US senators launch negotiations on US$1t stimulus

[WASHINGTON] US senators began critical negotiations Friday over a US$1 trillion emergency stimulus package to help Americans ravaged by the coronavirus, with Republicans seeking rapid passage while Democrats push for stronger worker protections.

Senate majority leader Mitch McConnell and his Democratic counterpart Chuck Schumer sat down for talks with Treasury Secretary Steven Mnuchin and other administration officials to thrash out compromise over the massive federal intervention.

The version unveiled late Thursday includes onetime "recovery rebates" of up to US$1,200 for adults earning under US$99,000 annually, and hundreds of billions of dollars in loan guarantees to industries hard hit by the crises including airlines and small businesses.

"I have tasked bipartisan teams to reach agreement by the end of today, tonight," Mr McConnell told reporters, adding that he wants a vote on final passage on Monday before it goes to the House of Representatives.

President Donald Trump said he spoke by phone with the Senate leaders including a "very good telephone conversation" with Schumer.

"There's tremendous spirit to get something done," Mr Trump said.

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Mr McConnell has said the top priorities are "direct financial help" for Americans, relief for businesses, stabilisation of the economy and job protection.

But Democrats, warning of a tough negotiation ahead, said McConnell's measure leaves out critical provisions such as expanded unemployment insurance beyond one-time payments, additional paid family leave and paid sick leave, and prioritisation of financial aid to American workers over corporations.

"None of that is in (Mr McConnell's) bill," Mr Schumer told reporters. "We're going to fight hard to get them in."

But Mr Schumer did suggest an agreement could be reached, despite chasms of disagreement and uncertainty.

"The process that Leader McConnell has chosen is not one that I would have chosen, because without the House it slows things down. But we must make it work, and we will," he said.

"This is one of the worst crises we've faced, and we must act together quickly and strongly."

The initial talks -- with participants practicing social distancing and seated about six feet (two meters) apart -- were taking place without participation from members of the Democratic-controlled House, led by Speaker Nancy Pelosi.

Republican Senator Lindsey Graham, a Trump ally, voiced optimism for the negotiations and support for the direct payments to Americans, describing them as "a bridge to a system of sustainable income-replacement."

AFP