Trump Says He Is Shutting Down Covid-19 Stimulus Negotiations Until After the Election

President Donald Trump arrives back at the White House aboard Marine One, Monday evening, Oct. 5, 2020 in Washington, after being treated for COVID-19 at Walter Reed National Military Medical Center.

President Donald Trump arrives back at the White House aboard Marine One, Monday evening, Oct. 5, 2020 in Washington, after being treated for COVID-19 at Walter Reed National Military Medical Center. AP Photo/J. Scott Applewhite

 

Connecting state and local government leaders

Treasury Secretary Steven Mnuchin had been in discussions with House Speaker Nancy Pelosi over a possible new deal.

President Trump abruptly cut off discussions with Democrats about the next round of coronavirus stimulus aid Tuesday, announcing his administration would suspend talks until after the presidential election on Nov. 3.

The announcement made on Twitter came the same day the head of the Federal Reserve warned that the economy would worsen without more financial support.

Republicans and Democrats have been negotiating for months to try and reach compromise over the next stimulus package, with Republicans unwilling to spend as much as Democrats have proposed. 

In the announcement, made the day after the president emerged from the hospital after contracting Covid-19, Trump lambasted House Speaker Nancy Pelosi and accused her of “not negotiating in good faith.”

“I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” Trump wrote in a series of tweets.

Rather than continue negotiations, Trump said he was instructing Senate Majority Leader Mitch McConnell to focus on getting the Senate to approve and install his U.S. Supreme Court nominee, Amy Coney Barrett.

“Our Economy is doing very well. The Stock Market is at record levels, JOBS and unemployment also coming back in record numbers. We are leading the World in Economic Recovery, and THE BEST IS YET TO COME!” Trump wrote.

The announcement had the opposite effect, with stocks tumbling immediately afterward.

Talks between the Republican and Democratic lawmakers over a relief package had stalled over the summer, but as recently as last week there were some signs of progress. Treasury Secretary Steven Mnuchin, one of the administration’s chief negotiators, indicated last week that the White House was open to a package that included some level of aid funding for state and local governments. Direct aid for state and local governments has been a sticking point in the negotiations, with Senate Republicans balking at more assistance than what was provided in the CARES Act approved in March.

The Democrats’ had scaled back their initial $3 trillion proposal to $2.2 trillion in total spending. Meanwhile Republicans, who had proposed a $1.1 trillion relief package over the summer, offered a $1.6 trillion package last week that included $250 billion for state and local governments. While the scope of the assistance differed, both packages also included extended help for unemployed people and businesses struggling during the coronavirus-fueled economic downturn.

“Clearly, the White House is in complete disarray,” Pelosi said, noting that by abandoning talks Trump was ignoring the advice of Federal Reserve Chairman Jerome Powell. “Walking away from coronavirus talks demonstrates that President Trump is unwilling to crush the virus.”

In a speech Tuesday to the National Association for Business Economics, Powell said too little support for the U.S. economy “would lead to a weak recovery, creating unnecessary hardship for households and businesses.”

“Over time, household insolvencies and business bankruptcies would rise, harming the productive capacity of the economy, and holding back wage growth,” Powell said. “By contrast, the risks of overdoing it seem, for now, to be smaller. Even if policy actions ultimately prove to be greater than needed, they will not go to waste.”

Powell warned that providing inadequate aid could lead to a long and drawn out recovery process, which could “trigger typical recessionary dynamics, as weakness feeds on weakness” and “exacerbate existing disparities in our economy.”

Andrea Noble is a staff correspondent with Route Fifty.

NEXT STORY: Debt Collectors Have Made a Fortune This Year. Now They’re Coming for More.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.