BEDMINSTER, N.J. (Reuters) – President Donald Trump on Saturday plans to sign an executive order intended to provide economic relief to Americans hurt by the coronavirus pandemic after the White House failed to reach a deal with Congress, a White House source said.
“Amid congressional inaction, POTUS will be taking action to help Americans in need,” the official told Reuters. Trump is due to give a news conference at his New Jersey golf club at 3:30 p.m. ET (1930 GMT).
Nearly two weeks of talks between White House officials and congressional Democrats ended on Friday with the two sides still about $2 trillion apart on next steps to address the heavy human and economic toll the coronavirus pandemic has taken on the United States, where it has killed more than 160,000 people.
A $600 per week increase in unemployment payments that has served as a lifeline to the tens of millions of Americans who lost their jobs in the pandemic expired at the end of July. Democrats wanted to extend the payments at that amount, while Republicans wanted to cut them, saying they served as a disincentive to return to work.
Trump on Friday night said he would sign executive orders to extend enhanced unemployment benefits, unilaterally suspend payroll taxes, suspend student loan repayments and rental housing evictions in the coming days.
Trump initially played down the disease’s threat and has drawn criticism for inconsistent messages on public health steps such as social distancing and masks.
House of Representatives Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer on Friday offered to reduce a proposed $3.4 trillion coronavirus aid package, which the House passed in May but the Senate ignored, by nearly one-third if Republicans would agree to more than double their $1 trillion counter-offer.
White House negotiators Treasury Secretary Steven Mnuchin and Chief of Staff Mark Meadows rejected the offer.
Senate Majority Leader Mitch McConnell’s $1 trillion package unveiled late last month ran into immediate opposition from his party, with as many as 20 of the Senate’s 53 Republicans expected to oppose it.
Possible Court Challenge
Democrats have already warned that such executive orders are legally dubious and would likely be challenged in court.
While Trump had repeatedly floated the idea of executive orders to push relief, Schumer on Friday said the White House team had acknowledged that power was limited.
“The other choice is for them to do executive orders which by their own admission, they said it to us repeatedly is not close to as good,” Schumer said. “It doesn’t cover opening of schools. It doesn’t cover testing. It doesn’t cover dealing with rental assistance. It doesn’t cover elections. It doesn’t cover so many things.”
The U.S. Constitution gives Congress authority over federal spending, so Trump does not have the legal authority to issue executive orders determining how money should be spent on coronavirus.
But a court fight could take months, and Trump has managed to sidestep Congress on spending before, declaring a national emergency on the U.S.-Mexico border to shift billions of dollars from the defense budget to pay for a wall he promised during his 2016 election campaign.
Congress passed legislation to stop him, but there were too few votes in the Republican-controlled Senate to override his veto — a scenario that would likely play out again with less than 90 days to go before the Nov. 3 presidential election.