Moderates reach agreement on aid to state and local governments – but not corporate liability protections, Schumer says

Senate Democratic leader touts compromise even though it excludes a major GOP demand

A group of moderate senators that have been working on a new Covid-19 economic relief package have reached a final agreement on Democrats’ demand for more aid to state and local governments – but they failed to strike an accord on pandemic-era legal protections for companies.

Senate Minority Leader Chuck Schumer made the announcement during his Monday session-opening remarks as the two parties and the Trump White House try to reach a deal this week on a new coronavirus recovery measure.

The moderates have been working to finalise the details of a $908bn Covid-19 proposal that could still be the basis of a deal between party leaders and Donald Trump’s hand-picked negotiators. But Senate Majority Leader Mitch McConnell indicated the chamber will adjourn by week’s end with or without a new Covid-19 deal.

“So, the next several days are going to bring about one of two outcomes," he said a few minutes before the Democratic leader spoke. “Either 100 Senators will be here shaking our heads, slinging blame, and offering excuses about why we still have not been able to make a law, or we will break for the holidays having sent another huge dose of relief out the door for the people who need it.”

“It’s up to us. We decide," the Kentucky Republican said. “This is entirely within our control.”

Only the two parties are far apart, and have been for six months – even as the Covid-19 death toll in the United States on Monday surged past 300,000 and the economy looks set to again sputter heading into what medical experts say will be a death-filled winter.

Democrats have demanded much more for state and local governments, warning that teachers and sanitation workers and other government employees being laid off in the coming months would be a major economic anchor.

Republicans have insisted liability protections for companies be included in a new package, arguing lawsuits stemming from the pandemic could also hurt businesses and further cripple America’s economic engine.

Neither leader used his opening remarks to give any hope that a deal is possible by mid-week, when the House leadership would have to summon its members back for votes. Most existing federal Covid benefits expire on 26 December, but only Speaker Nancy Pelosi has said the Congress could be in session between Christmas and 5 January, when the new Congress will be seated.

Both chambers and the White House also have to reach an accord on a government spending deal to avert a government shutdown. That deadline is Friday at midnight.

All parties have been negotiating a massive “omnibus” appropriations bill that features all 12 annual spending measures and other items, like an energy bill that included carbon-reducing provisions. But the omnibus has not been etched in stone, with members continuing to negotiate.

That means the Senate could leave town later this week by merely passing its second short term spending measure to keep the federal government operating – but punt the Covid relief package and the omnibus spending bill into next year. 

Mr Schumer continues to tout the moderate package, while Mr McConnell has pushed a GOP plan that Democrats continue to reject.

For his part, Mr McConnell appeared to back a slimmed-down version of the moderates’ plan, saying “we should agree where we can.”