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White House Open to New $1.5 Trillion Stimulus-Deal Proposal

Published 09/16/2020, 11:20 AM
Updated 09/16/2020, 11:36 AM
© Reuters.  White House Open to New $1.5 Trillion Stimulus-Deal Proposal

(Bloomberg) -- The White House is open to a compromise $1.52 trillion stimulus proposal that’s designed to break a months-long deadlock over providing economic relief to the U.S. economy, said Chief of Staff Mark Meadows.

The long-shot plan by a 50-member group of House Democrats and Republicans, which has a bigger total spending figure than the administration previously endorsed, is not a “showstopper,” Meadows said Wednesday on CNBC. It was previously panned by both Senate Republicans and House Democratic leaders.

President Donald Trump on Twitter Wednesday urged Republicans to accept a higher level of spending. Last week, the Senate GOP attempted to pass a bill providing $650 billion in new stimulus, which was blocked by Democrats for being insufficient to address the continuing Covid-19 crisis.

“Go for the much higher numbers, Republicans, it all comes back to the USA anyway (one way or another!),” Trump said.

The Problem Solvers Caucus plan was developed over six weeks with the knowledge of the White House and leadership from both parties. But the track record of bipartisan groupings of moderates in either the House or Senate to broker major deals has been poor in recent years.

The proposal offered compromises on the two thorniest issues in the stalled talks between congressional Democrats and the Trump administration. On aid to state and local governments, the group is backing about $500 billion, splitting the difference between the $915 billion sought by House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer, and the $150 billion put forward by the White House.

House Majority Leader Steny Hoyer on Tuesday criticized the plan after it came out, saying Democrats should not agree to less than $2 trillion.

Asked about Trump’s comments Wednesday, Republican Senate Majority Whip John Thune said “I assume that means he wants to make a deal.”

Thune said $1.5 trillion would cause “ a lot of heartburn” for Senate Republicans, however.

©2020 Bloomberg L.P.

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