Democrats may be forced to abandon state and local aid
There were clear signs on Monday that Democrats could be forced to abandon a push for at least $160 billion in aid to cash-strapped states and cities in order to get a bipartisan agreement on some relief provisions.
Pelosi and Schumer both refused to say that the aid was a red line for them in the talks. And during a 22-minute phone call Monday evening, the speaker told Treasury Secretary Steven Mnuchin that the GOP insistence to include lawsuit protections for businesses and other entities "remain an obstacle" to getting an agreement on state and local aid -- since Republicans have demanded the two be tied together.
A bipartisan group of lawmakers unveiled the legislative text of a $908 billion compromise Covid relief plan on Monday. But rather than putting out a single legislative package, the bipartisan coalition
splitting their proposal into two bills with one dealing with the thorny issues of state and local aid and liability protections, and the other focused on provisions expected to win widespread bipartisan support.
The move to split up the deal signals just how difficult it would be to win broader buy-in for such a package -- and Republicans have insisted they will only support state and local aid if it's coupled with liability protections, a move that Democrats have resisted.
Two senior Democratic sources briefed on the talks told CNN that it now appears unlikely that state and local aid will make it into a pandemic relief package.
If the aid is ultimately dropped from the plan, it would amount to a major concession from Democrats, who had advanced roughly $1 trillion for aid to states and cities as part of a $3 trillion-plus plan that passed the House in May and that the Senate never considered. Democrats had argued the money was paramount to ensure that workers performing vital services -- ranging from first responders to health care workers -- could continue to say on the job.