WASHINGTON—Stalled negotiations over coronavirus relief leapt back to life Tuesday, as Democratic and Republican leaders prepared new, competing aid proposals and a bipartisan group released its own compromise framework.
Senate Majority Leader Mitch McConnell (R., Ky.) said he circulated a fresh GOP proposal to his caucus reflecting what kind of Covid-19 relief President Trump would be willing to sign into law in the waning days of his administration, after speaking with White House officials.
The new GOP offer, similar to the last Senate GOP bill, includes more funding for small businesses, legal protections for entities operating during the pandemic and a one-month extension of expanded unemployment insurance programs that expire at the end of December. It doesn't include additional funding for state and local governments, a priority of Democrats.
"I hope this is something that would be signed into law by the president, be done quickly, deal with the things that we can agree on now," Mr. McConnell told reporters. He also nodded to the possibility of more aid proposals next year under the incoming Democratic administration of President-elect Joe Biden.
On Monday night, House Speaker Nancy Pelosi (D., Calif.) and Senate Minority Leader Chuck Schumer (D., N.Y.) sent a letter to Mr. McConnell outlining Democratic leaders' latest offer.
Mr. Schumer declined to give details of the proposal, saying it was intended to revive bipartisan negotiations. He said the bipartisan proposal outlined earlier Tuesday was a positive step toward compromise and criticized Mr. McConnell for pursuing another Republican proposal.
"The obvious fact of the matter is the biggest impediment to getting an agreement is the Republican leader refusing to negotiate in a bipartisan way," Mr. Schumer said.
Earlier Tuesday, a group of lawmakers from both the House and Senate unveiled a $908 billion aid proposal, seeking a middle ground between Democratic and Republican leaders' stances.
"We simply can't leave town and leave anyone in the cold, without getting something done immediately," said Rep. Josh Gottheimer (D., N.J.), co-chair of the bipartisan Problem Solvers Caucus, which has endorsed the proposal.
Mr. Mnuchin told a Senate hearing Tuesday that the White House and GOP leaders were interested in further relief, but didn't provide a target. Mr. Mnuchin said he had spoken in recent days with Mr. Trump, Mr. McConnell, House Minority Leader Kevin McCarthy (R., Calif.) and White House chief of staff Mark Meadows about aid.
"We all believe there should be targeted fiscal response," he said.
Federal Reserve Chairman Jerome Powell repeated his view Tuesday that additional government spending would support a more durable economic recovery. "We can see what may be the light at the end of the tunnel with the vaccines," he said at the Senate hearing. "Some fiscal support now would really help move the economy along as well."
The new bipartisan proposal highlighted the growing pressure from rank-and-file lawmakers to pass additional coronavirus aid as the pandemic surges nationwide. Lawmakers said they had communicated with congressional leaders and the White House about the proposal, but hadn't received any assurances that their plan would receive a vote.
A previous $1.5 trillion proposal from the Problem Solvers Caucus in September helped restart talks in the fall, though they later stalled as the election approached.
The proposal unveiled Tuesday, which would run through March 2021, includes some measures sought by both parties. Lawmakers included $160 billion in state and local funding—long one of the biggest sticking points in talks among congressional leaders.
Democrats and Republicans from a handful of states had pushed for additional relief for state and local governments, which President Trump has derided as a bailout for states led by Democrats.
The bipartisan proposal also nods at one of Republicans' top priorities: legal protections for businesses and other entities operating during the pandemic. Lawmakers said they would provide a short-term suspension of liability lawsuits related to Covid-19 at the state or federal level, giving states time to put in place their own protections.
The proposal also includes $288 billion for small-business relief, including the Paycheck Protection Program, $16 billion for the distribution of a coronavirus vaccine, $82 billion for schools, $25 billion for rental assistance and $180 billion for additional unemployment insurance, including $300 a week through March, aides said. In addition, the plan would give $17 billion to airlines.
Republicans said they had worked to keep the overall cost in check, after GOP lawmakers balked at the size of Democrats' previous proposals.
"We've been very careful. This is not a $1.8 trillion stimulus bill," Sen. Mitt Romney (R., Utah), part of the bipartisan group, said Tuesday. "This is a relief measure—half that amount."
Other members of the bipartisan group include Republican Sens. Susan Collins of Maine, Bill Cassidy of Louisiana, Lisa Murkowski of Alaska and Democratic Sens. Joe Manchin of West Virginia, Mark Warner of Virginia and Jeanne Shaheen and Maggie Hassan of New Hampshire.
On the House side, supporters include GOP Reps. Fred Upton of Michigan and Tom Reed of New York, in addition to Democratic Reps. Abigail Spanberger of Virginia and Dean Phillips of Minnesota, among others.
The renewed efforts on Covid-19 relief are driven in part by the looming expiration of aid provisions from bills passed earlier this year. Those include broadened unemployment insurance coverage as well as expanded paid sick and family leave.