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Democrats Unveil Their Own Coronavirus Economic Relief Plans - The New York Times

WASHINGTON — Democrats, eager to put their stamp on a coronavirus relief package as the White House debates which economic plan to propose, scrambled on Wednesday to draft and introduce legislation to provide financial help to patients, workers and families affected by the fast-moving epidemic and speed it to a House vote on Thursday.

Senate Democrats released their plan, which would also include help for small businesses, on Wednesday morning, and top aides said Speaker Nancy Pelosi was aiming to have a separate package including unemployment insurance, paid sick leave and food assistance ready by afternoon. Representative Steny H. Hoyer of Maryland, the No. 2 Democrat, said the House would vote on it on Thursday before lawmakers are scheduled to leave Washington for a weeklong recess.

Ms. Pelosi began talks on Tuesday with Steven Mnuchin, the Treasury secretary, with the goal of reaching swift agreement, but the White House and congressional Democrats are divided about what the package should look like.

Mr. Mnuchin, testifying on Capitol Hill, said he had been in “round the clock” discussions with Ms. Pelosi and Senator Mitch McConnell of Kentucky, the top Republican, and hoped to reach agreement within 48 hours on a relief package that would include paid sick leave, help for small and medium-size businesses and other broadly supported items.

“This is a little bit like a hurricane, and we need to cover these outside of normal expenses,” Mr. Mnuchin said.

He said he expected to return to Congress later to ask for a larger economic stimulus package — including President Trump’s idea for temporarily suspending payroll taxes, which has drawn bipartisan opposition on Capitol Hill — that will take longer to agree upon.

The Trump administration is also considering providing loan guarantees for the cruise, airline and hotel industries affected by the epidemic, similar to those that were offered after the terrorist attacks of Sept. 11, 2001.

“We are not looking for bailouts,” Mr. Mnuchin said. “Loan guarantees are a very effective way of making sure the government gets paid back without putting the government at risk.”

With both the House and Senate scheduled to be in recess next week, it is unclear how quickly any plan could be passed and sent to Mr. Trump for his signature.

The Trump administration is also weighing its options for unilateral action. Mr. Mnuchin said on Wednesday that he would recommend to the president that the Internal Revenue Service allow a delay of tax payments beyond the April 15 deadline, without penalty or interest, that would apply to “virtually all Americans other than the superrich.”

All individuals are allowed to request tax payment extensions online, but the Treasury secretary said his proposal was for a special provision to help small and medium-size businesses and “hardworking individuals.” It would not apply to large corporations or the wealthiest Americans, Mr. Mnuchin said, but he did not elaborate on what the threshold would be.

“That will have the impact of putting over $200 billion back into the economy, and that will create a very big stimulus,” Mr. Mnuchin said, adding that Treasury was already working on funding the initiative.

In moving hastily to unveil their own plans, Democrats hope to set the terms of the debate and get ahead of the Trump administration, which is divided internally over what to do. Ms. Pelosi has scheduled a 4 p.m. meeting with her caucus to discuss her proposal. On Wednesday morning, top House Democrats were briefed by Jason Furman, an economist who advised former President Barack Obama, on how to proceed.

The quick action carries risk for House Democrats, who do not want to be seen as trying to politicize a deadly epidemic. But it also puts pressure on Republicans to support a measure to provide aid for people who are sick or out of work amid a public health crisis.

After weeks of playing down potential effects of the virus, Mr. Trump has called for the temporary elimination of payroll taxes, a proposal whose cost would rival both the Wall Street bailout of 2008 and the economic stimulus measure that followed.

Mr. Mnuchin has been privately skeptical about calling for a payroll tax cut or holiday, but he told lawmakers on Wednesday that such a move would provide broader stimulus for the economy, which is likely to face a slowdown from all the disruption.

Democrats want a more targeted approach. Senate Democrats on Wednesday released an initial response plan, featuring paid sick leave but also several new proposals.

Those plans include a six-month break for borrowers on paying federal student loans and mortgages; block grants to help communities where the virus has shut down the economy; direct grants to small businesses; assistance to help public transit systems stay in operation; rental and mortgage payment assistance for some borrowers; and grants to child care centers and schools that are infected with the virus.

“We are just appalled at the administration,” said Senator Chuck Schumer, Democrat of New York and the minority leader, adding that Mr. Trump and his advisers have “not come up with a plan to help people who need help.”

“We don’t think they should just throw money out of an airplane and hope that some of it lands on the people” who need assistance, Mr. Schumer added, referring to the payroll tax idea. In the House, Mr. Hoyer called it “a nonstarter.”

House Democrats’ plan was set to include proposals for government-paid sick leave and increased spending on safety-net programs like food stamps and unemployment insurance, according to talking points circulated by Ms. Pelosi on Wednesday morning.

The legislation, according to the talking points, will also include widespread and free coronavirus testing and new standards for protective equipment for health care workers, janitorial staff and others on the front lines of the virus. It would also provide government reimbursement for all health costs Americans incur that are not covered by their insurance plans as well as efforts to increase the capacity of the health care system to take in coronavirus patients.

Democrats also plan to include new rules against price gouging for “medical and nonmedical essentials” during the outbreak, the talking points said.

Emily Cochrane contributed reporting.

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