US lawmakers edge towards agreement on fresh stimulus package

Hopes were growing on Tuesday that Washington could be close to agreeing pandemic relief worth $748bn after a compromise package of fiscal measures was presented by a group of bipartisan lawmakers.

An original package worth $908bn had been struggling to get backing from both Republicans and Democrats. The compromise package, proposed by lawmakers on Monday, strips out two of the package’s most contentious provisions, however, making it worth around $748bn.

The new package includes aid for small businesses, support for education and funding for unemployment benefits, but has stripped out provisions relating to liability protection for businesses, and assistance for states and local governments.

In a statement, Dick Durbin, the Democrat Senate whip, said: “This package does not include everything I think we need. But it is an honest compromise.

“We must provide some emergency relief for the American people before we go home for the holidays.”

Durbin has called on Republican Senate majority leader Mitch McConnell to call a vote on the bill this week.

The Financial Times said that Nancy Pelosi, the Democratic Speaker of the House, had spoken on the phone to Steven Mnuchin, Treasury Secretary, on Monday night. Both reportedly recognised the need to “advance a final agreement…together and quickly this week”, the FT added.

The newspaper also reported that McConnell, in a speech on the Senate floor on Monday, had called for action. “Let’s get this done,” he urged fellow lawmakers.

However, there is still no guarantee the bill will pass, with some Republicans judging that the cost remains too high.