Stimulus talks break down as millions lose extra benefits

The Senate is heading home until after Labor Day with no stimulus deal in sight. Yahoo Finance’s Alexis Christoforous, Brian Sozzi and Jessica Smith have the latest.

Video Transcript

ALEXIS CHRISTOFOROUS: Now, of course, the Senate is heading back home now, not going to return to Washington until after Labor Day. And that means the stimulus talks have hit an impasse. The White House says Democrats rejected reasonable compromises, while the Democrats say the Trump administration was only offering short-term extensions.

Our DC correspondent Jessica Smith is here with us now. And Jess, amid all this bickering you still have some 30 million Americans having lost those expanded unemployment benefits. Is there any sense, do you get here, that there is urgency with the situation?

JESSICA SMITH: Lawmakers say there is a sense of urgency. But at this point, negotiators aren't even meeting. They have not been able to work anything out over the past couple of weeks here. And both sides say they are still very far apart. There are vast differences in each of their proposals.

Now, Majority Leader Mitch McConnell said yesterday that he would call senators back if there is a deal. He'd give them 24 hours notice before a vote. The same goes for the House. So we'll see if there is any movement here in the coming weeks. But you'll remember, conventions are starting next week. So that's really going to take up a lot of lawmakers' attention.

Here's Majority Leader Mitch McConnell yesterday, followed by House Speaker Nancy Pelosi.

MITCH MCCONNELL: Coronavirus is not finished with our country. So Congress cannot be finished helping our people. Republicans have been waiting and trying to pass bipartisan relief literally for weeks. I would hope our Democratic colleagues will let the Senate sometime soon.

NANCY PELOSI: American people don't want this uncertainty. You're always there to give certainty to the markets. Let's give some certainty to America's working families. So we can't wait until September 30. I know some have said, well, this will-- but people will die.

JESSICA SMITH: Alexis, you heard Majority Leader McConnell saying there that Republicans were ready to pass legislation. They were waiting on Democrats. I think it's worth noting that Democratic lawmakers in the House did pass a bill in May. And Senate Republicans did not introduce a plan until the very end of July.

ALEXIS CHRISTOFOROUS: Yeah. There was a big gap there. Jess, there are also concerns that these stimulus negotiations could run up against that looming government shutdown deadline. We'll have to deal with that as we move closer to the election.

JESSICA SMITH: Right. You heard Speaker Pelosi mention there September 30. This couldn't wait until September 30. That is the end of the fiscal year. And that's when Congress needs to pass a bill to fund the government. And I think everyone can agree that a government shutdown in the midst of a pandemic, in the midst of an economic crisis, could have devastating consequences. So lawmakers will have a lot on their plate, a lot to get done, when they get back in September.

ALEXIS CHRISTOFOROUS: Devastating is the word. Jessica Smith, thank you.