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- Before a bipartisan $908 billion stimulus deal is passed, Democrats and Republicans must work out their differences on two issues: liability shields for businesses, and local government funding.
- Republican Sen. John Cornyn told the WSJ Monday: “It’s clear Democrats want additional state and local money and Republicans by and large are asking for some common-sense liability provisions.”
- As part of the $908 billion legislation unveiled December 1, businesses would be shielded from lawsuits on a short-term basis if employees or customers got infected with COVID-19.
- Many Democrats, such as Sen. Elizabeth Warren, have voiced concerns about the liability shield making businesses more lax in protecting their staff.
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More and more senators are endorsing a bipartisan COVID-19 stimulus deal – but two big barriers stand in the way of an agreement.
After months of negotiating, a bipartisan group of lawmakers unveiled a $908 billion package on December 1. Congress is set to vote on a one-week extension of government funding to buy more time for negotiators to iron out the details of a relief package.
But Democrats and Republicans are continuously clashing on two issues within the deal: First, liability protections for businesses, which is a top GOP priority, and second, local government and state funding, sought by Democrats.
Republican Rep. Tom Reed, co-chairman of a bipartisan group of 50 House lawmakers that endorsed the $908 billion proposal, told the Wall Street Journal Tuesday: “There are still some issues that are outstanding and it’s no secret generally speaking state and local and liability have always been the difficult issues.
“That’s where we stand right now. I think we can get there,” he said.
Sen. John Cornyn, also a Republican, told the Wall Street Journal Tuesday: "It's clear that Democrats want additional state and local money and Republicans by and large are asking for some common-sense liability provisions and those are coupled together."
In a Monday evening meeting, Cornyn suggested excluding both the liability shields and local government and state funding, but said his idea "went over like a lead balloon."
Liability protections
Republicans, in particular Senate Majority Leader Mitch McConnell, have been gunning for a stimulus package to include liability protections for businesses, schools, and hospitals. McConnell lashed out at Democrats over negotiations on Monday.
As part of the $908 billion legislation unveiled December 1, businesses would be shielded from lawsuits on a short-term basis if employees or customers got infected with COVID-19. States would then form their own liability protections, which many have done already, such as Georgia, Iowa, and Kansas, according to the National Law Review.
But many Democrats have raised concerns about the liability shield making businesses more lax in protecting their staff.
"We cannot agree to release employers who have caused their employers to get sick or die from their responsibilities," Sen. Elizabeth Warren said, per the Wall Street Journal.
"COVID cases continue to climb and that means we need employers to be more vigilant, not less."
Democratic Senator Dick Durbin of Illinois and GOP Senator John Cornyn of Texas are working on a compromise for liability protections, according to CNN.
Local and state government funding
The latest $908 billion deal would give states and local governments $160 billion to help them avoid laying off teachers, police officers, and other government workers.
This is far less than what the Democrats originally wanted. Their previously proposed $2.2 trillion deal would have given $179 billion to local governments and $238 billion to states and the District of Columbia.
GOP Sen. Mitt Romney of Utah and Democratic Sen. Joe Manchin of West Virginia are devising a formula for state and local government funding, with possible disbursement caps, CNN said.
The package doesn't include $1,200 direct payments to Americans - but senators said Sunday that stimulus checks could be part of more financial relief introduced after President-elect Joe Biden takes office on January 20.
Coronavirus has hit the US the hardest of any country in the world, with over 15 million infections and more than 283,000 deaths, according to the New York Times COVID-19 tracker.