Ever since Majority Leader Mitch McConnell introduced the legislation Thursday night, senators have missed one self-imposed deadline after another to reach a deal. The vote Sunday evening was delayed three hours so talks could continue after it became clear it would fail, but no resolution was reached and it failed anyway. McConnell set another procedural vote for 9.45 Monday morning and dared Democrats to block it, noting repeatedly that the vote would come shortly after the opening of the stock market. “Right now, they’re not there,” President Trump said from the White House with the vote under way. “But I think that the Democrats want to get there. And I can tell you for a fact, the Republicans want to get there. And I don’t think anybody actually has a choice.” Indeed, the sheer magnitude of the potential calamity kept lawmakers at the bargaining table as negotiators on both sides said they must deliver to slow the financial landslide that is disrupting millions of businesses and households by the day.

At the same time, McConnell said it was time for Democrats to “take ‘yes’ for an answer” and accept a bill that he said incorporated many of their ideas. Democrats, though, said McConnell’s bill was tilted too far in favour of corporations and did not include much oversight for $US500 billion in loans and guarantees that could go to firms selected by the Treasury Department. Democrats said that despite some concessions on the part of Republicans, the bill still had too many flaws and did not do enough to shore up the health care system and help average Americans. “Now, let me be clear: the majority leader was well aware of how this vote would go before it happened, but he chose to move forward with it anyway – even though negotiations are continuing, so who’s playing games?” Schumer asked, before adding a hopeful note: “Can we overcome the remaining disagreements in the next 24 hours? Yes. We can and we should. The nation demands it.” “We are at the point where both sides have come a long way towards each other,” McConnell said Sunday on the Senate floor. “And each side has to decide whether to continue elbowing and arguing over the last several inches, and risk the whole thing . . . or whether to shake hands and get it done.” A major sticking point is a $US500 billion pool of money for loans and loan guarantees that Republicans want to create, which some Democrats are labelling a “slush fund” because the Treasury Department would have broad discretion over who receives the money. There is little precedent for a program with a similar size and scope.

Loading The implications for the standoff became more dire as concerns about the economy intensify. Several senators feared the on the markets if they do not reach an agreement by Monday morning. Underscoring the spreading dangers, Senator Rand Paul, on Sunday became the first senator to announce that he had tested positive for COVID-19, the disease caused by the novel coronavirus. He had worked out with fellow lawmakers in the Senate gym that morning. Not long afterward, Republican senators Mike Lee and Mitt Romney announced that they’d be going into self-quarantine because of being in contact with Paul; three other senators had self-quarantined earlier after possible brushes with infected individuals. House Speaker Nancy Pelosi, meanwhile, suggested that House Democrats might chart their own course and release their own bill, which could put the Democratic-led House and the Republican-led Senate on different tracks and delay final agreement on any deal. The White House had expressed hope that a bill could be signed into law by Monday. The sharemarket has lost 10,000 points in six weeks, and some analysts believe more than 3 million people filed for unemployment benefits last week. Much of the US economy is frozen as Americans stay home and cut back on spending, fearful about the coronavirus outbreak. The number of confirmed cases in the US has grown sharply in the past few days, a rise that does not appear to be slowing.

Loading The economic conditions appear to be dramatically worse than first predicted. Federal Reserve Bank of St. Louis President James Bullard told Bloomberg News in an interview Sunday that the unemployment rate could hit 30 per cent between April and June because of mass layoffs, which would be worse than what occurred during the Great Depression. In addition to $US500 giving billion in loans and loan guarantees to businesses, states, and cities, the Senate GOP legislation would appropriate $US350 billion for small businesses that is meant to help prevent more layoffs. It would also send $US1200 cheques to many Americans, bolster the unemployment insurance system, and disburse a broad range of emergency funds to help reinforce hospitals and other areas. The Senate bill would be by far the largest financial rescue ever attempted by Congress, dwarfing legislation passed during the financial crisis of 2008. The bill includes massive funding streams for households and businesses, and prioritising one over the other could cause significant issues in the economy.

For example, the direct payments to households would appropriate $US1200 per qualifying adult and $US500 per child at a cost of about $US250 billion. The cash disbursements in the new agreement would phase out for people with incomes of $US75,000 and above. The legislation also includes about $US100 billion for hospitals and about $US250 billion to beef up state unemployment insurance programs – both major priorities for Democrats. But many other parts of the bill are meant to address problems flagged by companies, many of whom have said they will be forced to scale back much of their operations if they don’t receive aid soon. Democrats have argued that without protections for workers, companies receiving bailout money could fire their employees and pocket the taxpayer assistance, which would undermine the purpose of the federal aid. Republicans have said, though, that the program needs to be up and running immediately to help the economy before it is too late. The dynamic on Capitol Hill partly results from lingering resentments among Senate Republicans over the last coronavirus relief bill, a $US100-billion-plus package enacted last week; it was negotiated between Pelosi and Mnuchin. Many Senate Republicans were unhappy with paid-sick-leave provisions in that bill but voted for it anyway. The enormous package being negotiated is Congress’ third coronavirus relief bill. The first one, enacted this month, appropriated $US8.3 billion for the public health system, vaccine development and other needs.