By Kristina Peterson and Andrew Duehren 

Lawmakers clashed on the Senate floor Thursday over what should be included in the next tranche of relief for the economic devastation wrought by the coronavirus pandemic, with Republicans and Democrats rejecting each other's plans and leaving uncertain when more aid would be approved.

After a brief session, the Senate adjourned without reaching any agreement on additional aid for small businesses and hospitals, among other recipients. Lawmakers from both parties accused their rivals of playing partisan games unfit for the urgency of a crisis.

Democrats blocked an effort by Senate Majority Leader Mitch McConnell (R., Ky.) to add $250 billion to a small-business aid program that saw overwhelming demand when it launched last week with $350 billion in loans. Mr. McConnell said that funding was needed more urgently than other additional funds, such as for hospitals.

Mr. McConnell said his bill made no policy changes, just more spending. "I want to add more money to the only part of our bipartisan bill that is currently at risk of running out of money," he said on the Senate floor. "The country cannot afford unnecessary wrangling or political maneuvering."

But Democrats said the small-business loan program, called the Paycheck Protection Program, needed changes to ensure that less-sophisticated business owners can also access the funds. Small-business owners have flooded banks with applications for the loans, but many have struggled to get funds.

"It's not just in need of more money. It needs some important fixes," Sen. Chris Van Hollen (D., Md.) said on the Senate floor. Sen. Ben Cardin (D., Md.) called the Republicans' proposal a "political stunt."

Republicans in turn then blocked a Democratic proposal to pair modified small-business aid with funding for hospitals, food stamps and state and local governments. Their bill reflected demands issued by House Speaker Nancy Pelosi (D., Calif.) and Senate Minority Leader Chuck Schumer (D., N.Y.) on Wednesday.

The Democrats' proposal would include $250 billion in new funding for small businesses, with $125 billion of that aimed at helping businesses that might have had trouble accessing the initial batch of aid. The Democratic legislation also includes $100 billion for health-care providers, $150 billion in aid to states and local governments, and a 15% increase in food assistance.

"If we want to address the economic crisis, we need to address the health crisis that precipitated that," Mr. Van Hollen said.

Mr. McConnell indicated that he was open to the idea of approving more funding for health-care workers -- but in future legislation, not as part of the next infusion of small-business aid.

"I'm in favor of even more funding for hospitals and providers down the line," Mr. McConnell said. "Nobody thinks this will be the Senate's last word on Covid-19. We don't have to do everything right now."

Because lawmakers have taken an extended break from Washington to prevent the spread of the disease among themselves, Congress would need to pass any bill this week through voice vote or unanimous consent, which individual members can block. Even after the Senate impasse Thursday morning, negotiations on relief legislation were expected to continue.

Treasury Secretary Steven Mnuchin on Thursday said the administration was focused on advancing a narrow bill this week to provide more money for the small-business lending program. The popular program is aimed at helping firms cover payroll and other essential expenses for roughly two months, and the loans can be forgiven if businesses maintain the size of their workforce.

"The president has been very clear, he's happy to talk about other issues such as hospitals and states in the next bill," Mr. Mnuchin said in an interview with CNBC.

President Trump said on Wednesday he wanted the expanded small-business aid to be passed this week.

"I think we have pretty good understanding with the Democrats," Mr. Trump said at the daily White House briefing. "Hopefully it's going to be bipartisan. We do not have the time for the partisan games. We don't want that, the obstruction."

Congress passed and President Trump signed a massive $2.2 trillion relief package less than two weeks ago in the latest in a series of rescue packages a divided Washington has rushed into law. But lawmakers from both parties said the mounting economic toll of the pandemic was prodding them to do more.

"The economic consequences are proving to be more severe more quickly than just about anybody had predicted," said Sen. Josh Hawley (R., Mo.), who has been pushing a plan to restore workers' paychecks by having the government cover 80% of employers' payroll costs, up to the national median wage, at all firms affected by the crisis.

Kate Davidson contributed to this article.

Write to Kristina Peterson at kristina.peterson@wsj.com and Andrew Duehren at andrew.duehren@wsj.com

(END) Dow Jones Newswires

April 09, 2020 12:39 ET (16:39 GMT)

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