Pelosi and Mnuchin Working Through the Weekend

Pelosi and Mnuchin Working Through the Weekend

This is my stimulus update for Saturday, October 3.

Trump COVID-19 Diagnosis Update

We are one month from Election Day, the President has been hospitalized after a positive COVID-19 diagnosis in his fat presidential suite, though the White House claims that his symptoms are mild and that the hospitalization is as a precautionary measure.

The White House physician Dr. Conley said the president is not having difficulty breathing or walking around and is in exceptionally good spirits, the doctor said the president said he feels like he could walk out of here today.

But then we have reports like this from Sara Cook of CBS, saying that some anonymous source said, “The president’s vitals over the last twenty-four hours were very concerning and the next 48 hours will be critical in terms of his care.  We’re still not on a clear path to a full recovery.”

And of course you have the New York Times reporting stuff like this.  So at this point there’s conflicting reports, or possibly the same report spun in very different ways, but the president’s doctor said that he is doing relatively well.

Three Republican senators have now tested positive for COVID-19 as well: Mike Lee of Utah, Ron Johnson of Wisconsin, and Thom Tillis of North Carolina.  This reduces the Republican majority in the Senate, for the time being, to 50 Republicans to 47 Democrats.

Trump’s campaign manager Bill Stepien as well as Republican National Convention Chairwoman Ronna McDaniel have also tested positive, as has former Trump advisor Kellyanne Conway.

Chris Christie is positive.  Pelosi is negative, Pence is negative, Biden is negative according to their latest COVID-19 tests.

Pelosi and Mnuchin Stimulus Update

Meanwhile, with stimulus, Speaker of the House Nancy Pelosi and Secretary of the Treasury will likely work through the weekend on negotiations.  I told you yesterday what Pelosi perceives to be the major differences in negotiations right now, and of course in terms of dollar amounts, the biggest difference item is assistance for state and local governments, with the White House’s offer at $250 billion versus the Democrats’ offer in the updated HEROES Act of $436 billion.

We do know that Mnuchin had a call with at least one Republican senator this week, possibly more, letting them know that any deal with Pelosi would involve a significant amount of state and local funding.  It is thought that Mnuchin is trying to prep Republican senators for a bigger bill than many of them would prefer, especially when it comes to state and local funding.

Anonymous sources are saying that Republicans might go for a phased-in stimulus check between $1,000 and $1200, that has not been confirmed at all, it’s just a rumor at this point, if anything more substantial comes out to support that I’ll let you know.

We have learned that Pelosi and Mnuchin also had a phone call with Federal Reserve Chairman Jerome Powell earlier this week discussing state and local funding, we do not have a transcript of this call, but this shows that things are getting more serious now with negotiations.  And by the way if you haven’t noticed, Chuck Schumer and Mark Meadows have been absent from the negotiating table this week, this has been the Steve and Nancy show, basically, and like we discussed over the summer some hawk-eyed Republican senators feel that Steve plays a little too soft with the Democrats and relents to their demands too easily.

Well, according to Republican sources for Politico, many Republicans fear that Mnuchin will sign off on the Democrats’ wish to allow those otherwise eligible Americans with an ITIN, an Individual Taxpayer Identification Number, to be eligible for stimulus checks, while in the CARES Act you had to have a social security number even if you were otherwise eligible.

Democrats want to change that to allow those with ITINs to be eligible as well if they are otherwise eligible, Republicans want to keep the eligibility at social security number-only, and Republicans are afraid that Mnuchin may cave to Pelosi on this issue.  I’m sure they will say the same thing about state and local funding if something transpires there.

Mitch McConnell (Slightly) Positive on Stimulus

Senate Majority Leader Mitch McConnell has announced pro forma sessions only in the Senate for the next two weeks.  For his part, Mitch has sounded a bit more positive about a deal being reached than he has been in some time, saying at a news conference in Kentucky, “I’m trying to figure out here whether I should predict another bill quickly or not, but the talks have speeded up in the last couple days.

I think we’re closer to getting an outcome.”  Of course McConnell isn’t one of the negotiators, but he is given routine updates by Secretary Mnuchin.

Pelosi on Airline Stimulus

Yesterday Pelosi released a statement calling on airlines to delay worker furloughs after some CARES Act support for airlines expired earlier this week, and she said that that lifeline for airlines would be included in any stimulus relief package or passed as a standalone bill.

That is new, that is a shift in perspective, I think, from Pelosi, this newfound willingness to pass something standalone, but of course this comes at a time when the president is quarantined and all eyes are now on Congress to pass more stimulus before the election.

Unemployment Update (Lost Wages Assistance)

state unemployment memorandum

Not much for unemployment, I really hope those of you in Kansas get paid this coming week per the governor’s announcement that I told you yesterday.

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