nydailynews.com nydailynews.com 18 Dec, 2020 19:00 am

COVID stimulus stalls as government shutdown looms

COVID stimulus stalls as government shutdown looms
Democrats said Republicans are trying to insert the Federal Reserve-related provision into the stimulus to kneecap President-elect Joe Biden’s incoming administration.

” A senior Democratic aide involved in the stimulus talks said nearly all other snags in the negotiations had been hammered out when Toomey began pressing for the “purely political” provision to scrap the Fed’s lending powers.Brian Deese, Biden’s incoming director of the White House National Economic Council, agreed the Fed lending authority should remain in place.In addition to the wrangling over the Fed’s lending program, there’s some dispute over a pot of Federal Emergency Management Agency cash that Democrats want to include in the package.The Fed program has not been germane in the months-long stimulus talks until this week, and Democrats said Republicans are trying to end it to kneecap President-elect Joe Biden’s incoming administration.

Republicans say that both the Fed program and the FEMA cash could be backdoor ways of appropriating the state and local government budgetary bailouts that they oppose.” Besides the Fed hiccup, leaders from both parties have largely agreed on a stimulus measure in the range of $900 billion that would deliver $600 direct payments to most American taxpayers, provide a federal $300-per-week bonus to the unemployed, cough up more than $300 billion in relief to small businesses and provide cash for COVID-19 vaccine distribution, among other provisions.

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