By Andrew Taylor
House Democrats are going back to the drawing board on a huge COVID-19 relief bill, paring back the measure in an attempt to jump-start negotiations with the Trump administration.
The Democratic-controlled chamber could also pass the $2 trillion-plus measure next week if talks fall through to demonstrate that the party isn't giving up on passing virus relief before the election.
The chamber passed a $3.4 trillion rescue measure in May but Republicans dismissed the measure as bloated and unrealistic. Even as Democrats cut their ambitions to $2.2 trillion or so, Senate Republicans have focused on a much smaller rescue package in the $650 billion to $1 trillion range.
An aide familiar with the leadership discussions and authorized to characterize them said the new bill would total about $2.4 trillion and is likely to contain additional relief for the airline and restaurant sectors, which have been especially slammed by slumps in business from the virus. The aide requested anonymity to characterize the closed-door talks.
"We're trying to figure out how to move a negotiation forward because we believe the American people need some help. And so we're going to try," said Rules Committee Chairman Jim McGovern, D-Mass. "Our chairs are looking at everything again and the hope is that we can come up with something."
House Speaker Nancy Pelosi, D-Calif., commissioned the effort, which caused a buzz in Washington's lobbying industry — and whose news appeared to briefly spike the stock market — even as hopes for a deal between the Democratic-controlled House, the GOP-held Senate, and the White House still seem to be a longshot.
"We are still striving for an agreement," Pelosi told her colleagues, according to the aide. "If necessary, we can formalize the request by voting on it on the House floor."
Recent talks between Pelosi and Treasury Secretary Steven Mnuchin have gone nowhere, but neither side wants to officially give up.
Republicans reacted cooly, especially at the prospect of a partisan floor vote if the effort doesn't spark constructive talks.
"It's a waste of time," said Rep. Kevin Brady, R-Texas, saying a Democrats-only approach won't go anywhere. "She could pass 10 more partisan bills. That won't get us an inch closer."
Thursday's developments come as moderate "front line" Democrats in competitive reelection races have been pressing leaders like Pelosi to become more flexible. Some participated in drafting a $1.5 trillion bipartisan bill that fell flat when outlined last week. Pelosi and other Democratic leaders, however, say they are uninterested in a "message vote" that offers political cover but fails to catch on with the Senate or the White House.
Pelosi had largely dismissed the protests from moderates to pare back leadership COVID demands or schedule a floor vote. Some of the dissenters, however, had threatened to sign onto a GOP procedural effort to pass a renewal of aid for small businesses, a step with the potential to embarrass her.
"We're focused on a negotiation, we want to get a deal with Secretary Mnuchin and the Senate because we want to get people help, not just messages," said House Majority Leader Steny Hoyer, D-Md.
The revised measure is likely to contain scaled-back proposals to give aid to state and local governments, $1,200 direct payments to most Americans, more than $100 billion in aid to schools seeking to safely reopen, and funding for renewed pandemic jobless benefits and production of a COVID vaccine.
"I think we're headed towards a resurgence of the virus in the fall, and until we defeat the virus, you're not going to have full economic recovery," said Ways and Means Committee Chairman Richard Neal, D-Mass.
Many U.S. consumers say they’ve noticed higher than usual prices for holiday gifts in recent months, according to a a December poll from The Associated Press-NORC Center for Public Affairs Research. A contributing factor is the unusually high import taxes the Trump administration put on foreign goods. While the worst-case consumer impact that many economists foresaw from the administration’s trade policies hasn’t materialized, some popular gift items have been affected more than others. Most toys and electronics sold in the U.S. come from China. So do most holiday decorations. Jewelry prices have risen due to the cost of gold.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
President Donald Trump has signed an executive order to block states from regulating artificial intelligence. He argues that heavy regulations could stifle the industry, especially given competition from China. Trump says the U.S. needs a unified approach to AI regulation to avoid complications from state-by-state rules. The order directs the administration to draw up a list of problematic regulations for the Attorney General to challenge. States with laws could lose access to broadband funding, according to the text of the order. Some states have already passed AI laws focusing on transparency and limiting data collection.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
House Republicans in key battleground districts are working to contain the political fallout expected when thousands of their constituents face higher bills for health insurance coverage obtained through the Affordable Care Act. For a critical sliver of the GOP majority, the impending expiration of the enhanced premium tax credits after Dec. 31 could be a major political liability as they potentially face midterm headwinds in a 2026 election critical to President Donald Trump’s agenda. For Democrats, the party’s strategy for capturing the House majority revolves around pinning higher bills for groceries, health insurance and utilities on Republicans.
