As they closed in on a $900 billion stimulus deal, top Democrats and Republicans in Congress haggled on Thursday over a handful of remaining issues that could help determine how much power President-elect Joseph R. Biden Jr. will have to act once he takes office to provide additional help for the sputtering economy.
Democrats were making a last-ditch effort to provide emergency aid to states, which they argued was critical to helping states weather the pandemic and avoid huge layoffs and cuts in services that could reverberate through the economy. Republicans were working to limit the power of the Federal Reserve to bail out businesses, municipalities or other institutions in the future.
Both disputes could carry heavy consequences for Mr. Biden, who will take office facing a cascade of fiscal crises in states around the country — which will be even more dire if Congress fails to provide at least some assistance now. And reining in the Fed’s lending authority could close off crucial avenues for his administration to stave off more economic havoc.
With Congress running out of time to cement a stimulus agreement and avoid a government shutdown on Friday, leaders remained optimistic that they would ultimately find a resolution, although their wrangling could bleed into the weekend.
“We made some progress this morning,” Speaker Nancy Pelosi of California, told reporters at the Capitol. Asked if a final agreement would be announced by the end of Thursday, she said: “We’ll let you know.”
The plan under discussion would provide a dose of badly needed relief after months of stalled negotiations and amid a national public health crisis that has killed more than 307,000 people.
That includes a new round of stimulus payments, probably $600, to American adults; a temporary infusion of enhanced federal jobless aid of around $300 per week; and rental and food assistance. It would also revive a loan program for struggling small businesses and provide funding for schools, hospitals and the distribution of the vaccine.
With plans to merge a final agreement with a sweeping omnibus government funding package, Congress may have to approve another stopgap spending measure to avert a government shutdown on Friday while negotiators put the finishing touches on the stimulus deal. Senator Mitch McConnell, Republican of Kentucky and the majority leader, warned Republicans on Wednesday that they should prepare to remain in Washington through the weekend.
“I hope it wouldn’t be more than 24 or 48 hours,” Senator John Thune of South Dakota, the No. 2 Republican, said of a possible stopgap bill, adding, “I really think this is coming to a close.”
Ms. Pelosi, Senator Chuck Schumer of New York, the minority leader, and Steven Mnuchin, the Treasury secretary, spoke late Wednesday evening to continue ironing out differences over the measure, a spokesman for Ms. Pelosi said, and their aides continued talks throughout the day on Thursday.
