Mnuchin says Trump still wants virus deal with Democrats
WASHINGTON — Pressed by Democrats to quickly negotiate a new coronavirus relief package, Treasury Secretary Steven Mnuchin said Tuesday the administration remains willing to work on a bipartisan agreement to help small businesses, the unemployed, children and schools. Democratic leaders in Congress are holding it up with hardened positions, he said.
“Let’s move forward on a bipartisan basis on points we can agree upon,” Mnuchin urged at a hearing by the House Select Subcommittee on the Coronavirus Crisis. “The president and I want to move forward.”
Mnuchin made the case that the economy’s recovery has strengthened in recent weeks, citing improved consumer spending, growth in manufacturing and a rebounding housing market. It’s the failure of some states to reopen activity that is holding back the economy, he said.
But Democrats insisted that dire economic conditions persist for many. “Millions of Americans are now facing eviction, debt and hunger,” said the panel’s chairman, Rep. James Clyburn, D-S.C. “As the pandemic drags on, states, cities and businesses are warning that more layoffs may be coming.”
The subcommittee’s Democratic staff, meanwhile, said it has identified lapses pointing to possible fraud and abuse in a signature piece of the administration’s relief effort, the $660 billion-plus small business loan program — including more than $1 billion awarded to businesses that received multiple loans.
The staff investigators said in a report that a lack of government oversight and accountability for the program “may have led to billions of dollars being diverted to fraud, waste and abuse, rather than reaching small businesses truly in need.”
Mnuchin identified additional spending on aid to small businesses as the area where Democrats and Republicans are most likely to agree. In sometimes sharp exchanges, he and Democrats on the panel disagreed over the state of the economy and traded blame for the impasse over new rescue legislation.
Mnuchin pinned the blame on a refusal to compromise by House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer. While touting the economy’s partial recovery, he acknowledged that “we have more work to do.”
Still, Mnuchin showed some openness to negotiating and even agreed, under prodding from Rep. Maxine Waters, D-Calif., to phone Pelosi right after the hearing.
He said he doesn’t support the Democrats’ position for $2.2 trillion in spending in the next package, which contrasts with Republicans’ stance of $1 trillion. He added, however, “What’s more important is ... getting money to American workers, American families, kids. There are tremendous areas of agreement, and that’s what we should be doing right away.”
