Budge

Another stimulus package is unlikely to materialize before year's end as both Congress' Democrats and Republicans refuse to budge on their past spending demands.

House Speaker Nancy Pelosi and Senator Chuck Schumer stand firm in their $2.4 trillion stimulus plan as a starting point. On other hand, the GOP wants a slimmer measure amounting to $500 billion, reported Business Insider.

Congress' Democratic leaders Pelosi and Schumer argued that the surge in infections was enough reason to go for a more robust spending response. But Senate Majority Leader Mitch McConnell, a Republican leader, said he does not believe the economy needs that level of support.

Congress' Democrats are looking at a price tag that is about five times larger than what the GOP wants.

"The level at which the economy is improving further underscores that we need to do something at about the amount that we put on the floor in September and October," McConnell said.

He added that he thinks Republicans are unwilling to go for a dramatically larger bill than they are demanding.

White House to Sit Out Latest Stimulus Negotiations

On top of the growing battle in Congress, the White House has chosen to step back from stimulus negotiations and left it to McConnell and Pelosi, reported Bloomberg.

Even though the White House will have consultations with GOP lawmakers on the relief bill's details, it's unlikely to lead talks anytime soon, said two sources. They also told Bloomberg that the White House would only take over stimulus negotiations if it has to be completely restarted.

According to a joint statement, former vice president Joe Biden talked with Pelosi and Senate Democratic leader Chuck Schumer on Thursday about dealing with the pandemic.

Biden noted that "urgent need" for Congress to provide resources like state and local aid before the end of the year.

The statement did not name a price for the stimulus bill, but Pelosi and Schumer remained adamant with the price they proposed earlier this year.

With these statements, there is clearly a wide gap between Democrats and Republicans and very low chances of a breakthrough bill before 2021.

Republicans Wary of Mnuchin's Eagerness to Concede in Talks

It is still unknown how Democrats and Republicans could possibly bridge the gap and overcome their divisions on the relief package. Both parties continue to disagree over scope and cost.

Republicans appear to place less reliance on Treasury Secretary Steven Mnuchin to cut a deal with Democrats. As a New York Times article noted, it is possible, the GOP grew wary that Mnuchin had been too eager to concede in the talks.

In early October, House Democrats passed an economic aid bill, which included $1,200 in direct payments, $600 federal unemployment benefits, state and local government aids, and health and education funding. But negotiations, which took months, stalled before the presidential election.

President Donald Trump expressed support for a larger price tag of the stimulus, but he hasn't given any public comment on the matter since Election Day.