Senate Agrees on $10 Billion Covid Bill Without Global Aid

(Bloomberg) -- Senate Democrats and Republicans have struck a deal to provide $10 billion for coronavirus vaccines and therapeutics after Democrats dropped a last-minute attempt to include global vaccination funds in the bill.

Senate Majority Leader Chuck Schumer and Republican Senator Mitt Romney of Utah, who had been leading negotiations on the package, announced the agreement Monday. It meets GOP demands that any new Covid-19 funds be paid for with unspent funds from earlier pandemic relief packages.

The bill would provide far less money than the $22.5 billion that President Joe Biden sought early last month, though lawmakers widely expect another infusion will be needed, especially if a new variant of the disease spreads.

“While we were unable to reach an agreement on international aid in this new agreement, many Democrats and Republicans are committed to pursuing a second supplemental later this spring,” Schumer said.

The White House backed the agreement and urged its quick passage. White House Press Secretary Jen Psaki said the administration would work to build support for more money for global pandemic aid.

Bill Summary: Senate Bipartisan Covid Aid Deal

The accord would give the Biden administration $5 billion to buy Covid-19 therapeutics and antivirals and another $4.75 billion that could be used for a wider range of purchases, such as coronavirus tests and vaccines. It would also provide $750 million for research projects for future Covid vaccines and therapeutics.

The deal would re-purpose unspent funds from a variety of pandemic relief efforts. Those include programs to protect aviation jobs and funnel money to music and theater venues. Funds will also be redirected from higher education relief and small business credit programs, along with Agriculture Department funds.

The agreement includes language pushed by Senators John Cornyn, a Texas Republican, and Alex Padilla, a California Democrat, to give states flexibility to use previous Covid funding for infrastructure and disaster relief.

Psaki said the package would “fund the most immediate needs, as we currently run the risk of not having some critical tools like treatments and tests starting in May and June.”

She added that the global assistance is critical to reducing the risk of new variants spreading, “which in turn is critical to the safety of the American people.”

A $15.6 billion package that had included the global funds was stripped out of the annual 2022 government budget bill in March as a result of objections from some Democrats to using money from an earlier rescue package targeted to state and local government aid.

Some House Democrats said they would oppose a package that doesn't include the global aid.

“My position has not changed: if the Senate cuts global vaccine funding from the Covid supplemental bill, we will have a big problem in the House,” Illinois Representative Raja Krishnamoorthi tweeted Monday.

Leaders in the Senate and House may attempt to hold votes on the package by the end of this week, before Congress embarks on a two-week holiday recess. Getting the bill through the Senate may be difficult given a push by Democrats to confirm the nomination of Ketanji Brown Jackson to the Supreme Court this week as well. The procedural votes around that nomination are likely to take up most of the week.