House Democrats Knock $1T Off Stimulus Proposal To Jump-Start Talks

The Washington Post: Pelosi Abruptly Shifts Course, Restarts Relief Push Amid Signs Economy Is Straining
House Speaker Nancy Pelosi abruptly shifted course Thursday and moved to assemble a new coronavirus relief bill to form the basis for renewed talks with the White House, amid mounting pressure from moderates in her caucus and increasingly alarming economic news. The new legislation would be significantly narrower in scope than the $3.4 trillion Heroes Act the House passed in May. Pelosi (D-Calif.) has more recently focused on an additional $2.2 trillion in aid — a figure Republicans say is still too high. But in a meeting with House Democratic leaders Thursday she said the new bill would be around $2.4 trillion, because of urgent needs arising from restaurants and airlines. Details were provided by a person familiar with the meeting who spoke on the condition of anonymity because it was private. (Werner and Bade, 9/24)

Roll Call: House Democrats Drafting $2.4 Trillion Coronavirus Relief Bill 
The House could vote on that as-yet-unreleased $2.4 trillion bill as soon as next week if GOP cooperation doesn't materialize, according to Democratic lawmakers. But Democrats say they're hoping for renewed talks with Treasury Secretary Steven Mnuchin and a compromise agreement that can actually become law. Democrats will need to trim about $1 trillion from the legislation the House passed in May that previously served as their starting point in the talks. That's a hefty task for party leaders seeking to appease the rank-and-file, given the ongoing economic downturn, record unemployment and the likely upcoming surge in hospitalizations during cold and flu season. (McPherson and Shutt, 9/24)

Politico: Pelosi Preps New Coronavirus Relief Plan Amid Stalled Talks
"We are still striving for an agreement," Pelosi told her leadership team, according to a source familiar with the meeting. “If necessary, we can formalize the request by voting on it on the House floor.” The move comes after Pelosi refused, for weeks, to consider passing another relief bill amid a lengthy standoff with Republicans and rising demands from centrist Democrats that the House take more action before the election. Putting the bill on the floor would also be a win for Pelosi’s deputy, House Majority Leader Steny Hoyer, who has been pushing the idea for weeks. (Caygle, Bresnahan and Ferris, 9/24)

The New York Times: Stalled Talks Over Covid-19 Stimulus In The U.S. Show Signs Of Life 
Treasury Secretary Steven Mnuchin said Thursday that he and House Speaker Nancy Pelosi had agreed to resume talks on a new economic relief package. “I’ve probably spoken to Speaker Pelosi 15 or 20 times in the last few days on the C.R.,” said Mr. Mnuchin, referring to a continuing resolution to extend government funding. “And we’ve agreed to continue to have discussions about the CARES Act.” (9/24)

The Hill: Vulnerable Democrats Tell Pelosi COVID-19 Compromise 'Essential' 
A group of vulnerable House Democrats on Thursday began circulating a new letter calling on Speaker Nancy Pelosi (D-Calif.) and Majority Leader Steny Hoyer (D-Md.) to hold a vote on a bipartisan coronavirus relief package before Election Day. The moderates, led Problem Solvers Caucus Co-Chairman Josh Gottheimer (D-N.J.) and freshman Reps. Abigail Spanberger (D-Va.) and Dean Phillips (D-Minn.), said they did not support a GOP resolution to force a vote on emergency aid for small businesses — a tactic that had gained some momentum in recent days from centrist Democrats anxious about heading home without money for constituents struggling with the pandemic. (Wong, 9/24)

In related economic news —

AP: Fraud, Backlogs Disrupt US Unemployment Benefit Payments
Many American workers applying for unemployment benefits after being thrown out of a job by the coronavirus face a new complication: States’ efforts to prevent fraud have delayed or disrupted their payments. California has said it will stop processing new applications for two weeks as it seeks to reduce backlogs and stop phony claims. Pennsylvania has found that up to 10,000 inmates improperly applied for aid. (Rugaber and Dale, 9/24)

The Washington Post: More PPP Loan Questions After Companies Paid Dividends, Bought Their Own Stock 
Some publicly traded companies that received taxpayer-backed small business loans to pay their employees during the early weeks of the pandemic paid out millions to Wall Street investors in dividends and share buybacks, publicly available financial disclosures reviewed by The Washington Post show. The findings reinforce long-standing concerns that the Paycheck Protection Program, an emergency stimulus fund offering low-interest, forgivable loans to businesses with fewer than 500 employees, was accessed by financially healthy companies that could have gone without a bailout. (Gregg, 9/24)