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Republicans and Democrats Remain Far Apart on Covid-19 Relief

Posted on Nov. 20, 2020

Lawmakers have yet to find a breakthrough on a coronavirus relief package as the government nears a shutdown.

Senate Minority Leader Charles E. Schumer, D-N.Y., provided some optimism on the subject when he told reporters November 19 that discussions on a pandemic relief bill with Senate Majority Leader Mitch McConnell, R-Ky., would take place.

But the good vibes weren't felt on the other side of the Capitol, where House Minority Leader Kevin McCarthy, R-Calif., took aim at House Speaker Nancy Pelosi, D-Calif., for her role in the relief negotiations. “There is one roadblock. There is one big wall that has stopped this the entire time, and it’s Speaker Pelosi,” McCarthy told reporters. 

McCarthy urged 23 Democrats to make good on a promise to support a Republican resolution to force a vote to extend the Paycheck Protection Program. McCarthy said there is $130 billion already allocated to the PPP waiting to be used and that the vote on the resolution could happen immediately.

Republicans have been trying to coax Democrats to join them in passing a discharge petition — a parliamentary procedure that bypasses a committee vote — to extend the PPP and allow borrowers to qualify for a second round of loans.

The process, started by Rep. Jaime Herrera Beutler, R-Wash., incorporates a bill (H.R. 8265) introduced by Rep. Steve Chabot, R-Ohio, to extend and expand the PPP, and one (H.R. 7664) by House Ways and Means Committee member Jackie Walorski, R-Ind., to expand the use of PPP loans to some nonprofit organizations.

Although lawmakers have struggled to pass an overarching bill addressing numerous problems faced by state and local governments during the pandemic, there is consensus that the small business loan program created as part of the Coronavirus Aid, Relief, and Economic Security Act (P.L. 116-136) should be extended. That could be done as a stand-alone measure or added to a year-end omnibus spending package being negotiated to keep the government open beyond December 11. 

Lawmakers could also use the opportunity to address guidance by Treasury that prohibits deducting PPP expenses. Ways and Means Committee Chair Richard E. Neal, D-Mass., said he hopes for a reversal after Treasury doubled down on its position.

Senate Finance Committee Chair Chuck Grassley, R-Iowa, and ranking member Ron Wyden, D-Ore., similarly encouraged Treasury to reconsider its position in a November 19 joint statement. The pair made clear that they would continue efforts “to clarify in any end-of-year legislation the intended relief in the CARES Act.” 

Besides potentially including some form of pandemic relief, the spending bill could extend a list of expiring tax credits. “I think it’s all murky, but it could come together fast,” Neal said. 

The credits, commonly referred to as tax extenders, include the new markets tax credit, work opportunity tax credit, and several energy credits. They are scheduled to expire at the end of the year after they were extended in last year’s spending package.

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