Republican and Democratic Senate leaders said Sunday afternoon they had resolved some of the latest outstanding issues in the form of a year-end coronavirus deal and omnibus spending package, including a battle to deduct small business loans and providing scholarships to private schools.
“Finally we have the two-pronged breakthrough the country needs. Now we probably need to finalize the text and avoid last-minute obstacles and work together to get this legislation through both houses, “Senate Majority Leader Mitch McConnell
Addison (Mitch) Mitchell McConnell Senators Reach Deal Over Fed Powers, Paving the Way for Coronavirus Aid Passage Coronavirus Aid Deal Hinges on Talks Over Fed Lending Powers Senate GOP Absences Hook Trump Nominees MORE (R-Ky.) Said on the Senate floor.
McConnell noted that the legislation would provide for another round of $ 600 incentive checks, money to distribute the coronavirus vaccine, and “billions and billions of dollars to help children. [get] back to school and do it safely. “
He said the legislation will repurpose more than $ 560 billion in money set aside by the CARES law in March but not spent.
Minority leader in the Senate Charles Schumer
Chuck Schumer Senators agree on Fed powers and pave the way for coronavirus emergency Coronavirus deal hinges on talks over Fed lenders Ocasio-Cortez: I’m ‘not ready’ to be speaker, but Pelosi Schumer must go MORE (DN.Y.) confirmed on Sunday shortly before 6 p.m. that the deal was done and that the deal would have enough votes to pass both houses.
“The agreement on this package can be summed up with the phrase ‘better late than never’,” he said. “After a long and difficult year, after a year of bad news, we finally have some good news for the American people.”
“It will provide emergency relief to a country in real emergency. It should have the votes to pass the Senate and the House and reach the president’s office to become law, ”he said.
Government funding runs up at midnight and House Majority Leader Steny Hoyer
Steny Hamilton HoyerCongress Heads Towards Veto Clash With Trump Congress Approves Bill To Avert Closure As Coronavirus Talks Drag Over The Weekend House Passes Two-Day Emergency Bill To Prevent Closure MORE (D-Md.) Told Democratic colleagues in a conference call that the House will make a one-day funding freeze.
Hoyer said the House will only vote on short-term extension of government funding on Sunday.
Democratic leaders had earlier in the day expressed hope that they would adopt the combined coronavirus emergency relief deal and a $ 1.4 trillion omnibus spending package Sunday night.
But with regular lawmakers still waiting for the text of the deal late Sunday afternoon, leaders decided to postpone the vote.
Senate Majority Whip John Thune
John Randolph ThuneCongress Begins Veto Clash With Trump Lawmakers Expect COVID-19 Deal Soon McConnell: ‘Collaboration and Focus’ Needed To Complete COVID-19 Deal MORE (RS.D.) said negotiators reached an agreement on a dispute over allowing federal scholarship education resources to private schools.
Thune said companies that have received Paycheck Protection Program (PPP) small business loans can deduct them as negotiators expected when Congress passed the CARES law in March.
He clarifies that deductibility of PPP loans for small businesses is allowed.
Democrats achieved some significant victories in the deal, presented by Speaker Nancy Pelosi
Nancy PelosiSenators Agree on Fed Powers and Pave the Way for Coronavirus Emergency Passage Sunday Shows Preview: US Rolls Out First Doses of Coronavirus Vaccine; Congress Secures Incentive Deal Lawmakers Expect MORE COVID-19 Aid Agreement Soon (D-Calif.) And Schumer touted Sunday.
The package includes legislation to end unexpected medical billing for emergency and scheduled care, $ 25 billion in much-needed rental assistance for evicted families, an enhanced income tax credit, and a child tax credit for unemployed families. or lower wages.
It also provides a $ 13 billion increase in the Supplemental Nutrition Assistance Program and an extension to Pell Grants for students who need help paying for their studies.
Major lawmakers on both sides of the aisle, such as the chair of the Senate Finance Committee Chuck Grassley
Chuck Grassley Hillicon Valley: Lawmakers ask if mass hacking amounts to act of war | Microsoft says systems have been exposed to massive SolarWinds hack | Senators Urge To Keep Technical Liability Screens Out Of U.K. Trade Deal Senators Urge To Keep Technical Liability Screens Out Of U.K. (R-Iowa) and rank member Ron Wyden
Ronald (Ron) Lee WydenHillicon Valley: Google Has Another Antitrust Lawsuit By States | Federal government finds evidence hackers have used multiple methods to gain access to agent networks | Energy Dept., Nuclear Agency Violated As Part Of Massive Cyber Attack: Senators Report Request IRS Briefing On SolarWinds Hack Schiff Calls For ‘Urgent’ Work To Defend Nation After Mass Cyber Attack MORE (D-Ore.), Have said their intent was in the CARES Act to make the expenses tax-deductible.
But the Treasury Department issued guidelines earlier this year that the expenses are not deductible because PPP loan cancellations are not considered taxable income. Minister of Finance Steven Mnuchin
Lawmakers soon expect COVID-19 deal McConnell: ‘Collaboration and focus’ needed to finalize COVID-19 deal Member of monitoring committee asks Treasury Department approval of 0M loan to shipping company MORE had defended the department’s position, saying that allowing deductibility would amount to double immersion. Some progressive groups were also against making the expenses deductible, saying this would help especially wealthy individuals.
Thune said the “deductibility issue will be allowed as, I think, was understood as the law when we passed the PPP program at all”.
Thune said lawmakers are sympathetic to Mnuchin’s argument about tax policy, but that “in getting those PPP loans, most people had the expectation that they would be able to continue deducting their operating expenses and acted accordingly.”
“I think there is broad support on both sides to include that,” he added.
Mike Lillis contributed.