The Senate plans to vote on the mammoth bill on Wednesday, though full text hasn’t been released. The legislation will provide direct financial checks to many Americans, drastically expand unemployment insurance, offer hundreds in billions in loans to both small and large businesses, and extend additional resources to health-care providers.
“This is a wartime level of investment into our nation,” said Senate Majority Leader Mitch McConnell (R., Ky.) in the early hours of Wednesday after the two sides had reached a deal. “The men and women of the greatest country on Earth are going to defeat this coronavirus and reclaim our future.”
House Speaker Nancy Pelosi (D., Calif.) told reporters Wednesday that she is “optimistic” about the legislation, and said no decision had been made about when the House would try to take up the legislation if it clears the Senate as expected.
The House is expected then to attempt quickly to pass the bill by unanimous consent, a procedure that enables the chamber to approve the legislation without lawmakers being present to vote. An objection from even a single member could slow the process. House lawmakers are currently on recess and scattered across the country.
Treasury Secretary Steven Mnuchin, who has led negotiations on behalf of the White House, said he had spoken to President Trump about the agreement and that Mr. Trump would absolutely sign it as it is written today.
While the final terms of the bill remained under wraps early Wednesday, the legislation is expected to provide for one-time checks worth $1,200 to many Americans, with $500 available to children, with the assistance capped above certain income levels.
Those payments would be in addition to a broad expansion in unemployment benefits, which would be extended to nontraditional employees, including gig workers and freelancers, that Senate Minority Leader Chuck Schumer (D., N.Y.) had pushed for, according to a Democratic aide familiar with the negotiations. The agreement is also set to increase current unemployment assistance by $600 a week for four months.
The Senate is also poised to approve $350 billion in loans to small businesses in an effort to keep Americans on payrolls as economic activity across the country comes to a standstill.
A major challenge in the negotiations was roughly $500 billion in corporate aid, much of which will go toward backstopping Federal Reserve loans. The Treasury Secretary will have the authority to directly lend a slice of those funds, and Democrats had sought to place controls on the money. The agreement will create a new inspector general and oversight board to oversee the aid.
The legislation will also invest $150 billion in the health care system, which is already straining to respond to the quickly expanding number of infections across the country, and send $150 billion to state and local governments saddled with costs related to the virus, Mr. Schumer told Senate Democrats Wednesday morning.
Mr. Schumer said the legislation included a ban on stock buybacks for any company receiving a government loan from the stimulus package. The ban lasts the term of the government assistance plus one year.
Democrats also secured a provision in the agreement that bans businesses controlled by President Trump, the vice president, members of Congress and heads of executive departments from receiving loans or other funds from the stimulus bill. Children and spouses of those people are also banned, according to a senior Democratic aid.
Republican senators appear to be on board with the changes.
“The bill will be very similar to what we proposed a few days ago, but with some more money that is regrettably going to be necessary to respond to this crisis and help keep our people safe. And ultimately get our economy back on its feet,” Sen. Tom Cotton (R., Ark.) said on Fox News on Wednesday.
Once the bill passes the Senate, as expected, it will then go to the House, where Mrs. Pelosi has said that she wants to pass without having to recall members back to Washington from their districts for a floor vote.
Many lawmakers are wary about traveling and being exposed to coronavirus, and several are in self-quarantine and won’t be able to travel. Two House lawmakers and one senator have tested positive for the virus.
House Democrats must still review the bill, and some House Republicans are wary about the bill’s increase in the federal budget deficit and the rushed process by which it was drafted.
Swift passage of the $2 trillion package would be the third time a deeply divided Congress had acted to pass legislation responding to the coronavirus pandemic in recent weeks. Lawmakers also quickly passed an $8.3 billion bill funding vaccine development efforts, among other issues, and a bill expanding paid-leave measures that was estimated to cost more than $100 billion.