Congress stuck, McConnell resists state aid in COVID-19 deal

WASHINGTON (AP) — An emerging $900 billion COVID-19 aid package from a bipartisan group of lawmakers has all but collapsed after Senate Majority Leader Mitch McConnell said Republican senators won't support $160 billion in state and local funds as part of a potential trade-off in the deal.

McConnell's staff conveyed to top negotiators Thursday that the GOP leader sees no path to an agreement on a key aspect of the lawmakers' existing proposal — a slimmed-down version of the liability shield he is seeking for companies and organizations facing potential COVID-19 lawsuits — in exchange for the state and local funds that Democrats want.

The GOP leader criticized “controversial state bailouts” during a speech in the Senate, as he insists on a more targeted aid package.

The hardened stance from McConnell, who does not appear to have enough votes from his Republican majority for a far-reaching compromise, creates a new stalemate over the $900-billion-plus package, despite days of toiling by a bipartisan group of lawmakers to strike compromise.

Other legislative pile-ups now threaten Friday's related business — a must-pass government funding bill. If it doesn't clear Congress, that would trigger a federal government shutdown on Saturday.

McConnell’s staff conveyed to other negotiators it’s “unlikely” the trade-off proposed by the bipartisan group would be acceptable, as COVID aid talks continue, according to a person granted anonymity to discuss the talks. A senior Democrat first shared the Republican leader's views after being granted anonymity to discuss the private conversations, which were first reported by Politico.

Deadlines, real and perceived, haven’t been sufficient to drive Washington’s factions to an agreement, despite the U.S. breaking a record-high 3,000 daily COVID fatalities, and...