UPDATED: 12 p.m.
PHILADELPHIA (KYW Newsradio) -- President Donald Trump, who is recovering from the coronavirus, abruptly ended talks with House Democrats on another COVID-19 economic relief package on Tuesday. Hours later, he called on Congress to act on individual measures, including a bill authorizing another round of stimulus checks.
As the political back-and-forth carries on, a lot of people hit hard economically during the pandemic are waiting for help to pay for rent and other bills. Small businesses are looking for more payroll relief, and the major airlines are looking to bring back thousands of furloughed workers.
But the already fragile talks between House Democrats and the White House screeched to a halt on Tuesday. President Trump, whose Twitter account has been on rapid fire since he left Walter Reed Medical Center to recover from COVID-19 at the White House, tweeted that Speaker Nancy Pelosi was “not negotiating in good faith” when she rejected the administration's initial $1.6 trillion stimulus proposal.
“I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” the president added.
“President Trump has shown his true colors,” Pelosi later tweeted. “Walking away from coronavirus relief negotiations and refusing to give real help to poor children, the unemployed, and America’s hard working families.”
Earlier in the pandemic, the stimulus checks for individuals and families, payroll support for companies, and extra unemployment cash all helped keep the economy afloat, says Joel Naroff of Naroff Economic Advisers in Bucks County.
“It has really been the lifeline for both households and businesses,” he said.
But with that money drying up, Naroff says Congress and the president need to act. Even though the economy has recovered to a degree, it still needs a shot in the arm.
“And the political games being played are really doing a disservice to all of those households and businesses that are trying to keep things going right now,” Naroff said.
For those concerned about adding trillions to the deficit, Naroff says only the government right now can give the economy the boost it needs to keep the recovery moving.
“Growth is coming back. The economy is coming back. It’s got a long way to go,” Naroff said. “It could take another two years or more before we get back to where it was before the pandemic hit, and that’s why the stimulus is needed right now."
House Democrats passed a $2.2 trillion relief bill last Thursday. It is a scaled down version of the HEROES Act that they passed in May that would have cost over $3 trillion. One aspect keeping both sides apart is Democrats wanting to set aside a chunk of the money for cities and states. Their latest proposal would give $238 billion for states and the District of Columbia and $179 billion for local governments. President Trump tweeted the money would go to "poorly run, high crime, Democrat states."
Naroff says that money is necessary to save more jobs.
“You’ve got teachers and police and fire and people providing welfare programs to take care of kids and all sorts of things that are absolutely needed,” he said.
After the president tweeted about halting negotiations, the stock market went from green to red. His tweets came hours after Federal Reserve Chairman Jerome Powell, speaking at a National Association of Business Economics conference, spoke about the need for more stimulus money to boost the economy.
“Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” Powell said.
House Democrats from Pennsylvania, including Brendan Boyle and Dwight Evans, were critical of the call to end negotiations as well.
But then, Tuesday night, the president tweeted that Congress should act.
“The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!”
He also tweeted that he would sign a stand-alone bill for stimulus checks.