Mnuchin, Schumer Optimistic on Senate Passage of Coronavirus Bill

The Senate may pass a $2 trillion coronavirus economic stimulus package as soon as Tuesday, negotiators said, insisting they had made significant progress in late-night negotiations toward reaching a bipartisan deal on the sweeping legislation.

Treasury Secretary Steven Mnuchin, said he would return to the Capitol for more talks on Tuesday, after a day of negotiations ended at midnight without an agreement.

Neither Mnuchin nor Senate Democrat Leader Chuck Schumer would provide details, but both were optimistic. "That's the expectation, that we will finish it tomorrow and hopefully vote on it tomorrow," Schumer told reporters.

Republicans, Democrats, and top Trump aides had negotiated for days over the package, which would be the third and largest passed to address the crisis if it is backed by both the Republican-majority Senate and Democratic-majority House of Representatives.

A key sticking point has been a $500 billion "Exchange Stabilization Fund"  that Democrats have labeled a "slush fund."

Politico reporter John Bresnahan, citing three unnamed sources, tweeted late Monday that Mnuchin had agreed to "significant oversight" of the fund.

To become law, the measure must be signed by Trump. Mnuchin said he spoke to the president at least 10 times during the marathon negotiating session on Monday.

Democrats twice blocked attempts to advance a Republican version of the bill as negotiations on a bipartisan measure continued.

Democrats said the Republican plan did not provide enough money for states and hospitals, lacked sufficient aid for unemployed Americans and did not include adequate supervision of a massive fund to aid big businesses.

The coronavirus pandemic has killed more than 550 people in the United States and sickened more than 43,800, shuttered thousands of businesses, thrown millions out of work and led state governors to order about 100 million people - nearly a third of the nation's population - to stay at home.

House Speaker Nancy Pelosi, D-Calif., who was consulted in the talks, introduced her own $2.5 trillion counterproposal to the Republican plan as the negotiations continued.

It was not clear early on Tuesday whether Pelosi supported the bipartisan plan in the works in the Senate.

Trump's administration has launched a major push for action to blunt the economic impact - and steep stock market decline - from the pandemic, after Trump spent weeks dismissing the risks.

While details of the emerging bipartisan bill were not available, it is expected to provide financial aid for Americans out of work because of the virus and help for struggling industries such as airlines.

Republicans normally hold a slim 53-47 majority in the Senate, meaning they need Democratic support to garner the 60 votes required to advance most legislation.

But the coronavirus has trimmed their ranks, giving Democrats even more leverage. Republican Senator Rand Paul has tested positive for coronavirus and four other Republicans are also unable to vote because they were exposed to Paul or others with the virus.

This report contains material from Reuters.