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House Democrats Close In on New Stimulus Proposal

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House Democrats are putting the finishing touches on their next legislative response to the coronavirus pandemic, a package that will propose another massive round of aid just as President Trump and Senate Republicans are urging caution on quickly passing new spending.

The bill being drafted by Democratic leadership is expected to include more than $750 billion in aid to state and local governments, as well as another round of direct support to Americans, according to interviews with lawmakers and aides. Leaders also say they are interested in extending enhanced unemployment benefits, but haven’t provided specifics.

House Democrats also want to increase access to coronavirus testing, send money toward vote-by-mail programs and the Postal Service, provide safety protections for front-line workers who are at risk of contracting and spreading the virus, and expand Americans’ access to broadband. They hope to have the bill ready next week.

House Speaker Nancy Pelosi (D., Calif.) said she had not talked with Republicans or the administration about the House’s wish list, but she said she hoped many of the proposals in the bill would draw bipartisan support.

“We’re not drawing any red lines in the sand or anything like that,” she said.

Senate Majority Leader Mitch McConnell (R., Ky.) has taken a wait-and-see approach on new funding, after Congress passed more than $3 trillion in aid in a matter of months, responding to deep layoffs across the economy. He has called liability protections for businesses his central demand in new talks.

“What I want to make very clear to them, is that if there is another rescue package, it must include and will include liability protections related narrowly to the coronavirus pandemic,” he said on Fox News. “That will have to be a part of any rescue package.”

Meanwhile, Mr. Trump is seeking payroll-tax cuts and other tax relief, an idea panned by members of both parties in Congress.

Mrs. Pelosi is assembling the House bill based on feedback from committees, which had until this week to submit proposals, according to House Democratic aides. The Senate returned to Washington on Monday, but the House remains out, and Democratic leadership told lawmakers that they will receive notice once a bill is ready.

Democrats have been unable to come to a bipartisan agreement with House Republicans on changing the rules to allow remote practices, and Mrs. Pelosi said they plan to vote to allow proxy voting for lawmakers unable to attend in person. GOP lawmakers have called on Mrs. Pelosi to create a plan for the House to return to Washington before addressing new funding.

“We can debate the amount, that’s always part of the debate, but number one we need to get back to Congress,” said Rep. Rodney Davis of Illinois, the top Republican on the House Administration Committee.

In introducing their own legislation, Democrats are allowing more members to have a say in the legislation. Many lawmakers see a narrowing window of opportunity to get bills through the divided Congress, which passed earlier rounds of aid largely by bipartisan consensus.

“It’s getting harder and harder to do these packages, so the idea that we’re not going to do something bold now is really problematic because we don’t know when the next one will be,” said Rep. Pramila Jayapal (D., Wash.), the co-chair of the Progressive Caucus. “The scale of devastation has gotten to epic proportions already,” she said.

She is calling for guaranteeing workers’ wages for three months, up to an annual salary of $100,000 a worker.

House Education and Labor Committee Chairman Bobby Scott (D., Va.) said he wants future legislation to extend student-loan forbearance and cover health-insurance costs when people lose employment.

While a lengthy wishlist of progressive ideas would stand little chance in the GOP-controlled Senate, some Republicans have signaled support for income guarantees or other household aid, and there are other areas that could draw some GOP backing, including state and local aid, which is seen as a way to avoid layoffs for police, firefighters and teachers.

“Our state and local governments have been laying it all on the line,” said GOP Rep. Lee Zeldin, whose New York district has seen tens of thousands of coronavirus cases. “The expenses are high, the revenue impacts are even greater and additional support is needed as a matter of survival.”

“If we’re talking about revenue replacements for local governments for essential services, I do think that’s a valid area of conversation,” said Sen. Marco Rubio (R., Fla.) on Fox News. Like Mr. McConnell, he said any aid shouldn’t be used to bail out poorly run pension plans.

Legislation passed in March gave $150 billion to states and cities with populations over 500,000 people, but limited its use to coronavirus response. Mrs. Pelosi said last week the Democratic bill will have $500 billion requested by Democratic and Republican governors and several hundred billion for local governments.

Further support could be given to states through programs that would give state and local governments federal subsidies they could use to cover a portion of the interest payments on taxable bonds, reprising a program Democrats created during the previous recession, according to House Ways and Means Chairman Richard Neal (D., Mass.). Mr. Neal and Mrs. Pelosi have also said they would be open to sending more direct payments to Americans.

On another front, Majority Whip Jim Clyburn (D., S.C.) has proposed new spending to expand broadband access for remote working and schooling, especially in rural communities.

“The Covid-19 crisis has demonstrated the absolute disparity that exists between some communities and others as it relates to their level of connectivity,” said Rep. Abigail Spanberger (D., Va.).

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