Talks were expected to continue late into Saturday night as the two sides traded a flurry of proposals to resolve a disagreement over the central bank’s emergency funding authority — while the fate of the $900 billion deal, and whether one can be approved before government funding expires Sunday night, hangs in the balance.
With Americans eager for relief, impatience is growing in the ranks as both sides recognize a deal must be reached Sunday or the talks could collapse completely.
Sen. Chris Coons, a Delaware Democrat, said that a deal will either be reached Sunday on a compromise, or one side needs to make a “hard decision” about how to proceed.
“My hunch is what will happen tonight is repeated good faith efforts at language, and clarifying whether there is or isn’t something we can do to resolve this — and if not, a hard decision by one party or the other,” Coons said Saturday night. “Because this cannot go on.”
Both sides continue to exchange proposals over the biggest sticking point: How to rein in the emergency lending authority of the Federal Reserve.
Republicans argue that the emergency lending program created under the March CARES law needs to be wound down as envisioned by that law, saying leaving it open would amount to a slush fund for the incoming Biden administration.
But Democrats argue that the authority is essential to continue to prop up the economy and say that the provision to wind it down — pushed chiefly by GOP Sen. Pat Toomey of Pennsylvania — would tie the hands of President-elect Joe Biden’s team.
That dispute has created a narrow focus in the effort to lock down an agreement on a sweeping relief package.
Senate Minority Leader Chuck Schumer is engaged in talks with Toomey, and other Democrats are also taking part in the talks.
Sen. Kyrsten Sinema, an Arizona Democrat, met privately with Toomey and the two have discussed how to pare back Toomey’s proposal. The discussions led to further exchanges with Senate Majority Leader Mitch McConnell and other top Republicans to see if they can get a deal.
Leaving the Senate floor on Saturday, Sen. Bill Cassidy, a Louisiana Republican, said he thinks they will be able to get a deal.
“I think they’re going to resolve it,” Cassidy said, with a “more narrow focus.”
Schumer indicated on a call with Senate Democrats that if a deal is reached, a vote could happen in the Senate on Sunday night or Monday — but that would take consent of all 100 senators to allow that vote to happen.
Government funding is on track to expire on Sunday night, leaving lawmakers up against the clock.
Hill leaders had hoped to reach a deal by Saturday night to move an agreement to the House floor as soon as Sunday, but that schedule remains ambitious at best.
Senate Majority Whip John Thune warned on Saturday that the effort to finalize a deal could spill over into Monday.
“I’m still somewhat hopeful we could wrap…
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