Trump increases coronavirus stimulus offer to $ 1.8 trillion

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The White House will accept a $ 1.8 trillion coronavirus stimulus offer to Democrats as parties work to secure a deal ahead of the 2020 election, a source told CNBC.The plan would mark an increase from the $ 1.6 trillion previously offered by the Trump administration. House Democrats passed a $ 2.2 trillion bill earlier this month, and parties have struggled to find consensus between those numbers.

On Friday afternoon, Trump’s economic adviser Larry Kudlow, director of the National Economic Council, said the president had approved a “revised” package ahead of another scheduled discussion between Treasury Secretary Steven Mnuchin and the Speaker of the House of the Nancy Pelosi communes. In a tweet, Trump urged negotiators to “Go Big! ”

Congress still faces several hurdles in crafting and passing pandemic relief legislation. Even though the White House and Democrats can come to an agreement on how much to put into a struggling health care system and economy, they must craft a bill that can go through the Republican Senate.

Earlier on Friday, Senate Majority Leader Mitch McConnell said another stimulus package was “unlikely in the next three weeks.” He focused on confirming Supreme Court candidate Amy Coney Barrett ahead of the election, and the Senate has set a confirmation hearing for Monday.

To find a deal, Republicans and Democrats would have to quickly resolve several issues that have seemed intractable during months of fruitless talks. Pelosi has insisted on at least $ 436 billion in aid for cash-strapped state and local governments, while Trump has resisted sending them more than the $ 150 billion they received earlier this year.

Democrats want to restore improved federal unemployment insurance to $ 600 a week until January. Mnuchin last offered an additional benefit of $ 400 per week.

Other areas of conflict include tax credits and food aid.

After Pelosi and Mnuchin resumed talks on a deal earlier this week, Trump suddenly told his administration to withdraw from the talks. After the stock market was hit in response to the president’s withdrawal from negotiations, Trump turned the tide of negotiations and urged Congress to pass direct payments, small business loans, and airline aid to cover the mass. salary.

Congress has failed to send new relief funds for months as America’s healthcare system retreats to a raging epidemic. The country reported more than 56,000 new infections on Thursday, the highest level in a single day in nearly two months.

While millions of Americans remain unemployed, the lifelines to support them through economic shutdowns earlier this year have expired in recent months. Supplementary UI and a federal moratorium on evictions have ended, as has the Paycheck Protection Program small business loan application window. Trump signed executive orders that temporarily sent additional unemployment benefits to some Americans and extended assistance with student loans.

Unemployment claims in the United States remain stubbornly high as hiring begins to slow. Airlines and other big American companies have opted for the leave or layoffs of tens of thousands of workers.

This week, Federal Reserve Chairman Jerome Powell urged Congress to pass more fiscal stimulus, saying failure to do so could “lead to a weak recovery, creating unnecessary hardship for households and businesses. “. He said Congress had a limited risk of “over-doing” relief.

– CNBC’s Ylan Mui contributed to this report.

– Disclosure: Larry Kudlow is a former CNBC contributor.

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