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Mitch McConnell. Photo: Drew Angerer/Getty Images

After days of intense negotiations, talks between Capitol Hill leaders and the White House over a Phase 3 stimulus package to fight the coronavirus broke down on Sunday, leading to a failed cloture vote meant to move the bill forward.

Why it matters: The emergency legislation, which is expected to be one of the largest and most expensive stimulus packages in American history (it could grow beyond $2 trillion), would deliver desperately needed aid to American families, small businesses and corporations hit hardest by the virus.

  • But Democrats say Republicans aren't giving them enough to support the costly measure, diminishing hopes that a final vote would take place on Monday.

The latest: Senate Majority Leader Mitch McConnell led a meeting this morning with Treasury Secretary Steven Mnuchin, Minority Leader Chuck Schumer, House Speaker Nancy Pelosi and House Minority Leader Kevin McCarthy to hammer out the sticking points.

  • But Democrats left the meeting protesting that the bill is a corporate slush fund that doesn't do enough to protect workers from layoffs, gives the Treasury too much power to make its own decisions, and doesn't provide any money for state and local governments, among other complaints.
  • McConnell then pushed a 3pm vote on a motion to proceed — which requires 60 votes — to 6pm, giving the two sides more time to negotiate.
  • After a series of additional talks, the cloture vote failed along party lines 47-47, forcing the group back to the negotiating table.

Details: The deal — as it stands currently — dedicates $250 billion to go directly to Americans. Many individuals will receive $1,200 direct deposits, along with an additional $500 for each child. A family of four would receive $3,000. That money begins to phase out for Americans making more than $75,000 per year.

  • The package allots $350 billion to small businesses to help keep workers on payroll. Mnuchin said this morning that these "small business retention loans" will be forgiven.
  • The deal offers 39 weeks of unemployment insurance to eligible workers, retroactive to Jan. 27.
  • It also includes $242 billion for public safety net programs, including more money for SNAP, child nutrition and the Centers for Disease Control. Hospitals will get roughly $110 billion, according to Mnuchin.
  • The original Phase 3 bill text called for $208 billion in loans to airlines and other industries, which would have to be repaid. This number may still change.

What's next: McConnell will continue to work with Democratic leaders and the White House to reach a deal that will win enough Democratic votes to pass.

  • One the bill passes the Senate, members of the House, who have been on recess for over a week, will try to pass it via unanimous consent. If that fails, they may be forced fly back to Washington.
  • There have already been early talks of a Phase 4 deal, according to senior Senate and House aides.
  • There are no specifics yet, but Mnuchin said this morning that the legislation would provide relief for 10–12 weeks — a time frame that falls short of expectations laid out by public health officials for how long the virus will persist.

Go deeper

3 hours ago - Politics & Policy

Scoop: Kaine, Collins pitch Senate colleagues on censuring Trump

Sen. Tim Kaine speaks with Sen. Susan Collins. Photo: Andrew Harnik/AP via Getty Images

Sens. Tim Kaine and Susan Collins are privately pitching their colleagues on a bipartisan resolution censuring former President Trump, three sources familiar with the discussions tell Axios.

Why it matters: Senators are looking for a way to condemn Trump on the record as it becomes increasingly unlikely Democrats will obtain the 17 Republican votes needed to gain a conviction in his second impeachment.

3 hours ago - Politics & Policy

Scoop: Anthony Coley to lead Justice Department public affairs

Photo: Xinhua/Ting Shen via Getty Images

Judge Merrick Garland, President Biden’s nominee for attorney general, has tapped Anthony Coley, an Obama-era Treasury Department official, to serve as a senior adviser and to lead public affairs at the Department of Justice, according to people familiar with the matter.

Why it matters: As the public face of the DOJ, Coley will help explain — and defend — the department's actions, from sensitive cases to prosecutorial decisions, including the investigation into Hunter Biden.

AP: Justice Dept. rescinds "zero tolerance" policy

A young girl waves to onlookers through the fence at the U.S.-Mexico border wall in San Ysidro, California, in Nov. 2018. Photo: Sandy Huffaker/AFP via Getty Images

President Biden's acting Attorney General Monty Wilkinson issued a memo on Tuesday to revoke the Trump administration's "zero tolerance" immigration policy, which separated thousands of migrant children from their families at the U.S.-Mexico border, AP first reported.

Driving the news: A recent report by Justice Department Inspector General Michael Horowitz emphasized the internal chaos at the agency over the implementation of the policy, which resulted in 545 parents separated from their children as of October 2020.