White House Chief of Staff Mark Meadows stated on Tuesday that aid to state and local governments poses the biggest impediment in the method of a aid deal, at the same time as “real progress” was being made between Democrats and Republicans on a possible new stimulus invoice. 

“As we look at the number of things that we actually agree to, and the amounts of money allocated to those areas, probably the biggest stumbling block that remains is the amount of money that would go to state and local help,” Meadows stated throughout an interview on CNBC’s “Squawk on the Street.” 

Talks between the White House and Democratic congressional leaders broke down final month after the two sides failed to agree on the phrases of a fifth bundle designed to include the financial fallout brought on by the Covid-19 pandemic.

Meadows and Treasury Secretary Steven Mnuchin have represented President Donald Trump in the negotiations with Democrats, who’re being led by House Speaker Nancy Pelosi, D-Calif. and Senate Minority Leader Chuck Schumer, D-N.Y. 

While some elements of a possible rescue invoice, equivalent to direct funds to Americans and extra money for small companies, have bipartisan assist, the White House is opposed to spending as a lot as the Democrats have requested for on objects equivalent to unemployment help and funding for state and local governments. 

Democrats have pushed for practically $1 trillion in aid to municipalities hit by income shortfalls because of the coronavirus disaster, but Meadows stated that determine was not “based on reality.” 

Meadows stated that the GOP would assist solely $150 billion in new funding to state and local governments. That determine, on high of a beforehand allotted $150 billion, would rectify what he stated was an roughly $275 billion loss in revenues sustained throughout the recession. 

Amid the Election Year deadlock, the GOP has floated passing a “skinny” invoice together with solely the areas on which the two sides agree, but Democrats have rejected the thought. 

“Democrats have compromised in these negotiations,” Pelosi spokesman Drew Hammill said last week. “We offered to come down $1 trillion if the White House would come up $1 trillion. We welcome the White House back to the negotiating table but they must meet us halfway.”