Next virus aid package could easily swell past USD 1 trillion

The price tag for the next COVID-19 aid package could quickly swell above USD 1 trillion as White House negotiators negotiate with Congress over money to reopen schools, prop up small businesses, boost virus testing and keep cash flowing to Americans while the virus crisis deepens in the US.

The price tag for the next COVID-19 aid package could quickly swell above USD 1 trillion as White House negotiators negotiate with Congress over money to reopen schools, prop up small businesses, boost virus testing and keep cash flowing to Americans while the virus crisis deepens in the US. Senate Majority Leader Mitch McConnell on Tuesday promised a new round of direct payments to earners below a certain income level, similar to the USD 1,200 checks sent in the spring. President Donald Trump insists on a payroll tax holiday for workers. And Democrats want billions to outfit schools and shore up local governments.

Treasury Secretary Steven Mnuchin and acting chief of staff Mark Meadows conferred privately with GOP senators before preparing to meet with House Speaker Pelosi and Senate Democratic leader Chuck Schumer. Trump's team is trying to broker a compromise between the GOP's emerging USD 1 trillion proposals with the House's more sweeping USD 3 trillion bills. Meadows told reporters the president wants to ensure the funding package "meets the legitimate needs that are before the American people." With the pandemic showing no signs of easing, officials acknowledge the daunting challenge of trying to contain the coronavirus and prevent further economic distress. The U.S. has rising infections and a death toll of 140,800, more than anywhere else in the world. The health crisis is worsening just as emergency aid is about to expire.

McConnell said Washington must develop a strategy to safely reopen schools and businesses until a vaccine can be found. "We need to carve out a new normal," the Republican leader said.

McConnell is poised to roll out the USD 1 trillion GOP proposal, a counter-offer to Pelosi's USD 3 trillion House-passed plan as they race to strike a deal by the end of the month. That's when a USD 600 weekly unemployment benefits boost and other aid, including a federal rental moratorium on millions of apartment units, expires.