Democrats Block Republicans’ $1T Stimulus Package Over Concerns About Worker Protections, Bailout Restrictions

The New York Times: Emergency Economic Rescue Plan In Limbo As Democrats Block Action
Senate Democrats on Sunday blocked action on an emerging deal to prop up an economy devastated by the coronavirus pandemic, paralyzing the progress of a nearly $2 trillion government rescue package they said failed to adequately protect workers or impose strict enough restrictions on bailed-out businesses. The party-line vote was a stunning setback after three days of fast-paced negotiations between senators and administration officials to reach a bipartisan compromise on legislation that is expected to be the largest economic stimulus package in American history — now expected to cost $1.8 trillion or more. In a 47-to-47 vote, the Senate fell short of the 60 votes that would have been needed to advance the measure, even as talks continued behind the scenes between Democrats and the White House to salvage a compromise. (Cochrane, Tankersley and Smialek, 3/22)

The Associated Press: Congressional Rescue Talks Churn As Viral Crisis Expands
Top-level negotiations between Congress and the White House churned late into the night over a now nearly $2 trillion economic rescue package, as the coronavirus crisis deepened, the nation shut down and the first U.S. senator tested positive for the disease. As President Donald Trump took to the podium in the White House briefing room and promised to help Americans who feel afraid and isolated as the pandemic spreads, the Senate voted Sunday against advancing the rescue package. But talks continued on Capitol Hill. “I think you’ll get there. To me it’s not very complicated: We have to help the worker. We have to save the companies,” Trump said. (Taylor, Lemire and Mascaro, 3/23)

Reuters: Coronavirus Relief Bill Slows In U.S. Senate, Talks Continue
Democrats held their ground with Schumer calling the Republican plan “a giant, giant corporate bailout fund with no accountability.” Amid the partisan attacks, Schumer said that private negotiations were making progress. White House legislative liaison Eric Ueland told reporters a “handful” of disagreements still had to be resolved. Treasury Secretary Steven Mnuchin shuttled between the offices of the Republican leader and Senate Democratic Leader Chuck Schumer in search of a deal. At one point, Mnuchin also indicated to reporters that progress was being made. (Cowan and Alper, 3/22)

The Washington Post: Senate Falls Far Short Of Votes Needed To Advance Coronavirus Bill As Clash Between Republicans And Democrats Intensifies
Although senators of both parties and Trump administration officials vowed to continue negotiating -- around the clock if necessary -- the failed vote was the latest negative signal about Congress’ ability to come together around the legislation, which aims to inject close to $1.8 trillion into businesses and households. Policymakers are scrambling to address a spike in layoffs and businesses gasping for assistance as millions of Americans stay home to avoid contagion. (Werner, Kim, Bade and Stein, 3/22)

The Wall Street Journal: Republican Coronavirus Rescue Package Fails Procedural Hurdle In Senate
Following the vote, Senate Republican and Democratic leaders blamed one another for the impasse, but vowed to continue working on the plan. Senate Majority Leader Mitch McConnell said later Sunday that a second procedural vote would be held at 9:45 a.m. Monday, but Senate Minority Leader Chuck Schumer (D., N.Y.) objected, effectively blocking it until noon. Mr. McConnell accused Mr. Schumer of rattling the markets further. Mr. Schumer said he wanted to give both sides time to reach a deal. (Andrews and Wise, 3/22)

Los Angeles Times: Negotiations Stall On Massive Economic Rescue Package As Coronavirus Hits Senate
The bill, which currently totals about $1.8 trillion, would include direct payments to individuals and families (on average about $3,000 for a family of four, Mnuchin said), expanded unemployment benefits and a massive loan program to tide over small businesses. It would be by far the largest such measure in U.S. history, equivalent to roughly half the current federal budget. The bill is intended as a bridge to get the country through the worst of the crisis over the next eight to 10 weeks, with the possibility of further spending later if the emergency continues. (King and Haberkorn, 3/22)

The Washington Post: Treasury’s Power Over $500 Billion Loan Program Becomes Key Sticking Point In Coronavirus Aid Bill
Congressional lawmakers are feuding over a central component of the massive economic relief package being debated by the Senate, a battle that may threaten the enormous emergency aid package while reprising one of the most bitter political fights of the last decade. The Trump administration and Senate Republicans have called for giving the Treasury Department the authority to disburse hundreds of billions of dollars in emergency federal loans to firms hurt by the economic impact of the coronavirus. (Stein, 3/22)

Politico: Dems Seize On 'Slush Fund' To Oppose Republican Rescue Package
As Senate Democrats went to the floor Sunday night to vote — the first time they’d been there in days — they had one thing on their minds: a secret “slush fund” for Corporate America. That’s what Democrats are calling a $500 billion “Exchange Stabilization Fund” included in the massive Senate GOP proposal to rescue the U.S. economy from the coronavirus crisis. The fund, which would come under the control of Treasury Secretary Steven Mnuchin, is designed to aid distressed industries. (Bresnahan and Levine, 3/23)

CNN: Senate GOP Ramps Up Pressure On Democrats Over Coronavirus Stimulus Package With Monday Vote
Taking to the Senate floor late Sunday night, he announced another procedural vote on the package timed for 9:45 a.m. Monday — minutes after the stock market opens — but it was blocked by Democrats who don't want to be forced to take the vote. "I think there's a good chance we'll have an agreement. But we don't need artificial deadlines. We will get this done. We will come in at noon and hopefully we will have an agreement by then," Senate Minority Leader Chuck Schumer, who made the objection, said on the Senate floor. (Mattingly, Foran and Barrett, 3/23)

Modern Healthcare: Providers Warn Senate GOP Coronavirus Funding Proposal Will Not Be Enough
Hospitals, physicians, nurses and community health centers are warning that funding proposed by Senate Republicans for a third coronavirus response package will not be enough to prepare for an onslaught of COVID-19 patients and critical shortage of medical supplies. Senate Republicans included a Medicare payment bump and a hospital add-on payment in their first draft of an economic stimulus package. But comments by Senate leaders indicate direct funding for hospitals, money to purchase more medical supplies and increase testing capacity could be left for later. (Cohrs, 3/21)

The Associated Press: Fallout Of '08 Bailout Looms Over Washington Negotiations
In the fall of 2008, an unlikely alliance of lawmakers, regulators and Bush administration officials banded together to rescue an economy they feared was hours away from collapse. They also unwittingly reshaped American politics, unleashing a populist furor that lingers in both parties to this day. More than a decade later, those same political forces are shadowing a new debate over emergency government spending — only with far more taxpayer money at stake and even greater uncertainty over Americans’ futures. (Pace and Sloan, 3/23)

Politico: Villains Of 2008 Try To Be The Saviors Of 2020
America's banks are entering the most severe global crisis since 2008 as a pillar of strength in the economy, and that's giving them a powerful lever to press Congress to relax regulations to keep credit flowing. It's a stunning turn of events after a decade in which banks found their political standing in Washington severely tarnished over their role in unleashing the last financial meltdown and the multibillion-dollar government bailout that followed. (Warmbrodt, 3/23)

Politico: ‘Extraordinary Change’: How Coronavirus Is Rewiring The Republican And Democratic Parties
The 2008 financial crisis reshaped American politics, birthing a politics of outrage in the Tea Party on the right and an enduring strain of progressive populism on the left. The coronavirus is already on a similar trajectory, triggering massive prospective bailouts and other policy proposals that stand to rewire the Republican and Democratic parties for a generation — or longer. (Siders, 3/23)

Politico: Pelosi Pushes Forward With Her Own Emergency Coronavirus Package
Speaker Nancy Pelosi is hitting pause on bipartisan negotiations on a $1.6 trillion-plus emergency package in the Senate, saying the House will forge ahead with its own bill to address coronavirus after congressional leaders failed to reach a deal earlier Sunday. Pelosi’s comments come just hours before the Senate is scheduled to take a critical procedural vote on the package aimed at trying to stymie an economic collapse as the coronavirus continues to disrupt massive sectors of the U.S. economy. (Caygle, Ferris and Levine, 3/22)

Politico: Washington Is About To Pick Which Companies Survive
Two ugly truths about any epic economic crisis are that not all businesses will survive, and government interventions help determine which businesses will survive. As coronavirus crushes the economy, Washington policymakers are scrambling to figure out who to bail out, a responsibility that one veteran of the 2008 financial rescue morbidly but accurately compared to the frantic triage work that doctors are currently doing in overcrowded Italian hospitals. (Grunwald, 3/22)