Mnuchin, Schumer rev up talks as key aid fund runs dry

WASHINGTON — With a key coronavirus fund nearly exhausted, negotiations are accelerating in Washington over President Donald Trump’s $250 billion emergency request to help smaller employers across the country keep workers on their payroll.

Senate Minority Leader Chuck Schumer and Treasury Secretary Steven Mnuchin spoke Wednesday morning about legislation to shore up a paycheck subsidy program that has nearly reached its $349 billion lending limit. House and Senate aides were set to meet with Treasury officials later in the day.

Reaching a deal won’t be easy. The Capitol is largely shuttered, requiring consensus from all sides for any legislation to pass, and top GOP leaders are vowing to stick closely to Trump’s request despite Democratic demands. Long-standing feuds and rivalries hang over the talks, including a toxic relationship between House Speaker Nancy Pelosi and Trump.

But the unprecedented legislative environment gives Democrats considerable influence, even if their funding requests for hospitals and state and local governments may have to be scaled back significantly or dropped, at least for now. Democrats blocked a fast-track bid to pass the funding last week, and Republicans in turn stymied their efforts for additional funding for other priorities in a brief debate that was mostly a messaging exercise.

The Senate is away from Washington through May 4, though it convenes twice each week for pro forma sessions that could be used to pass more coronavirus aid — though only if no senator objects.

With leaders unable to readily summon lawmakers to Washington, the usual power dynamics are scrambled, especially in the House. There, Minority Leader Kevin McCarthy, R-Calif., for example, can stymie legislation more easily than if members are present, and Pelosi, D-Calif., cannot rule the House with her typical tight grip.

At issue is a $350 billion paycheck protection program that’s a centerpiece of last month’s $2.2 trillion rescue bill. The program gives grants to businesses with fewer than 500 workers so that they can maintain payroll and pay rent while shutting down their businesses during social distancing edicts.

The program is quickly running dry after being open for only a matter of days, though it’s unclear how much money has actually been distributed to businesses. Mnuchin says an additional $250 billion is needed immediately.

But Democrats want money for hospitals burdened under COVID-19 caseloads and additional funding for states and local governments straining as the economy slides into recession.