Pelosi, Mnuchin Hold Extensive Talks   10/01 06:18

   House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin held an 
"extensive conversation" Wednesday on a huge COVID-19 rescue package, meeting 
face to face for the first time in more than a month in a last-ditch effort to 
seal a tentative accord on an additional round of coronavirus relief.

   WASHINGTON (AP) -- House Speaker Nancy Pelosi and Treasury Secretary Steven 
Mnuchin held an "extensive conversation" Wednesday on a huge COVID-19 rescue 
package, meeting face to face for the first time in more than a month in a 
last-ditch effort to seal a tentative accord on an additional round of 
coronavirus relief.

   After a 90-minute meeting in the Capitol, Pelosi issued a statement saying 
the two would continue to talk. "We found areas where we are seeking further 
clarification," she said. Talks resume Thursday.

   "We made a lot of progress over the last few days. We still don't have an 
agreement," Mnuchin said after meeting with Pelosi and briefing top Senate 
Republican Mitch McConnell.

   At the very least, the positive tone set by Pelosi and Mnuchin represented 
an improvement over earlier statements. But there is still a considerable gulf 
between the two sides, McConnell said.

   "I've seen substantial movement, yes, and certainly the rhetoric has 
changed," White House Chief of Staff Mark Meadows said.

   In an appearance on Fox Business Wednesday night, Mnuchin described the 
talks as the first serious discussions with Pelosi in "several weeks" and said 
he is raising his offer into "the neighborhood" of $1.5 trillion. That's well 
above what many Senate Republicans want but would probably be acceptable to GOP 
pragmatists and senators in difficult races.

   After initially saying the Democratic-controlled chamber would vote 
Wednesday night on a $2.2 trillion relief bill --- a debate that would have 
been partisan and possibly unproductive --- Pelosi made an about-face and 
postponed the vote until Thursday in hopes of giving the talks with Mnuchin 
greater breathing room.

   At issue is a long-delayed package that would extend another round of $1,200 
direct stimulus payments, restore bonus pandemic jobless benefits, speed aid to 
schools and extend assistance to airlines, restaurants and other struggling 
businesses. A landmark $2 trillion relief bill in March passed with sweeping 
support and is credited with helping the economy through the spring and summer, 
but worries are mounting that the recovery may sputter without additional 
relief.

   Mnuchin said Wednesday morning that he would tender a new offer resembling a 
plan released a couple of weeks ago by the bipartisan Problem Solvers Caucus. 
That proposal was previously rejected by Pelosi and other top Democrats as 
inadequate. It totals about $1.5 trillion and would provide additional jobless 
benefits if unemployment remains unacceptably high.

   The "top line" limit upon which Pelosi, the Trump administration and Senate 
Republicans might be able to agree has been a subject of considerable 
speculation. Pelosi had drawn a hard line until recently, and talks have 
foundered, but failure now could mean there wouldn't be any COVID relief until 
next year, especially if Trump loses his reelection bid. Pelosi has never had a 
reputation for leaving large sums of money on the table.

   Pelosi and Mnuchin have ramped up talks in recent days but remain far apart. 
The two have worked effectively together in the past and were key forces on the 
"CARES Act" in March, but the bipartisan spirit that drove that measure into 
law has all but evaporated. Neither side has publicly offered the kind of 
concessions that would generate tangible momentum.

   McConnell said the two sides remain "very, very far apart," though he spoke 
before being briefed on the Mnuchin-Pelosi meeting. GOP congressional aides 
said the two sides are not close, even as administration officials like Meadows 
and Mnuchin sounded more optimistic.

   Even if Pelosi and Mnuchin were able to reach a tentative agreement on "top 
line" spending levels, dozens of nettlesome details would need to be worked 
out. A particularly difficult issue, Pelosi told her colleagues earlier in the 
day, remains McConnell's insistence on a liability shield for businesses 
fearing COVID-related lawsuits after they reopen their doors.

   "Let's see if we can get a compromise agreement with the Speaker, something 
that works, and then we'll continue to work with both sides on all the exact 
language and the policies," Mnuchin said earlier.

   Pelosi has sold her latest bill as an attempt to establish a negotiating 
position that might boost the negotiations. A more skeptical take is that the 
Speaker is trying to placate party moderates who protested that she has been 
too inflexible in negotiations and played a role in the collapse of aid talks 
this summer and earlier this month.

   It would revive a $600-per-week pandemic jobless benefit and send a second 
round of direct payments to most individuals. It would scale back an aid 
package to state and local governments to a still-huge $436 billion, send a 
whopping $225 billion to colleges and universities and deliver another round of 
subsidies to businesses under the Paycheck Protection Program. Airlines would 
get another $25 billion in aid to prevent a wave of layoffs that are expected 
this week.

   It also contains $3.6 billion to assist voting during the pandemic, $15 
billion for the Postal Service and additional billions for treatment and 
vaccines.

   The proposal represents a cutback from a $3.4 trillion bill that passed the 
House in May but remains well above what Senate Republicans are willing to 
accept. Republicans have endorsed staying in the $650 billion to $1 trillion 
range.

   The specific numbers are also fuzzy because both sides are using offset 
spending cuts or new tax revenues to pay for part of their respective bills. 
The Congressional Budget Office has not scored either the most recent Senate 
GOP measure or the Democratic plan slated for Wednesday night's vote.