US Senate majority leader Mitch McConnell on December 1 2020. Picture: REUTERS/TOM WILLIAMS
The state of the economy, the fast emergence of coronavirus vaccines, pressure from party moderates and Biden’s election all likely influenced the move by Pelosi and Schumer, which was the first real break by either side from long-held positions. The compromise plan would cover a shorter period of time than the leaders’ earlier proposal, providing aid through the winter, with Democrats hoping the Biden administration will help pass another significant relief bill in 2021.
The bipartisan proposal produced signs of cracks in GOP unity as McConnell attempted to produce a plan that all Senate Republicans would support Before the November election, Pelosi had been under pressure from some swing-district Democrats to get some stimulus passed rather than hold out for the huge package the House backed in May. Her position has been weakened by the loss of at least nine Democratic seats in the election, giving Democrats a much narrower majority.
Under that bipartisan proposal, small businesses would get a roughly $300bn infusion for a version of the Paycheque Protection Programme of forgivable loans and other aid, and state and local governments would get about $240bn, including money for schools, according to three people familiar with the proposal.