⭐ Start off 2025 with a powerful boost to your portfolio: January’s freshest AI-picked stocksUnlock stocks

Congress faces coronavirus, government funding battles as summer recess ends

Published 09/04/2020, 09:40 AM
Updated 09/04/2020, 10:56 PM
© Reuters. General view of the U.S. Capitol building, amid the coronavirus (COVID-19) outbreak on Capitol Hill in Washington

By Patricia Zengerle and Richard Cowan

WASHINGTON (Reuters) - The U.S. Congress faces a tight deadline to avoid a government shutdown as lawmakers begin returning to Washington next week, complicated by bitter conflicts between Republicans and Democrats over the next package of coronavirus aid.

The Republican-led Senate is due back on Tuesday, while the Democratic-led House of Representatives plans to hold votes on bills starting the following week.

With congressional elections on Nov. 3, both chambers have very few days left to finish work as lawmakers plan to campaign in their home states for much of October.

The federal fiscal year ends on Sept. 30, so they will have to scurry to reach a deal on legislation funding government programs and averting a partial shutdown that could be especially damaging to lawmakers facing re-election in November.

On Thursday, White House Press Secretary Kayleigh McEnany expressed optimism that agreement will be reached in a timely way.

Congress is widely expected to pass a temporary measure mainly funding the government at current levels, leaving budget decisions for after Election Day.

But the issue is complicated by rancor over how best to address the coronavirus, especially amid the yawning federal budget deficit.

On Wednesday, the nonpartisan Congressional Budget Office said the fiscal 2020 deficit would hit $3.3 trillion, or 16% of gross domestic product, fueled by emergency pandemic aid already enacted into law.

More than $3 trillion in coronavirus relief was enacted earlier this year. But the Republican-led Senate left town last month without taking up another $3 trillion aid package the House passed in May or an alternative.

The two parties are sharply divided, but there are also disputes among Trump's fellow Republicans. Many of the Senate's 53 Republicans are on record opposing additional federal coronavirus relief, and most of the others want to pass a far smaller bill than the House's.

One senior Senate Republican aide said disagreement among Republicans was so great that it was not clear whether a smaller, partisan bill could come up for a vote. Senate Democratic Leader Chuck Schumer has said he opposes a so-called "skinny" coronavirus bill and his party could block one from passing.

Alternatively, lawmakers could tuck coronavirus relief into the must-do government funding bill. Provisions could include extra unemployment benefits to replace the $600-per-week payments that expired in July, measures to prevent evictions or aid for schools or local governments.

But a spokesman for House Speaker Nancy Pelosi told Reuters that Democrats want a "clean" government-funding bill. That usually means a measure without controversial add-ons.

Republican President Donald Trump is running for re-election, and one- third of the 100-member Senate and all 435 House seats are up for grabs when voters head to the polls on Nov. 3.

© Reuters. General view of the U.S. Capitol building, amid the coronavirus (COVID-19) outbreak on Capitol Hill in Washington

A government shutdown just before the elections, as the coronavirus pandemic continues, could be particularly damaging to Republican prospects since they control the White House and Senate.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.