White House seeks limited COVID-19 relief bill, promises further talks on broader stimulus

The Trump administration on Sunday (Oct 11) called on Congress to pass a stripped-down coronavirus relief bill using leftover funds from an expired small-business loan program, as negotiations on a broader package ran into resistance.

The administration proposal, which Democrats dismissed as inadequate, was the most recent twist in on-again, off-again talks to make an effort to secure more stimulus, as the economy struggles to recuperate from coronavirus-related shutdowns that threw an incredible number of Americans out of work.

In a letter to lawmakers, Treasury Secretary Steven Mnuchin and White House Chief of State Mark Meadows said they might continue to speak to Senate Democratic leader Chuck Schumer and House of Representatives Speaker Nancy Pelosi to attempt to reach agreement on a thorough bill.

But they said Congress should "immediately vote" on legislation to permit the utilization of the unused Paycheck Protection Program funds, which total around US$130 billion.

"The all or nothing approach is an unacceptable response to the American people," they wrote.

A spokesman for Pelosi, the lead Democratic negotiator, didn't immediately respond to a obtain comment.

Representative Nita Lowey, the Democratic chairwoman of the home Appropriations Committee, rejected the administration's offer in a statement later on Sunday as "woefully inadequate".

"We are able to only reopen our economy and set the building blocks for a solid recovery if we support state and local governments on the frontline of the crisis," Lowey said in a statement.

White House spokesman Brian Morgenstern told reporters the unused funds will be used to reopen the Payroll Protection Program, which expired earlier this year, to "allow businesses to continue to use it to keep their workers employed".

President Donald Trump on Friday offered a US$1.8 trillion coronavirus relief package in talks with Pelosi after urging his team on Twitter to "go big" - moving nearer to Pelosi's US$2.2 trillion proposal. That came days after Trump abruptly called off negotiations until after the Nov 3 election where he's seeking re-election.

Trump's reversal and higher offer drew criticism from Senate Republicans, some of whom are uneasy about the national debt and whether a deal would cost Republicans votes the following month.

Federal Reserve officials have urged Congress to be aggressive. The top of the Minneapolis Federal Reserve Bank said the recovery had "flattened out," indicating the necessity for further stimulus.

"A lot of individuals are suffering. A whole lot of smaller businesses are suffering," Minneapolis Fed chief Neel Kashkari said on CBS' "Face the Nation" on Sunday.

White House monetary adviser Larry Kudlow said on CNN's "State of the Union" that Republicans would eventually come around.

"I think if an agreement can be reached, they will go with it," he said, adding there will be "further efforts of negotiation" on a package this week.