Trump, Congress Reach Deal To Prevent Government Shutdown, But COVID-19 Relief Package On Hold

U.S. Vice President Mike Pence said the Trump administration and Congress have reached an agreement to avoid a shutdown by temporarily funding the government at present federal spending levels.

However, the agreement does not include measures to provide relief from the COVID-19 pandemic, which will be negotiated later.

“Now, we can focus just on another relief bill, and we’re continuing to do that in good faith,” Pence told CNBC.

Congress must pass legislation by the end of September or else government funding will lapse. CNBC noted that some congressional leaders may seek to include COVID-19 relief measures in the spending bill in order to kickstart talks on a new stimulus package that have stalled. Democrats and the White House remain about $1 trillion apart in how much they want to spend in the next stimulus package.

In addition, Democrats want to approve more than $900 billion in aid to cash-starved state and local governments, while the Trump has countered with a $150 billion offer.

The National Governors Association has requested at least $500 billion more in state and municipal aid, warning that without such funds they may have to cut essential services.

“The failure of Congress to reach a compromise on a new coronavirus relief package imperils the ability of state and local government to maintain sound operations and critical services for residents, and puts jobs further at risk for the 15 million public servants carrying out services on the ground ranging from health care to education to public safety,” NGA stated.

“The lack of action would lead to massive cuts to the very services that are sustaining millions of Americans during the pandemic and recession, and that are necessary for a rapid and sustainable recovery. State and local governments aren’t seeking a bailout. They are seeking fiscal stabilization to immediately address revenue shortfalls caused by emergency measures enacted at every level of government to contain the spread of COVID-19.”

But Pence fought back.

“We’re not going to allow Democrats in Congress to use a coronavirus relief bill to bail out poorly run Democratic states,” Pence said. “Nobody wants to give direct payments to American families more than Donald Trump again.”

Pence also praised Friday’s jobs report which said the economy added almost 1.4 million jobs in August, while the jobless rate fell to 8.4%.

Pence said it was “real evidence that the American comeback is underway.”

Trump himself tweeted: "Great jobs numbers! 1.37 million jobs added in August. Unemployment rate falls to 8.4% (Wow, much better than expected!). Broke the 10% level faster and deeper than thought possible."

But Senate Minority Leader Chuck Schumer, D-N.Y. – one of the leading Democrats at odds with Trump —posted on Twitter: “8.4% unemployment is nothing to brag about.”